Marine Insurance

Marine Cargo Insurance

Marine Cargo Insurance

Marine cargo insurance is a class of property insurance that insures property while in transit against loss or damage arising from perils associated with the navigation of the sea or air and subsequent land and inland waterways.

Who can Insure ?

Buyers, Sellers, Import/Export merchants, Buying Agents, Contractors and Banks-in fact any one engaged in the business of movement of goods.During the course of transit, the cargo may not always be at your risk. For instance, you can sell it to a buyer. Marine Cargo Policies cover your interest in the cargo insured and also extends to cover the interests of any third party to whom you have assigned interest upon transfer of ownership, as determined by the Terms of Sale.

What is Insured ?

  • export and import shipments
  • goods in transit by rail sea road air or post
  • goods carried by coastal vessels plying between the various ports within the country
  • cargo transported by small vessels or country craft over inland waters
  • goods moved from place to place by river transport

Responsibility for Arranging Insurance

Who arranges insurance-the buyer or the seller? Or do both need some protection?The answer depends on the Sale Contract the two enter into. For each Sale Term such as FOB, CFR,DDP, DDU etc., we have tailor-made policies for both the seller and the buyer respectively.

Marine Cargo Coverage

Marine Cargo policies are based on Institute Cargo Clauses, that appear in three versions for export/import cargos viz., ICC (A), ICC (B) and ICC(C).ICC (A) is based on All Risks basis while (B) and (C) are named-perils policy.All three clauses have certain exclusions.

Similarly for the Inland cargo movements, the marine clauses are ITC-A , ITC-B ITC-C

What the Institute Cargo Clauses Cover

Marine Cargo Policies coverage’s are as

  • Actual Total Loss
  • Constructive Total Loss
  • Particular Average i.e., Partial Loss by an insured peril
  • General Average
  • Collision Liability
  • Expenses such as Survey Fees, Reconditioning Costs, Forwarding Expenses, Sue and Labour etc.
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    Principal exclusions, which appear in the Institute Cargo Clauses are  

  • Loss or damage due to Inherent Vice
  • Loss or damage due to Delay
  • Loss or damage due to Insufficiency of packing
  • Loss or damage due to insolvency, financial default of ship owners, etc.
  • We have dedicated products that considerably widen the scope of cover offered by the Institute Clauses.