MARINE INSURANCE

Under the Insurance Decree No. 59 of 1976, it is compulsory that all importation into the Country, more particularly those involving the opening of letters of Credit with our local banks, should be insured with an approved insurer registered to carry on business in Nigeria. This decree came into effect on 1^st December 1976 and since then all importers have been forced to arrange their Marine Insurance locally. Even where letters of Credit are not involved, importers have taken the precautions of arranging Insurance locally as in the event of claims because it is relatively easier to pursue claims with local insurers than to do with oversea underwriters where there may be a lot of delay because of the distance involved.

It is our recommendation that any Marine Insurance you may want to arrange should be on the basis of All Risks and should incorporate the usual warehouse-to-warehouse clause, i.e. until the items covered are delivered to your premises subject, of course, to the usual 14days-clearance warranty.

Since your business may involve a continuous importation of various items of Machinery and Material, we will suggest that we arrange an open Marine Insurance for you, the procedure for which will be as follows:

• You are to advice us the details and general description of the items you are likely to be ordering together with the usual countries of origin and method of packing.
• The maximum total you are likely to order at any given time should also be advised to us and this will be known as the “Limit Per Bottom”.
• You are to give an indication of the maximum total you are likely to order in one year.
• A basis of valuation, which will also be used in the event of claims, is to be advised, i.e. the cost price (invoice plus a certain percentage to cover duty, freight and other handling charges).
• We will arrange an open cover policy on which no premium is charged initially but would provide automatic cover for all shipments thereafter.
• All shipments are to be declared to us on special forms to be provided for you, with relevant documents of invoice and Bill of Lading. Certificates to be issued thereon and premiums debited to you immediately.

SHORT – LANDED OR NON – DELIVERY

(a)     For any loss under this heading which is apparent at the time of delivery, your clearing agents are to ensure that they obtain relevant supporting documents in the form of Short – Landed Certificates,

Non – Delivery Certificates or Certificate of Discrepancy.

(b)     For any loss under this category, which is not apparent at the time of delivery, you are to report such loss on discovery immediately after examination and we will arrange the relevant survey. You will then in compliance with the policy document claim against the shippers’ carriers for such loss in order to protect your right of recovery.

DAMAGE CLAIMS

(a)     For any loss under this heading which may be apparent at the time of delivery, identical procedures as in (a) above will be adopted.

(b)     For any loss under this heading which may not be apparent at the time of delivery, but which may come to light following examination of the consignment we will pursue the same procedure as in (b) above.

We will pursue all matters concerning the claims to finality and this

will relieve you of administrative and financial burden of pursuing the

claims itself.

It is required of you and or of your agent however in the event of loss

to Preserve and /or exercise your right against the Carriers, Bailees or

other Third Party/Parties of their Agents by:

Claiming immediately on the carriers, Port Authorities or other

Bailee’s for any missing package.