ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An Export and Import Insurance is designed to provide compensation to the exporters or importers for the loss or damage to the goods, whilst in transit, due to perils associated with transport. It covers for all possible damages to the cargo either onshore or offshore.

Detailed explanation-2: -Life Insurance is not a type of general insurance.

Detailed explanation-3: -Open Cover Cargo Insurance Policy: This kind of policy is issued for up to 12 months and is suitable for both exported and imported goods. Specific Voyage Policy: Usually issued before the transit begins, this cover is suitable for single transit.

Detailed explanation-4: -Transport Risk – This risk is associated with the loss of goods during transportation. Quality Risk – This risk is associated with the final quality of the products. Delivery Risk – This risk arises when the goods are not delivered on time. Exchange Risk – This risk arises due to the change in the value of currency.