The Marine Cargo Insurance is a transit risk policy covering movement of Cargo by sea, air, rail, road  from a specified point of loading to a specified point of discharge. 

The cover runs from the time goods leave the warehouse of consignor/seller at the port of loading (seaport/airport) that is named in the policy and continue during the ordinary course of the voyage until they make it to the buyer/consignee’s warehouse or port of discharge (seaport/ airport). 

In cases where the purchase of the goods is facilitated by a financial institution, Marine Insurance (Cargo) is a mandatory requirement.

Scopes of Cover

There are various kinds of covers available for overseas transit. The following three kinds of cover are the most common.

Institute Cargo Clauses (C)

The risks covered under these clauses include loss or damage to the insured property due to or caused by:

  Fire or Explosion.

♠️  Stranding, Grounding, or Sinking of the Vessel or Craft.

♠️  Overturning or Derailment of Land Conveyance.

♠️  Collision or Contact of Vessel, Craft or Conveyance with any external object other than water.

♠️  Discharge of cargo at a port of distress.

♠️  General Average Sacrifice and Salvage Charges

♠️  Jettisoning

Institute Cargo Clauses (B)

All losses covered under Institute Cargo Clauses (C) are covered under this clause. In addition,  Loss or Damage to the Insured property due to or caused by the following perils are also covered:

♠️  Earthquake, Volcanic Eruption or Lightning.

♠️  Sea Water or Fresh Water Damage.

♠️  Loss or Damage by Washing Overboard.

♠️  Total loss of any package lost overboard or dropped whilst loading or unloading

Institute Cargo Clauses (A)

This is the most comprehensive cover for Marine Insurance. It covers all risks of loss or damage to insured cargo except those specifically excluded under the general exclusions clauses. The General Exclusions applicable to all the Institute Cargo Clauses, briefly summarised are loss, damage or expense:

♠️  Attributed to willful conduct of the assured.

♠️  Due to ordinary Leakage, Breakage, Wear and Tear and Loss in Weight or Volume.

♠️  Due to unsuitability or insufficiency of packing.

♠️  Caused by inherent vice or nature of the property insured.

♠️  Proximately caused by delay, even though the delay be caused by a risk insured against.

♠️  Due to insolvency or financial default of the Owners, Managers, Charterers or operators of the vessel.

♠️  Due to Nuclear Perils.

♠️  Arising from unseaworthiness or unfitness of Vessel or Craft used for the carriage of the property insured.

♠️  Due to or arising from War Perils.

♠️  Due to or arising from Strike Perils.

♠️  Caused by Capture, Seizure, Arrest, Restraint or Detainment (Piracy excepted) and the consequences thereof or any attempt threat.

♠️  Caused by terrorist or any person acting from a political motive.

♠️  Due to deliberate damage or destruction of the subject-matter insured by the wrongful act of any person or persons. (This exclusion does not apply to Institute Cargo Clauses (A).