declaration

(insurance) A method of reporting shipments to an insurance company under an open insurance policy. This “short form” calls for the name of the vessel and sailing date, points of shipment and destination, nature of commodity, description of units comprising the shipment, the amount of insurance desired and the number of the open policy under which the declaration is made. The declaration forms are prepared by the assured and are forwarded daily, weekly, or as shipments are made. The forms are forwarded to the insurance agent or broker for transmission to the insurance company. When full information is not available at the time a declaration is made, a provisional report may be sent in. The “provisional” is closed when value is finally known. The premium is billed monthly in accordance with the schedule of rates provided by the policy. The declaration is generally not used in cases where evidence of insurance must be supplied to a customer, to banks or to other third parties in order to permit collection of claims abroad. This calls for a special marine policy, occasionally referred to as a certificate. Declarations, therefore, are usually used for import shipments, not export shipments. See open policy; special marine policy; bordereau.

Was this article helpful?

Related Articles

Need Support?

Can't find the answer you're looking for?
Contact Support