Duty Insurance Policy, Increased Value Cover & Delay-in-Start-up (DSU) – National Insurance

Marine cargo and project-related shipments often involve complex risks beyond simple transportation loss or damage. Businesses that import goods, invest in high-value projects, or operate time-sensitive ventures need enhanced protection against financial exposures during transit and installation. National Insurance offers advanced marine extensions such as Duty Insurance Policy, Increased Value (IV) Cover, and Delay-in-Start-up (DSU) to safeguard businesses from hidden or consequential losses.

1. Duty Insurance Policy

When goods are imported into India, customs duty is a significant component of the total landing cost. If the goods are damaged during transit, even if the cargo value is insured, the customs duty paid may not be recoverable unless separately insured.

What is Duty Insurance?

Duty Insurance provides coverage for customs duty payable on imported goods, protecting the importer from financial loss in case of:

• Damage to the cargo
• Loss during transit
• Total or partial loss affecting the duty liability

Why Duty Insurance is Important

• Customs duty cannot be reclaimed after payment.
• If cargo is damaged but still attracts duty, the importer bears a financial burden.
• Duty may be very high depending on product type; Duty Insurance shields this amount.

Ideal For

• Importers of machinery, electronics, raw materials, medical equipment, chemicals, etc.
• Businesses paying high customs duty percentages.

2. Increased Value Cover (IV Cover)

Some goods—especially commodities, machinery, or products priced in foreign currency—may experience price fluctuations between the time of shipment and delivery. To safeguard against this, National Insurance offers Increased Value Cover.

What is Increased Value Cover?

This cover provides additional insurance on the cargo value to compensate for:

• Market price fluctuations
• Currency exchange variations
• Additional cost exposures not covered in the basic marine policy

Benefits of IV Cover

• Protects against financial loss due to rising replacement costs
• Ensures adequate indemnity if actual market value is higher than insured value
• Particularly useful when purchase is done in foreign currency

Ideal For

• Importers/exporters dealing with volatile-priced goods
• Commodity traders
• High-value machinery shipments

3. Delay-in-Start-up (DSU) Cover

Large construction, engineering, or infrastructure projects depend on timely arrival of critical machinery and equipment. If these items are damaged or delayed during transit, the project may not start on schedule—leading to substantial financial losses.

This is where Delay-in-Start-up (DSU) Cover becomes essential.

What is DSU Cover?

Delay-in-Start-up provides insurance against financial loss due to delayed project commencement caused by:

• Damage to cargo during transit
• Loss of essential machinery or project components
• Re-shipment delays
• Extended repair or replacement timelines

Coverage Includes

• Loss of anticipated revenue
• Extra financing costs
• Increased project overheads
• Penalty clauses for delayed completion

Why DSU Matters

• Even a single damaged shipment can delay an entire project.
• Helps maintain cash flow and financial stability during unexpected delays.
• Critical for EPC (Engineering, Procurement, Construction) and large-scale industrial projects.

Ideal For

• Construction companies
• Power plants
• Large industrial projects
• Infrastructure developers
• EPC contractors

Why Choose These Covers from National Insurance?

✔ Backed by decades of marine insurance expertise
✔ Custom-designed solutions for complex logistics and project risks
✔ Transparent and flexible policy structures
✔ Strong support and claim settlement network across India
✔ Ideal for businesses seeking advanced risk management

Conclusion

National Insurance’s Duty Insurance Policy, Increased Value Cover, and Delay-in-Start-up (DSU) provide powerful protection beyond basic marine insurance. These covers address real-world financial exposures—customs duty, price volatility, and project delays—ensuring businesses remain financially resilient even when unforeseen transit losses occur.

These specialized solutions are essential for importers, exporters, industrial manufacturers, and companies involved in large, time-sensitive projects.