Marine Cargo Insurance

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 Marine Insurance 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.

Other conditions (Land transit)
· Land and Air Transit Clause Cover A, Applied specifically for coverage during land and air transportation, against fire, flood, accident to the carriage vehicle or force landing, overturning, sunk during the ferry crossings.
 · Land and Air Transit Clause Cover B, Covers all risks of loss of or damage during land and air transportation except as specifically excluded.

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

Extension Coverage - Institute Strike Clause

Provide coverage for loss or damage to cargo caused by strikes, locked-out workmen, persons taking part in labor disturbances, riot, civil commotion, terrorism and persons acting from political motive, general average and salvage charges.

· - Institute War Clause
Provide coverage for loss or damage to cargo insured caused by war, civil war, rebellion, hostile act, capture, seizure, arrest, derelict mines, torpedoes, bomb or other derelict weapons, general average and salvage charges, all due to war.es 1/1/82.