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Marine Cargo Insurance
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Marine Cargo Insurance
Cargo Insurance is an insurance which covers any loss of/or damage to subject matter insured during shipment or transportation by :
  • Marine transportation
  • Land transportation
  • Air transportation
Marine Cargo Insurance Conditions
There are three insurance condition that are mostly used amongst of many existing marine insurance conditions. These conditions are :
  • Institute Cargo Clauses "A" 1/1/82
  • Institute Cargo Clauses "B" 1/1/82
  • Institute Cargo Clauses "C" 1/1/82
Each of these condition provides different scope of cover, for instance, the Institute Cargo Clauses "A" 1/1/82 has the widest scope of cover, while Institute Cargo Clauses "B" 1/1/82 has less scope of cover. And Institute Cargo Clauses "C" 1/1/82 has the least scope of cover of these three.

Condition

Risk

A

B

C

Fire Explosion

Y

Y

Y

Sunk Stranded Grounded Burnt Capsized

Y

Y

Y

Collision

Y

Y

Y

Derailment Overturning

Y

Y

Y

Discharge of cargo (Port of Distress)

Y

Y

Y

Jettison

Y

Y

Y

General Average (Sacrifice)

Y

Y

Y

Earthquake Volcanic Eruption Lightning

Y

Y

N

Washing Over Board

Y

Y

N

Entry of Sea River Lake 

Y

Y

N

Total Loss Per Package (Loading Unloading)

Y

Y

N

Earthquake, volcanic eruption or lightening

Y

Y

N

Rain and/or Fresh Water Damage (RFWD)

Y

N

N

Sweat and Heating

Y

N

N

Chafing and Scratching

Y

N

N

Rats & Vermins

Y

N

N

Theft, Pilferage and/or Non-Delivery (TPND)

Y

N

N

Breakage, Bending and/or Denting (BBD)

Y

N

N

Leakage and/or Shortage

Y

N

N

Contamination

Y

N

N

Malicious Act

Y

N

N

Piracy

Y

N

N

Ordinary leakage, loss of weight/volume, wear and tear

N

N

N

Delay, loss of market or consequential loss

N

N

N

Insufficiency or unsuitability of packing or preparation

N

N

N

Rusting, Oxidation, Discoloration, Contamination

N

N

N

Extended Coverage
Just like any other insurance, Cargo Insurance conditions can be extended subject to your requirements, below are some examples of the extension cover :
  • Institute War Clauses 1/1/82
  • Institute Strikes Clauses 1/1/82
  • Note: All the description above are virtually very general, information in details shall be determined by terms and conditions mentioned in the policy.
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