Marine Cargo Insurance

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
  • Theft
  • 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