Marine Insurance

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Marine cargo insurance is used to cover the terms of agreement and responsibilities of the transaction. The common Terms of Agreement are as follows:

  • • Free alongside ship (FAS) The vendor is responsible for the goods up to delivery at the quay alongside the vessel. The buyer then assumes ownership.
  • • Free on Board (FOB) The vendor is responsible for the goods until they are loaded on board the vessel or aircraft at which time the buyer assumes ownership.
  • • Cost & Freight (C& F) The vendor is responsible for the goods until they are loaded on board the vessel or aircraft at which time the buyer assumes ownership.
  • • Cost Insurance & Freight (CIF) The vendor provides the goods, transport and insurance as a package and arranges the insurance for the whole transit on a "warehouse to warehouse" basis

Marine Insurance can be purchased either as a:

1. Single Policy

A policy or certificate is issued for just one shipment or for just one transaction.

2. Open Cover Policy

A client who has regular shipments to pre-defined locations,maximum value per shipment and contents would use this policy to cover his cargo there by reducing the turn around time for coverage.

The contract could either be one of the following:

1. Institute Cargo Clauses 'A' (ICC 'A')

This cover is the most extensive cover available in Marine Cargo Insurance. It covers both total and partial loss sustained by the goods. The general exclusions are:

  • Willful misconduct of the insured
  • Ordinary leakage/loss of weight
  • Wear and tear
  • Inadequate packing
  • Inherent vice
  • Delay
  • Insolvency or financial default of carriers
  • War and strikes and nuclear risks.

2. Institute Cargo Clauses 'B' (ICC 'B')

With the same exclusions as IIC 'A', ICC 'B' has a cover limited to the following:

  1. Fire & explosion
  2. Loss following a major accident to the ocean carrying vessel or overturning or derailment of the land conveyance
  3. Discharge of cargo at a port of distress
  4. Earthquake, volcanic eruption or lightning
  5. General average sacrifice
  6. Jettison or washing overboard
  7. Sea, Lake or river water damage (N.B. rain water is not included)
  8. Total loss of any package lost overboard or dropped whilst loading or unloading
  9. General average or salvage charges

This cover is used mostly when the risk is considered "sub-standard". Optional benefits would be Theft & Non- Delivery.

3. Institute Cargo Clauses 'C' (ICC 'C')

The minimum cover available under Marine Cargo Insurance and is used for bulk goods which are not readily acceptable to damage e.g. scrap iron or heavy construction machinery which is often carried on deck. It covers loss or damage from any of the major perils except:

  • Earthquake, volcanic eruption or lightning
  • Sea, Lake or river water damage (N.B. rain water is not included)
  • Total loss of any package lost overboard or dropped whilst loading or unloading.

Additional Covers (optional):

  • War and Strike Risks
  • Storage Risk Protection