Per Location Limit Vs Location Clause under Marine Insurance
There are two limits in the marine; insurance policy namely per bottom limit and per location limit under former limit the consignment value is defined per vessel/transport and in the later 200% of the former value is the limit for the material is lying at port/transporter godown for the reasons strike or labour disturbance in the port area. In case the value of consignments is expected to be more than 200%, the “Location Clause” should be incorporated which means the consignments up to that value can be kept for any reason at one location not only waiting of ship/port strike. In practice the Insurer is enhancing value of per location limit as required by Insured but it will have limited coverage’s.