Marine and Cargo Insurance

Marine Insurance provides coverage against physical damage or loss of goods during shipping whether by land, sea or air. Marine Insurance is necessary because of various laws that limit the liability of the carrier. So marine insurance is very essential to the traders/Industrialists etc.

Risk covered in Marine Insurance:

During Sea Voyage:

All Risks (ICC A)

      • Fire or Explosion
      • Stranding, Sinking
      • Overturning, Derailment of land conveyance
      • Collision
      • Discharge of cargo at the port of distress
      • General average sacrifice
      • Jettison or washing overboard
      • The entry of sea, lake or river water into the vessel, craft, hold conveyance container, lift van, or place of storage
      • Salvage charges
      • Earthquake, lightning
      • Total loss of package in loading or unloading
      • Theft
      • Pilferage
      • Non-delivery
      • Any other risks not excluded in the policy
    • Basic Risks (ICC B)
      • Fire or Explosion
      • Stranding, sinking
      • Overturning, derailment of land conveyance
      • Collision
      • Discharge of cargo at the port of distress
      • Earthquake, lightning
      • General average sacrifice
      • Jettison or washing overboard
      • The entry of sea, lake or river water into vessel craft
      • Total loss of package in loading unloading
    • Minimum coverage (ICC C)
      • Fire or explosion
      • Stranding, sinking
      • Overturning, derailment of land conveyance
      • Collision
      • Discharge of cargo at the port of distress
      • General average sacrifice
      • Jettison

Risk Excluded

    1. Willful misconduct of the insured
    2. Ordinary leakage, ordinary loss in weight of volume or ordinary wear and tear of cargo
    3. Insufficiency or unsuitability of packing or preparation of cargo
    4. Inherent vice or nature of the cargo
    5. Delay, even if the delay is caused by a risk insured against
    6. Insolvency of financial default of the owners, managers, characters or operators of the vessel
    7. Un-seaworthiness of vessel or craft and unfitness of vessel, craft, conveyance container of the lift van

Use of any weapon of war employing atomic or nuclear fission. In addition, the following are excluded:

    1. War Risks
    2. Strike risks(Including damage caused by terrorists)

It is, however normal to include war and strike Risks in insurance of ocean shipments. For this, the Institute war clauses(Cargo) and the institute strike clauses (Cargo) are used.

Road Risks:

  • All Risks (ITC A)
    • Fire
    • Lightning
    • Breakage of Bridges
    • Collision with or by carrying vehicle
    • Overturning of the carrying vehicle
    • Derailment or accidents of like nature to carrying railway wagon/vehicle
    • Theft
    • Pilferage
    • Non-delivery
    • Any other risks not specially excluded in the policy
    • The risks of SRCC (Strike Riot and Civil Commotion and Terrorism can also be covered on payment of extra premium
  • Basic Cover (ITC B)
    • Fire
    • Lightning
    • Breakage of Bridges
    • Collision with or by carrying vehicle
    • Overturning of the carrying vehicle
    • Derailment or accidents of like nature to carrying railway wagon/vehicle
  • Minimum Cover (ITC C)
    • Fire
    • Lightning

 

Add Comment

Your email address will not be published. Required fields are marked *