I (Meaning and importance of Exports) Unit Structure

1) Selection of Insurance Company 
– 
The exporter needs to select the insurance firm to obtain 
marine insurance policy. General insurance business in India is the 
monopoly of General Insurance Corporation (GIC) of India and its 
four subsidiaries. However, if an exporter intends to insure with a 

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foreign company, then prior permission of the RBI must be 
obtained. 
2) Type of policy 
– 
There are various types of marine insurance policies issued 
by the GIC to suit the requirements of the exporters. The exporter 
should decide the appropriate type of policy taking in to 
consideration his requirements. Such as 
– Time policy, Voyage 
policy mixed policy etc. 
3) Proposal Form 
– 
To obtain a marine insurance policy, there is a need to fill up 
the proposal form. Complete, correct and clear information must be 
mentioned in the proposal form. Any misrepresentation or non-
disclosure will render the contract null and void. 
4) Verification of proposal form 
– 
The insurance company verifies the proposal form and 
checks the relevant details. If it is satisfied, it accepts the proposal 
form. 
5) Payment of premium 
– 
The insurance premium charges may vary from company to 
company and country to country. Payment on marine insurance 
policy can be made in rupees provided exporter certifies that 
insurance charges on the shipment in question have to be borne by 
him. 
6) Insurance policy 
– 
After making payment of insurance, the insurance company 
issues the insurance policy which contains the following 
– 
a) The name and address of the insurance company. 
b) The name and address of the insured. 
c) A description of the risks covered. 
d) A description of the goods insured. 
e) The sum insured. 
f) The date of issue, and the period of the policy. 
g) The places where claims are payable together with details of 
the agent to whom claims may be directed. 
h) Any other details, as applicable.