What is Marine Cargo Insurance and who requires it?
Marine Cargo Insurance is essentially ‘transportation
insurance’, since its scope covers all movements of
cargo by all modes & means of transport, where there is
a contract of carriage.
Marine Insurance is required by Importers, Exporters or by
anyone who stands to lose financially if the goods are damaged
or lost.
2)
What are the risks covered by our products?
Our products i.e. individual Policies, Open Covers and Open
Policies cover risks related to transportation by sea, air
and land.
Individual Cargo Policies
•
To insure cargo against
risks involved in a specific voyage
Marine Cargo Open Covers
•
Contract to provide automatic
insurance protection, with premiums charged as declarations
of shipments/dispatches are made
•
Always open until cancelled by either
party to the contract
•
Certificates are issued for individual
shipments/dispatches
Marine Cargo Open Policies (Annual Policies)
•
Contract to provide automatic
insurance protection for a specific period of time (usually
one year).
•
Premium is by deposit (based on an estimate),
and adjustable on declaration of actual values of shipments/dispatches
•
Best suited for Imports
3)
What are the types
of covers available?
•
There are three internationally
recognized clauses under which cover is usually granted.
They are known as Institute Cargo Clauses (A), (B),
and (C)
Institute Cargo Clauses (A) This is the widest possible cover which covers ‘all
risks’ of loss of or damage to the subject matter (i.e.
Cargo), except for a few standard exclusions.
Institute Cargo Clauses (C)
This is the most restricted clause and covers only: loss or
damage reasonably attributable to;
•
Fire or explosion
•
Vessel or craft being stranded grounded
sunk or capsized
•
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
and loss or damage caused
by;
•
General average sacrifice
•
Jettison
Institute Cargo Clauses (B) This cover is similar to ‘C’ Clause, but in addition
covers:
•
Earthquake, volcanic eruption
or lightning
•
Washing overboard
•
Entry of sea, lake or river water into
vessel, craft, hold, conveyance, container, liftvan,
or place of storage
•
Total loss of any package lost overboard
or dropped whilst loading on to, or unloading from,
vessel or craft
General Exclusions
•
Willful misconduct
of Insured
•
Ordinary leakage, ordinary loss in weight
or volume, or ordinary wear and tear of the subject
matter
•
Insufficiency or unsuitability of packing
or preparation
•
Inherent vice or nature of the subject
matter
•
Delay
•
Insolvency or financial default of the
owners managers charterers or operators of the vessel
•
Nuclear Weapons etc
Other Exclusions
•
Unseaworthiness of vessel or craft
•
Unfitness of vessel, craft, conveyance,
container or liftvan
•
War etc.
•
Strikes etc
4)
What are the sales
terms?
•
FOB - Free on Board
(The seller fulfils his obligation to deliver when the
goods have passed over the ship’s rail at the
named port of shipment)
•
C & F (now
CFR) - Cost and Freight
(The seller’s obligation is similar to that under
CFR, but in addition he has to purchase Marine Insurance
against buyer’s risk)
•
C I F -
Cost Insurance & Freight
(The seller has the same obligation under CFR but which
the addition that he has to purchase Marine Insurance
against the buyers risk)
5)
What is the procedure to make a claim if there is a loss of or damage to cargo?
In the event of loss or damage which may involve a
claim under Marine Insurance, immediate notice of such loss
or damage must be given to the Insurance Company/Surveyors
named in the policy/certificate.
The Insurance Company/Surveyors named in the policy/certificate
will arrange a Survey Report
6)
What are the documents required when making a claim?
To enable claims to be dealt with promptly, the Assured or
their Agents are advised to submit all available supporting
documents without delay, including when applicable:
•
Original Policy or Certificate
of Insurance.
•
Original or copy shipping invoices,
together with shipping specification and/or weight notes.
•
Original Bill of Lading and/or other
contract of carriage.
•
Survey Report or other documentary evidence
to show the extent of the loss or damage.
•
Landing account and weight notes at final
destination.
•
Short-landing Certificate.
•
Repair estimate.
•
Correspondence exchanged with the Carriers
and other parties regarding their liability for the
loss or damage.
