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Marine Cargo Insurance
This insurance covers the risks of loss, damage,
expenses and liability to goods insured during
transportation from one place to another, anywhere
in the world. Coverage is usually effected on a "per
voyage" basis i.e. from the time the goods leave the
premises of the seller till the time they finally
arrive at the buyer's premises. There is no period
specified in the policy. Coverage can either be
effected by the buyer or the seller depending on the
Contract of Sales.
The process of transportation includes air freight,
ocean freight and overland carriage. The marine
cargo insurance is to indemnify the cargo owner and
or the financiers such as banks against financial
loss arising as a result of physical loss, damage,
expenses incurred or liability from the
transportation process.
Loss can arise from the perils of the sea such as
rough weather, sinking, stranding and collision of
the ocean vessel and from fire explosion. Loss can
also arise from mishandling, theft, pilferage,
non-delivery at the ports or as a result of
overturning, collision of and or theft from overland
transports.
The insurance policy form and coverage are based on
the internationally accepted London wordings. For
general cargo by sea, three sets of clauses are
available known as the Institute Cargo Clauses 'A'
'B' and 'C', descending in scope of cover and a
brief summary is below:-
|
TYPE OF COVER |
INSTITUE CARGO
CLAUSES (A), (B) & (C) CLAUSE
SUMMARY CHART - RISK COVERED/EXCLUDED |
|
RISKS |
A Clauses
|
B Clauses
|
B Clauses
|
|
Fire or Explosion |
0
|
0
|
0
|
Vessel/Craft being
Stranded,
Grounded, sunk or capsized |
0
|
0
|
0
|
|
Overturning or
derailment of land conveyance |
0
|
0
|
0
|
Collision or contact
of vessel, craft or
Conveyance with external object other than
water |
0
|
0
|
0
|
|
Discharge of cargo at
a port of distress |
0
|
0
|
0
|
|
Earthquake, volcanic
eruption or lightning |
0
|
0
|
X
|
|
General Average
sacrifice |
0
|
0
|
0
|
|
Jettison |
0
|
0
|
0
|
|
Washing Overboard |
0
|
0
|
X
|
|
Entry of sea, lake or
river water into vessel, craft,Hold,
conveyance, container, liftvan or place of
Storage |
0
|
0
|
X
|
|
Total loss of any
package lost overboard or Dropped whilst
loading on to or unloading from Vessel or
craft |
0
|
0
|
X
|
|
General Average and
salvage charges, Sue & Labour charges |
0
|
0
|
0
|
|
Pirates, Thieves and
non-delivery |
0
|
X
|
X
|
|
Rough handling |
0
|
X
|
X
|
|
Contamination |
0
|
X
|
X
|
|
GENERAL EXCLUSION |
|
Willful misconduct of
the Assured |
X
|
X
|
X
|
|
Ordinary leakage, loss
in weight, wear and tear |
X
|
X
|
X
|
|
Insufficiency or
unsuitability of packing |
X
|
X
|
X
|
|
Inherent vice or
nature of the subject matter insured. |
X
|
X
|
X
|
|
Unseaworthiness of
vessel (when the Assured is Privy to it) |
X
|
X
|
X
|
|
Delay even though
caused by a risk insured against |
X
|
X
|
X
|
|
Insolvency on
financial default of carrier |
X
|
X
|
X
|
|
Deliberate damage or
destruction of the subject Matter insured. |
0
|
X
|
X
|
|
Use of nuclear weapons |
X
|
X
|
X
|
|
War & Strikes |
X
|
X
|
X
|
Key
0 -
Covered
X - Not
Covered |
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