Custom Duty Package Insurance Policies for Owner of the Bonded Warehouse
The Insurers have released insurance policy for payment of duty to Commissioner of Custom on behalf of the owner of the warehouse who is licensed by Commissioner of Custom. The said policy is covering perils defined under Standard Fire and Special perils policy and additionally burglary , marine and Terrorism perils are also covered. In the policy, only perils are defined which means the peril’s exclusions as defined in the Fire policy will also be applicable. There are certain peril’s exclusions for which no add on cover is available which may cause the hardship to Warehouse owner as well as owner of the goods.
For Example: 1) Every warehouse is using Fork lift and Cranes and any loss due to this is exclusion under the peril “Impact Damage”.
2) The nature of certain material is of spontaneous combustion which is again exclusion under fire peril, how it is to be covered.
3) Certain materials require refrigeration and any loss due to change in temperature is an exclusion, how it can be covered.
This policy is also not covering various perils i.e. Accidental damage and deterioration of stock. Who will be responsible to pay the CD owner of the warehouse of goods.
The Owner should also cover goods under Standard Fire & Special Perils policy including custom duty amount to protect him for the perils not covered under policy issued to warehouse owner.