Dear All,

Greetings from Beacon!! In our effort to keep on updating you on the various changes which come from to time, please see a recent circular (attached) which gives guidelines to be followed for Marine Cargo Transit cover. The gist of the circular is as below. Please note that the circular is effective from 01/02/2020

It has been decided to put the limit on minimum gross rates across all the marine Cargo Policies (for all commodities) as under:

1. All Marine Cargo Policies: Minimum Rates:
   • ICC A/ICC B AND ITC A : 0.01 %
   • Institute War & Strikes Clause : 0.005%
   • Inland SRCC Clause : 0.0025%
2. Risk Covered under ICC-C/ITC-B can get a maximum discount of 10% on the minimum rate of 0.01%. No discount on War, SRCC Premium rates.
3. Transits (other than crude oil) to or from or through or within the Persian or Arabian gulf and adjacent waters including the Gulf of Oman west of Longitude 58 degree E only” (to read as High Risk Area – HRA) will be covered subject to minimum additional Net Rate of 0.08% purely to cover War/SRCC coverage. Base premium rate to apply in addition to War & SRCC additional premium for each shipment.
4. Existing minimum qualifying turnover as per STOP circular Tech/M/140-113 dated 05.06.2014 now will be revised as INR 100 Crores against INR 50 Crores stated earlier.

Note:

• Existing rates with loss ratio of last 3 years including outstanding claims of the expiring year ( or for the period available if less than 3 years) not exceeding 70% can be allowed to be renewed at expiring rates even if it is below minimum rates mentioned herein.
• No foreclosure of existing insurance policies and replace them by new insurance at rates lower than stated above is allowed prior to 01.02.2020

Please find the circular stating the same: Circular

Regards,

Beacon Team