General Average There is a General Average act when and only when any extraordinary or expenditure is intentionally and reasonably made or incurred for the common safety, for the purpose of preserving from peril, the property involved in a common maritime adventure. Extraordinary Sacrifice in a General Average Below are examples for an extraordinary sacrifice, though not limited to:Damage done to the engine to refloat the vessel after grounding. Jettisoning of cargo under Deck. Jettisoning of Cargo on Deck as per Custom of the trade. Slipping of Anchor and Cable … [Read more...]
Archives for May 2020
What is a Marine Policy? Basics you need to know!
A contract of Marine Insurance shall not be submitted in evidence unless it is embodied in a Marine Policy accordance with Marine Insurance Act. The policy may be executed and issued either at the time when the contract is concluded or afterwards. Dictionary Meaning of " POLICY " : A set of ideas or a plan of what to do in particular situations that has been agreed to officially by a group of people, a business organization, a government, or a political party. Before proceeding further, please go through an example below:A Marine Policy must specify the following:Name of the … [Read more...]
Documentary Credit System in Shipping – Basics Explained with Flowchart
Documentary Credit System is a payment system used in international trade where the BUYER and SELLER are from different countries. It is developed to include a measure of security to trade transactions by involving a third party, the BANK.The bank provides additional security for both parties i.e. it plays the role of an intermediary by assuring the seller that he will be paid if he provides the bank with the required documents and by assuring the buyer that his money will not be paid unless the shipping documents evidencing proper shipment of his goods are presented. How Documentary … [Read more...]