Highlights of Duty Insurance Policy

Duty Insurance Cover may be granted only on goods imported to India. The insurance shall be granted only if there exists insurance on CIF value of cargo itself and against the same risks as the basic cargo insurance and only on the basis of a signed proposal form.

The insurance should be granted only to the party in whose favour the import license has been issued/officially endorsed. In respect of imports by State Trading Corporation in India and/or any other government body under their own import licenses, and allotment made to various parties on “High Seas Sale Basis”, such allottees may be considered as actual holders of the licenses provided an allotment letter or certificate from S.T.C. of India or government body concerned is produced as a proof.

No insurance on “Increased Value” or “Duty” shall be granted after arrival of carrying ship at destination port. This however shall not apply where such insurances have been granted under open covers.

The sum insured for “Duty” is adjusted on the basis of actual assessed duty. The Policy is one of pure indemnity.

The “Duty” Policy excludes claims in respect of: Total loss of whole or part of cargo prior to duty becoming payable.

General Average, Salvage and / or Salvage Charges arising from any casualty occurring prior to duty becoming payable. The insurance is not assignable.

The assured should lodge a claim with Customs Authorities within the stipulated time (6 months from the date of payment of duty) for refund of duty where admissible and with carriers or other as applicable and any refund obtained should go to reduce the claim under the policy.