In Export – Import Business, there are mainly two types of insurances that plays a role:

1)     Marine Insurance

2)     Credit Insurance

The first category of insurance is governed by private General Insurance Companies and the second type of insurance is predominant by one government venture named ECGC (Export Credit Guaranteed Corporation of India).

There are other sub-types of functions for which insurance policies are taken by exporter – importer either as manufacturer or as merchant for securing their goods like:

3)     Insurance for security of cargo during STORAGE

4)     Insurance for internal transport of goods

5)     Insurance for fire safety, water damage etc

6)     Insurance against theft, pilferage, leakage, damage etc.

On any mishap with exporter importer during insurance coverage, he/she has approaches the insurance company who has provided insurance cover with much hope. Insurance company repudiates the claim taking excuse of any of below reasons:

a)      Premium is not paid in time and was paid after stipulated dates

b)     Premium is not paid in stipulated amount

c)      It is not justified that premium is paid for this voyage i.e. there is no evidence of payment of the premium for the same policy and before stipulated date

d)     Claim is hypothetical and extravagant

e)      Exporter or Importer has invited this problem by his own willful action or by his own deliberate negligence and insurance company can’t accept / entertain claims for any willful conduct of the insurer

f)       Mishap is trumped up by the beneficiary (exporter / importer) and claim is done with malafide intention to take insurance.

g)      Claim is irrational and not in proportion

h)     Independent surveyor’s report is not acceptable the insurer (i.e. insurance company) for passing the claim and the insurer denies it and repudiate the claim or other surveyor will be appointed

Upon repudiation of the clam, the whole matter approaches the court. Reasons explained above by insurance companies could be right or wrong which need to be judged by the courts.

This section covers such interesting cases contested between the insurance company and the exporter / importer. These cases are the immense source of the knowledge for exporter / importer or the insurer to learn.

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