The reason this above question needs to be asked is- there is no standardized proposal form for transit insurance.
To get the correct answer, we need to answer two questions:
A. What is the end use of this information
B. Who is going to use this data and for what purpose
The answer to the first question is simple - a marine specific policy needs to mention the details of the cargo (subject matter of insurance), mode of carriage etc.in the Policy document. A specific answer to this is provided in Section 25 of Marine Insurance act, 1963.
Section 25 of Marine Insurance Act:
A marine policy must specify:
2nd question is answered in sections 19 and 20 of the Marine Insurance act. After reminding the customers about the need for utmost good faith in insurance contract, Section 20 underlines the relevance of information regarding material facts for underwriting that business.
Section 19 of Marine Insurance Act:
Insurance is Uberrimae Fidei.:
A contract of marine insurance is a contract based upon the utmost good faith, and if the utmost good faith be not observed by either party, the contract may be avoided by the other party.
Section 20 of Marine Insurance Act:
Disclosure by Assured:
Underwriting, as we all know, is a two step process; the first step is a decision as to accepting or not accepting a proposal and second is to apply suitable premium and terms and conditions to the risk.
To sum up, a quick list of material facts for Transit Insurance is:
1. Nature of goods, number of units and packing - eg. 28 cases of of machinery professionally packed.
2. Sum Insured (including Trade arrangement)- CIF +10%
3. Voyage: From Consignor's warehouse to Port (at destination)
4. Terms of cover sought: All Risks (ICC A), WAR & SRCC
5. Any variation/ additional cover: FOB (Free on board), Additional storage required.