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Special Declaration Policy

This is a special type of Policy (a form of floating policy) issued in India, originally formulated by the Tariff Advisory Committee for Marine Inland Transits exceeding a prescribed volume of estimated annual turnover.  Usually issued to clients who have large turnover with many and frequent dispatches of goods within India by rail, road, air or inland waterways.

1.  The minimum annual estimated dispatches (annual turnover including inter-depot movements) shall be INR 2 crores for the individual insured concerned;
2.  Policy shall not be issued in joint names, even in respect of Holding/Subsidiary companies. However, in case of Bank interests involved, name of the Bank may be recorded in the policy.
3.  Policy shall not be issued to Transport Operators/Contractors, Clearing, Forwarding and Commission Agents or Freight Forwarders, either in own name or jointly with the owner of the goods, except goods owned by them.
4.  Policy is not assignable or transferable.  However, if interest in the goods has passed on to consignee, claims may be settled with such consignee, if required by assured.
5.  Policy issued based on a completed Proposal Form incorporated in the Policy by reference as basis of contract.

Sum Insured:
- Based on previous year's turnover or a fair estimate of annual dispatches.  If estimated annual turnover found inadequate in mid-year, increase in sum insured allowed upon payment of difference premium, but only once during currency of the policy. If even the enhanced Sum Insured is exhausted, the Policy will cease and for the remaining period, Marine Open Policy will be issued (but without any discount)
- Renewal Sum Insured will be based on previous year's original Sum Insured plus interim increase, if any plus Sum Insured under the Open Policy, if any, issued during the previous year.

Basis of Valuation:
As agreed, but not exceeding C.I.F. + 10%

Annual Turnover:
Comprises of (a) all incoming and outgoing consignments including capital goods, raw materials, stores, finished and semi-finished products.  Each transit, including inter-depot transfers, dispatches to distributing centers or processing centers, if any, shall be treated as separate transit for the purpose of the policy.

1. Discounts are allowed on Tariff rates;
2. Mid-term change in terms of cover not allowed

Periodic declaration, at least once in a quarter, and final premium will be adjusted on receipt of final declaration to be submitted within 60 days of the expiry of the policy. Policy renewal is subject to insured submitting declarations at least for the first 9 months.

Cancellation is allowed by either party by giving 30 days notice in writing for transit risks and notice as per tariff for SRCC risks.  In case cancellation is at the assured's option, premium calculation shall be based on normal Tariff rate, subject to minimum premium of INR 5,000.