A marine cargo insurance policy is a category of property insurance that provides protection to a property that is in transit. The losses to the property in transit can incur due to certain perils associated with transport by sea, by air, or inland waterways. Marine cargo insurance provides coverage to the goods and the means of transportation from damages caused due to weather issues, piracy, loading or unloading of cargoes, etc. This insurance mainly covers cargoes meant especially for international transportation and will cover the goods from the time they leave the warehouse of the seller until they reach the buyer’s warehouse.
Major benefits of marine cargo insurance
Some of the major benefits provided by marine cargo insurance are:
- Comprehensive all-risks coverage is available which includes infestation, rejection of customs, dishonesty of employees, damage caused due to improper packaging of goods, etc.
- Flexible coverage options are available for the policyholders.
- The covers provided with cargo insurance can be customized to suit the needs of the policyholder.
- Assistance on claim settlement and survey is available worldwide.
- Extensions can be made to the marine insurance policy to cover strikes, riots, or other perils of the sea.
Marine Cargo Insurance Policy Types
The types of Marine cargo insurance are described below:
- Specific Cargo policy: The specific cargo policy will provide cover against specific perils under the cargo, sent or received during the policy term.
- Open policy: The open policy will provide cover for cargoes within the policy period and also for the indefinite period until cancelled the policy, either by the insurance provider or the insured. Some insurance providers also include third-party liability coverage within this policy.
- Open cargo: The open cargo policy will cover all the marine cargoes of the particular client within a 12-month policy term. The voyage involved in this case can be either an import or an export.
Marine Cargo Insurance Coverages
The Marine Cargo Insurance mainly offers four types of covers i.e.
1. Institute Cargo Clause(C) i.e. ICC C
This is one of the most restrictive clauses of marine cargo insurance and only provides cover in case of specific cases such as:
- Fire or an explosion
- Derailment or the overturning of land conveyance
- Collision or the contact of vessel craft with any outside object
2. Institute Cargo Clause(B) i.e. ICC B
The Institute Cargo Clause (B) is almost similar to that of ICC C but with some additional covers such as:
- Natural calamities like earthquakes, lightning, or volcanic eruptions
- Total loss of any package lost along the process of loading or unloading
- Damages caused due to the entry of seawater into the vessel, craft, or conveyance
Additional Read: What is Constructive Total Loss in Marine Cargo Insurance?
3. Institute Cargo Clause(A) i.e. ICC A
The ICC A clause is a clause associated with unnamed perils. This clause offers the widest variety of coverage for cargoes. The premium for this insurance is also the highest as it provides extensive coverage. Mainly, ICC A will provide cover for all risks of loss or damage except for certain specific exclusions.
4. Institute Cargo Clause (Air)
Institute Cargo Clause (Air) provides cover for all risks of loss or damage that might occur to the insured except in certain scenarios like insolvency of owners, loss caused due to delay, ordinary leakage, willful misconduct, inherent vice, etc.
Business today is no longer restricted by borders and goods are being sent frequently by ships and other transport means across the world. It has become very crucial to protect goods and shipments from various mishaps and this is feasible through a marine cargo insurance policy.
About The Author
Simran
MBA Insurance and Risk
With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.
