The Risk

Port authorities and terminal operators face a combination of operational, commercial and environmental risks. The risks range from damage to vessels to potential loss caused by port blockage and environmental pollution as well as resultant liability caused by oil spills.

The Solution

Port Package Policy is a comprehensive package of insurance products designed to cope with the combination of commercial and environmental business risks faced by port authorities and terminal operators. The policy is divided into several sections that typically include the following:

	Property damage
	Vessels/Floating objects
	Cargo Handling Equipment
	Business Interruption
	P&I/Port Liabilities
	Removal of Wreck
	Clean up cost

The Cover

With Port Package Insurance, you can pick and choose the covers you require and amount up to which you want to cover your various risks. The covers include:

	Physical damage to property by fire and other natural perils like storm, cyclone, tempest, hurricane, etc.
	Damage to vessels and other floating objects including all risks involved with dredging operations.
	Damage to surrounding property due to collapse of cranes or winches; or explosion of boilers; or flying fragments e.g. from
	welding sets etc.
	Port Blockage.
	Business Interruption consequent upon damage due to any peril insured under the policy.
	Wreck removal, or removal of debris, of property insured being destroyed or damaged by a peril insured against.
	Fines and duties.
	Investigation, defence and mitigation costs.
	Disposal, quarantine and disinfection costs.
	Architects’, surveyors’ and consulting engineers’ fees necessarily incurred in the reinstatement of the property, consequent upon its destruction and damage.
	Loss or damage to equipment including loss due to strikes, riots and terrorism.
	Liabilities for loss or damage to cargo, customer’s equipment and ships.
	Liabilities arising from errors and omissions including delay and unauthorised delivery.
	Third party liabilities including collision/impact and sudden accidental pollution
	Legal costs incurred in defence of any claim arising from accident insured against provided, prior written consent taken from underwriters

Major Exclusions

	Earthquake and volcanic eruptions which are excluded under the ITC - Hulls Port Risks 20/07/87 may be additionally covered.
	Cover for vessels and crafts may be extended to include those perils which are covered under Institute Additional Perils Clause -
	Hulls dated 1/10/83 (Cl. 294), such as, negligence and error of judgement of any person whatsoever, part having latent defect,
	boilers that burst, shafts that break etc.
	Additional coverage provided for demolition as well as increased costs for re-construction in respect of large cranes and lifting
	gears.
	Additional cover for business interruption following blockage of berth due to accidental sinking or stranding of a vessel, or due to
	any other accident covered.
	Extension can also be sought for loss of rent, should the assured lose a tenant as a result of loss or damage to building.
	Ports Liabilities cover can be extended to cover Fines and Duties, Wrongful Delivery of Cargo and Infringement of personal rights
	Fines and Duties Extension covers various fines and penalties imposed on the insured following an unintentional breach of any
	rules and regulations and/or any statutory provisions. Fines can be in the form of customs duties, sales tax, excise, VAT etc., or
	confiscation of property by an authority.

General Exclusions

	Intentional act of the assured or willful misconduct of the assured
	Inherent vice or defective design
	Normal wear & tear
	Earthquake, including Tsunami, seaquake and/or volcanic eruptions (extensions can be granted on payment of additional
	premium)
	Non-accident pollution
	Acts of war, civil war, mines, torpedoes except whilst waterborne. Cover for war perils can be procured for vessels under ITC -
	Hulls War Risks Clauses 1/10/83
	Strike, civil commotion
	Nuclear risks
	Radioactive contamination
	Damage caused by chemical, biological, biochemical or electromagnetic weapon
	Claims arising out of Asbestos and/or related diseases
	Order, demand, appropriation, seizure by any Government Authority
	Compliance with all statutory regulations related to carriage, handling and storage of dangerous cargo
	Fines and Duties (could be covered by extension)
	Road Vehicle Liabilities
	Employer’s Liabilities

For further information contact:

Amit Mannari
Howden Insurance Brokers India Private Limited
Ground Floor, Bombay Dyeing Administrative Building
Pandurang Bhudkar Marg, Worli
Mumbai - 400 025, India.
Telephone: +91 22 6655 8888; +91 22 6655 8821
Telefax: +91 22 6654 8833
Email: amit.mannari@howdenindia.com