What is Marine Cargo Insurance?

It is a policy that provides you with indemnity and financial protection for loss of or damage to your cargo during transit  by:

  • Sea
  • Land
  • Air
     

It is ideal for:

  • Importers/exporters
  • Logistic companies on behalf of their customers
  • Freight forwarders on behalf of their customers
  • Manufacturers
  • Other buyers and sellers engaged in international and/or local trade
Each transit option provides different scopes of cover.

Marine Cargo Insurance Conditions

There are four insurance conditions that are mostly used in marine insurance:

  • Institute Cargo Clause AIR
  • Institute Cargo Clauses "A"
  • Institute Cargo Clause "B"
  • Institute Cargo Clause "C"

Key coverage

Here is an overview of your coverage

INSTITUTE CARGO CLAUSE (A)

INSTITUTE CARGO CLAUSE (A)

  • Risk
    Covers all risk of loss of or damage to the subject matter, unless excluded by the provisions of clauses
  • General Average
    Covers general average and salvage charges
  • Both to Blame Collision Clause
    This insurance indemnities you for any risk insured herein, against liability incurred under any Both to Blame Collision Clauses in the contract of carriage

INSTITUTE CARGO CLAUSE (B)

INSTITUTE CARGO CLAUSE (B)

  • Risk
    Covers loss or damage to the subject-matter insured reasonably attributable to:
    • fire or explosion
    • vessel or craft being stranded grounded sunk or capsized
    • overturning or derailment of land conveyance
    • collision with any external object
    • jettison or washing overboard
    • entry of water into vessel

How much is my premium?

Your premium may vary, depending on:

  • Our underwriting requirements
     

Download our brochures under the Product Literature

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What We Don't Cover

  • Loss, damage or expense
    • Attributable to willful misconduct of the  Assured
    •  Caused by inherent vice or nature of insured items
    • Ordinary leakage, loss in weight or volume, and wear & tear of insured items
    • Arising from insolvency or financial default of the owners, managers, charterers or operators of the vessel
    • Arising from unseaworthiness of vessel or craft
    • Arising from unfitness of vessel craft, conveyance, container or lift van for safe carriage of insured items, where the Assured or their servants are privy to such unseaworthiness or unfitness when the insured items are loaded therein
    • Caused by insufficiency or unsuitability of packing or preparation of the insured items (packing shall be deemed to include stowage in a container or lift van but only when such stowage is carried out prior to attachment of this insurance by the Assured or their servants
    • Proximately caused by delay, even though the delay be caused by a risk insured against
    • Arising from the use of any weapon of war or any weapon employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter
  • The Underwriters waive:
    • Any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject matter insured to destination.
    • This does not apply to the Assured or their servants are privy to such unseaworthiness or unfitness
  • War and Strikes 
    • Normally included by way of the Institute War & Strikes Clause (subject to an additional premium)
       
Institute Cargo Clauses (A), (B) or (C) 1.1.09
  • Loss, damage or expense
    • Attributable to  willful misconduct of the assured
    • Caused by inherent vice or nature of insured items
    • Ordinary leakage, loss in weight or volume, and wear & tear of insured items
    • Insolvency or financial default of owners managers charterers or operators of the vessel where at the time of loading of the subject matter insured on board the vessel, the Assured are aware or in the ordinary course of business should be aware
    • that such insolvency or financial default could prevent the normal prosecution of the voyage

      This exclusion does not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject matter insured in good faith under a binding contract

    • Unseaworthiness or unfitness of vessel or craft  for safe carriage of insured items, and where the Assured are privy to such unseaworthiness or unfitness at the time the insured items are loaded therein

      Exclusion shall not apply where the contract of insurance bas been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract

    • Unfitness of container or conveyance for the safe carriage of  the insured items, where loading therein or thereon is carried out prior to attachment of this insurance or by the Assured or their employees and they are privy to such unfitness at the time of loading.
    • Insufficiency or unsuitability of packing or preparation of insured items to withstand ordinary incidents of the insured transit where such packing or preparation is carried out by the Assured or their employees or prior to the attachment of this insurance (packing shall be deemed to include stowage in a container and “employees” shall not include independent contractors)
    • Proximately caused by delay, even though the delay is caused by a risk insured against
    • Directly or indirectly caused by or arising from the use of any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter
  • The Insurers waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject-matter insured to destination
  • War and strikes (normally included by way of the Institute war & strikes clause subject to additional premium)
Note: This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

Important information

The above product information is very general and is not an insurance contract/agreement. Detailed terms and conditions will be referred to, in the policy. It is crucial that you read and understand the policy’s terms and conditions well. 

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