Marine Cargo Insurance
Marine Cargo Insurance is an integral part of National / International Trade and is required by importers, exporters, manufacturers, distributors, retailers, wholesalers and others engaged in the movement of goods by sea, air, road, rail and post.
The risks/hazards during transit
The main hazards to which moving goods and/or property are exposed during transit are:
- Perils of the sea
- Malicious Damage
- Fire and Accidental Damage, etc
Types of policies:
- Specific Policy: a policy for a single shipment by sea/air/rail/post
- Open Policy: an annual policy subject to monthly declaration
- Open Cover: an annual policy subject to a deposit premium and annual adjustment
Scope of Cover
- Provides cover against loss or damage to cargo during transit from one place to another by any or more modes of transport.
- Marine Policy coverage varies from a restricted cover to an All Risk Cover.
- Goods insured on 'All Risks' terms will be covered on the conditions of the Institute Cargo Clauses (A) subject to the named exclusions.
Premium calculation factors
- Nature of Cargo
- Mode of Conveyance
- Nature of Packing
- Maximum value of cargo to be shipped at a single at any one time in anyone vessel, conveyance or aircraft etc.
- The maximum value any one location where goods are likely to accumulate, e.g. port of loading, discharge.
- Past Claims (Paid + outstanding) if any