Marine Cargo Insurance
Marine Cargo insurance provides protection for loss of or damage to your cargoes during the course of transit from one place to another in the world.
Coverage is usually effected on a “per voyage” basis and can either be effected by the buyer or the seller depending on the contract of sales.
Different types of insurance coverage are provided for cargoes carried by different mode of transportation :
Shipment by Vessel
The usual insurance clause available are :
- It covers all fortuitous loss of or damage to the interest insured
- It covers general average and salvage charges
- to indemnify the Assured against the proportion of liability under the contract of affreightment “Both to Blame Collision Clause” as is in respect of a loss recoverable hereunder.
It covers loss of or damage to the interest insured attributable to :
- fire or explosion
- vessel or craft being stranded grounded sunk or capsized
- overturning or derailment of land conveyance
- collision or contact of vessel craft or conveyance with any external object other than water
- discharge of cargo at a port of distress
- earthquake volcanic eruption or lightning
- general average sacrifice
- jettison or washing overboard
- entry of sea lake or river water into vessel craft hold conveyance container lift van or place of storage
- total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft
It covers loss of or damage to the interest insured attributable to :
- fire or explosion
- vessel or craft being stranded grounded sunk or capsized
- overturning or derailment of land conveyance
- collision or contact of vessel craft or conveyance with any external object other than water
- discharge of cargo at a port of distress
- general average sacrifice
- jettison
Sending by Air
The cover given is similar to that of shipment by vessel except that there is only one type of insurance clause available. Unlike shipment by sea where we have the A, B or C Clauses, shipment by air only have the Institute Cargo Clauses (Air).
Inland Transit
This insurance will be subjected to the Overland Transportation Cargo Insurance Clauses which covers total or partial loss of or damage to the insured goods caused in the course of transportation by natural calamities – windstorm, lightning, earthquake, flood etc. or by accidents – collision, overturning or derailment of the conveyance, including grounding, stranding, sinking or collision of the craft in case crafts are employed, and/or collapse of tunnel, landslide, fire and explosion.
Sending by Post and/or Courier Service
The shipment by post and/or courier service can be sent by any mode of transportation (sea, air or land). In any case, the clause ‘Mail and/or Parcel Post/Courier Service Clause’ will be applied.
Tractor and Trucker Owner's Cargo Liability Insurance
This type of insurance is effected by the Carrier’s or the Transport Company to protect their own interest that is, their legal liability based on negligence liability principle and/or their contractual liability for loss of or damage to cargoes carried by them.
General Exclusions for all Clauses
- Wilful misconduct of the Assured
- Ordinary leakage, loss in weight, wear and tear
- Insufficient or unsuitability of packing
- Inherent vice or nature of subject-matter insured
- Unseaworthiness of vessel (when the Assured is privy to it)
- Delay even though caused by a risk insured against
- Insolvency or financial default of carrier
- Deliberate damage or destruction of the subject-matter insured
- Use of nuclear weapon
- War and Strikes
- Terrorism
- Radioactive contamination, chemical, biological, bio-chemical and electromagnetic weapons
- Nuclear energy risk
- Seepage and pollution
Insuring Terms
- Institute Cargo Clauses (A) 1.1.82
- Institute Cargo Clauses (B) 1.1.82
- Institute Cargo Clauses (C) 1.1.82
- Institute Cargo Clauses (Air) 1.1.82 (Excluding Sendings by Post)
- Institute War Clauses (Cargo) 1.1.82
- Institute War Clauses (Air Cargo) 1.1.82 (Excluding Sendings by Post)
- Institute Strikes Clauses (Cargo) 1.1.82
- Institute Strikes Clauses (Air Cargo) 1.1.82
- Institute Classification Clause 01.01.2001
- Institute Radioactive Contamination, Chemical, Biological, Bio-chemical and Electromagnetic Weapons Exclusion Clause 10.11.2003
- Institute Cyber Attack Exclusion Clause 10.11.2003
- Computer Millennium Clause (Cargo) JC97/077
- Cargo Termination of Transit Clause (Terrorism)
- Cargo ISM Endorsement JC98/019
- Cargo ISM Forwarding Charges Clause
* The information contained in this website is a general summary. All terms and conditions are set out in the policy.