Does ICC (A) clauses cover cargo claims for delays due to COVID-19..??

Does ICC (A) clauses cover cargo claims for delays due to COVID-19..??

As we have all seen, COVID-19 is causing severe imbalances in world trade which is affecting everyone, whether it is an exporter, importer, shipping line, shipowner, freight forwarder, trucker, or a spaza shop around the corner..

While ships are moving, ports are discharging and loading containers, nothing is working at a 100% capacity in most of the countries around the world as yet..

Ships are facing port congestion resulting in blank sailings, containers are stuck in storage at ports, terminals, and depots around the world for later deliveries creating longer delays than anticipated and also causing yard space congestion..

Majority of global trade is still on paper-based documentation and with many banks around the world still unable to function fully, important documents such as bills of lading are not being negotiated and released to the customer which means goods could be stuck at various points.

Of course, a lot of the shipping lines have and are doing their best in providing some out of the box solutions such as storage in transit, release of cargo on LOI without bill of lading etc, there are still issues relating to timely releases..

All these issues have one big repercussion for trade and that is “cargo claims”..

In general, for all sea freight shipments, it is in the interest of the parties involved in the trade that the cargo is covered by a marine cargo insurance policy..

Marine cargo policies cover goods in transit and covers the insured against losses and/or damages due to external causes during transportation.. For the policy to be active, the goods must actually be in transit, having left the origin on its way to the final destination..

Institute Cargo Clauses (ICC) is a set of 3 clauses (A, B & C) commonly included in a marine insurance policy.. Each of these clauses vary in their level of coverage and items covered and naturally the insurance premiums are proportionate to the cover chosen..

• Institute Cargo Clause A: is considered to have the widest marine insurance coverage with the highest premium ;
• Institute Cargo Clause B: is a slightly restrictive cover with a moderate premium ;
• Institute Cargo Clause C: is the most restrictive in terms of its coverage and comes with a low premium

Bearing in mind the wide coverage of ICC (A), there was a question raised on this site 

“Does ICC (A) clauses cover cargo claims due to COVID-19 delays..??” 

Traders who deal in time-sensitive cargoes should have had special clauses inserted in their policy. However, traders, in general, would have left the clauses as is with no changes as the COVID-19 took the world by surprise.

When looking into any claim in terms of a policy, it is necessary to read the wording of the policy taking into account the simple everyday meaning of the words.  It is of no use to try to put some magical words or interpretations into the words.

ICC (A) cargo claims COVID-19

Let us look at a simple claim to see how its settlement will be affected by the Covid-19 pandemic.

As mentioned above ICC (A) clauses is considered to be the highest marine insurance cover for cargo because all risks are covered. But remember, “All risks” are not really “All Risks” because for a claim to be considered, there must what is called a fortuity which means “an actual happening or occurrence”.

With the Covid-19 virus, there has not been any fortuity in that the cargo has been delayed albeit beyond the control of the insured.

ICC (A) states that the policy covers all risks of loss or damage to the subject-matter insured except as excluded in terms of clauses 4, 5, 6 and 7.

To take the claim to the next stage, let us look at the exclusions and Clause 4.5 in particular, which states

4.5 loss damage or expense caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)

The only expenses payable are those falling under clause 2 which refers to general average and salvage charges.

The next stage is to look at the duration, or, transit clause.

As per the Transit Clause (Clause 8 of ICC (A) 2009),

this insurance attaches from the time the subject-matter insured is first moved in the warehouse or at the place of storage (at the place named in the contract of insurance) for the purpose of the immediate loading into or onto the carrying vehicle or other conveyance for the commencement of transit, continues during the ordinary course of transit and terminates

8.1.1 on completion of unloading from the carrying vehicle or other conveyance in or at the final warehouse or place of storage at the destination named in the contract of insurance,

8.1.2 on completion of unloading from the carrying vehicle or other conveyance in or at any other warehouse or place of storage, whether prior to or at the destination named in the contract of insurance, which the Assured or their employees elect to use either for storage other than in the ordinary course of transit or for allocation or distribution, or

8.1.3 when the Assured or their employees elect to use any carrying vehicle or other conveyance or any container for storage other than in the ordinary course of transit or

8.1.4 on the expiry of 60 days after completion of discharge overside of the subject-matter insured from the oversea vessel at the final port of discharge, whichever shall first occur.

Meaning, as per 8.1.4 above, the insurance cover shall terminate after 60 days of the goods being discharged at the place mentioned in the insurance cover. So if the delays due to COVID-19 is more than 60 days from discharge, the insurance cover lapses.

Clause 8.3 indicates that 

The insurance will continue to be valid in accordance with clauses 8.1.1 to 8.1.4 and the stipulations of clause 9 when the delay is out of the Assured's control. 

These provisions pertain to the period when the cargo remains under the care and control of the ocean-going ship. The delay attributed to the virus will most likely occur after leaving the seagoing vessel. 

Clause 9 pertains to the carriage contract and will terminate once more unless timely notification is provided to the insurers and a request for continuation is made. This timeframe is restricted to 60 days following arrival at the port or location where the extension is sought. 

Considering all the aforementioned points, it is clear that any loss would be completely excluded due to delay, even if the policy was extended as allowed by the Assured. 

Consequently, since delay is not covered, there would be no claim under the policy regarding delays due to COVID-19. 

Video :

INSTITUTE WAR CLAUSES (CARGO)

INSTITUTE WAR CLAUSES (CARGO)
RISKS COVERED
1. - Risks Clause
1 This insurance covers, except as provided in Clauses 3 and 4 below, loss of or damage to the subject-matter insured caused by
1.1 war, civil war, revolution, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power
1.2 capture seizure arrest restraint or detainment, arising from risks covered under 1.1 above, and the consequences thereof or any attempt thereat
1.3 derelict mines torpedoes bombs or other derelict weapons of war.
2. - General Average Clause
2 This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from a risk covered under these clauses.
EXCLUSIONS
3. - General Exclusions Clause
3 In no case shall this insurance cover
3.1 loss damage or expense attributable to wilful misconduct of the Assured
3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured 3.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured (for the purpose of this Clause
3.3 "packing" shall be deemed to include stowage in a container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by the Assured or their servants)
3.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured
3.5 loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)
3.6 loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel
3.7 any claim based upon loss of or frustration of the voyage or adventure
3.8 loss damage or expense arising from any hostile use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

4. - Unseaworthiness and Unfitness Exclusion Clause
4.1 In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject-matter insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein,
4.2 The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject-matter insured to destination, unless the Assured or their servants are privy to such unseaworthiness or unfitness.

COVID-19: The Impact on Marine Protection and Indemnity Coverage

 

COVID-19: The Impact on Marine Protection and Indemnity Coverage

Amid the tragic human impact of COVID-19 and governments' restrictions on travel and commerce, businesses are feeling the economic consequences of the pandemic.

COVID-19 has reshaped the marine sector's risk landscape, and raised questions about shipowners' protection and indemnity (P&I) coverage and how this may be triggered.

The rules of the International Group (IG) Clubs are very similar, so there should be little difference in the P&I coverage they provide. But COVID-19 has highlighted some discrepancies, particularly relating to quarantine.

Giving definitive answers on all aspects of cover is not possible, as many claims will be subject to Club boards' discretion. This will leave many shipowners in a difficult position, with one Club possibly covering a risk that is rejected by another.

For this commentary, we have referenced the rules of the UK Club, although we strongly recommend that you check the rules of your specific Club(s) when considering any of the issues referenced below[note 1].

As an "infectious disease," COVID-19 is most likely to trigger claims under the following aspects of cover:

• Liability to persons other than seamen (including passengers).
• Illness and death of seamen.
• Repatriation and substitute expenses.
• Loss of or damage to the effects of seamen and other persons on board.
• Diversion expenses.
• Quarantine expenses.
• Fines.
• Cargo-related claims.

There may also be claims that give rise to enquiry expenses, "expenses incidental to the operation of ships," sue and labor costs, and expenses incurred “at the direction of” the Club. Some of these claims will, by their very nature, be entirely discretionary.

It is worth considering some specific examples:

Liability to Persons Other Than Seamen

Liability to pay damages or compensation to persons other than seamen owing to COVID-19 seems most likely to arise in respect of passengers, although cover will also exist where a shipowner is deemed to have a liability to, say, shore workers (such as stevedores), state personnel, and third-party surveyors attending the ship.

Passenger risk has received much media coverage and several Clubs are handling significant claims. Liability to passengers covers illness and death claims, and also extends to damages and compensation to passengers on board (our emphasis) "as a consequence of a casualty to that ship." A casualty is defined in the UK Club rules, inter alia, as "a threat to the life, health or safety of passengers in general." A COVID-19 outbreak clearly falls under that definition and would therefore, in our opinion, fall under Club cover. Cover can also include "the cost of forwarding passengers to destination or return to port of embarkation" and "maintenance of passengers ashore."

Illness and Death of Seamen

Liability to seamen again has illness or death triggers, and is likely to be defined under a contract of employment, although liability could additionally arise in tort. Cover for seamen should also extend to repatriation and substitution expenses arising from a statutory obligation, to which COVID-19 could clearly give rise. Claims for mental injury might also arise as a result of an outbreak of COVID-19 — especially after an extended period of quarantine (this applies equally to passengers, seamen, and "others").

Loss of or Damage to the Effects of Seamen and Other Persons on Board

Liability to pay compensation for the loss or damage to the "effects of seamen or others" could result from quarantine and disinfection — although these costs may equally be recoverable under the quarantine rule itself (see below).

Diversion Expenses

Diversion expenses (like quarantine expenses) do not require a liability on the part of the shipowner to trigger cover. These are covered where they represent the net loss to the member above what would otherwise have been incurred in respect of fuel, insurance, wages, and so on, and where they are incurred "solely for the purpose of securing treatment for an injured or sick person..." Some vessels (mainly passenger) appear to have been diverted for this purpose, but it could equally happen with cargo vessels.

Quarantine Expenses

How cover for quarantine expenses is triggered varies between the Clubs, with the UK Club covering "additional expenses incurred...as a direct consequence of an outbreak of infectious disease...including quarantine and disinfection expenses," without any requirement for a formal quarantine order. Other Clubs' rules, however, require one. In practice, this should not be a problem, as it seems unlikely a ship would be quarantined due to COVID-19 without the close attention of a government authority. As mentioned above, the disposal of crew or passenger effects could potentially be a recoverable cost under the quarantine rule.

Fines

Shipowners could be subject to fines because of COVID-19 — for example, for breaches of the Maritime Labour Convention regulations on crew changes, or allegations of misdeclarations about the true health of all the crew/passengers on board. Except in a limited number of specified circumstances, P&I cover for fines is discretionary, so careful examination of the rules and circumstances will be necessary in each case.

For most heads of claim, P&I cover requires that the shipowner has a legal liability to pay a claim — quarantine being an exception. All Clubs will therefore expect shipowners to preserve all potential defenses, both as regards liability and quantum, and keep accurate records of expenses incurred and their decision-making processes. In respect of illness and death claims, the Clubs have a wealth of experience from which to assess whether it is best to defend or settle a claim and, if settling, how much to pay. It is therefore important always to follow their advice.

Cargo-Related Claims

COVID-19 is causing severe imbalances in world trade and shipowners (especially in the liner trades) are increasingly facing port congestion, requiring containerized cargos to be offloaded short of their ultimately intended port of delivery and stored pending delivery at a later date. Although this is a normal feature of the container trades, much-longer-than-usual delays are anticipated, making it more difficult to assess what constitutes reasonable dispatch.

This may result in a technical deviation under the contract of carriage, the potential loss of Hague-Visby (or similar) defenses, and the risk of a breach of Club cover. With banks physically closed in more than a third of the world, there is also the problem of Bills of Lading not being processed by the banking system, resulting in pressure on shipowners to release cargo without production of the Bill of Lading. Any resultant claims will generally only be covered by the Clubs at the discretion of their boards of directors.

Finally, while it is inevitable that some of the extra expenditure falling on shipowners is simply the enhanced cost of operating vessels (albeit in these most unusual circumstances), a considerable amount of additional expense will be incurred in order to mitigate claims that would otherwise fall under P&I Club cover. In these unprecedented times, we believe strongly it is incumbent on the P&I Clubs to do all they can to exercise their discretion in favor of their members.

Navigating Uncertainty

So how can a shipowner best cope in a sea of uncertainty?

The Clubs have built a reputation for providing quick and clear advice and, in all the situations described above, they should be consulted as to the best course of action and involved as much as possible in the decision-making process. This is especially true where potential claims may be at the board’s discretion. Even if a Club cannot say what will and what will not be covered, it can advise on the best reasonable course of action and highlight any actions that might risk prejudicing a claim.

The IG has created a COVID-19 sub-committee to consider the issues arising. 

COVID-19: The Impact on Marine Protection and Indemnity Coverage Video :

INSTITUTE CARGO - STRIKES CLAUSES

INSTITUTE CARGO - STRIKES CLAUSES


RISKS COVERED
1. - Risks Clause   

1 This insurance covers, except as provided in Clauses 3 and 4 below, loss of or damage to the subject-matter insured caused by

1.1 strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions

1.2 any terrorist or any person acting from a political motive.
2. - General Average Clause   

2 This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from a risk covered under these clauses.

EXCLUSIONS
3. - General Exclusions Clause   

3 In no case shall this insurance cover

3.1 loss damage or expense attributable to wilful misconduct of the Assured

3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured

3.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured (for the purpose of this Clause 3.3 "packing" shall be deemed to include stowage in a container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by the Assured or their servants)

3.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured

3.5 loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)

3.6 loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel

3.7 loss damage or expense arising from the absence shortage or withholding of labour of any description whatsoever resulting from any strike, lockout, labour disturbance, riot or civil commotion

3.8 any claim based upon loss of or frustration of the voyage or adventure

3.9 loss damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter

3.10 loss damage or expense caused by war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power.
4. - Unseaworthiness and Unfitness Exclusion Clause   

4.1 In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject-matter insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein.

4.2 The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject-matter insured to destination, unless the Assured or their servants are privy to such unseaworthiness or unfitness.

Marine Cargo Insurance Practice

Marine Cargo Insurance Practice

The Marine Insurance Act includes, as a schedule, a standard policy (known as the "SG form"), which parties were at liberty to use if they wished. Because each term in the policy had been tested through at least two centuries of judicial precedent, the policy was extremely thorough. However, it was also expressed in rather archaic terms. In 1991, the London market produced a new standard policy wording known as the MAR 91 form and using the Institute Clauses. The MAR form is simply a general statement of insurance; the Institute Clauses are used to set out the detail of the insurance cover. In practice, the policy document usually consists of the MAR form used as a cover, with the Clauses stapled to the inside. Typically each clause will be stamped, with the stamp overlapping both onto the inside cover and to other clauses; this practice is used to avoid the substitution or removal of clauses.

Because marine insurance is typically underwritten on a subscription basis, the MAR form begins: We, the Underwriters, agree to bind ourselves each for his own part and not one for another [...]. In legal terms, liability under the policy is several and not joint, i.e., the underwriters are all liable together, but only for their share or proportion of the risk. If one underwriter should default, the remainder are not liable to pick his share of the claim.

Typically, marine insurance is split between the vessels and the cargo. Insurance of the vessels is generally known as "Hull and Machinery" (H&M). A more restricted form of cover is "Total Loss Only" (TLO), generally used as a reinsurance, which only covers the total loss of the vessel and not any partial loss.

Cover may be on either a "voyage" or "time" basis. The "voyage" basis covers transit between the ports set out in the policy; the "time" basis covers a period of time, typically one year, and is more common.

Origins of formal marine insurance

Origins of formal marine insurance

Maritime insurance was the earliest well-developed kind of insurance, with origins in the Greek and Roman maritime loan. Separate marine insurance contracts were developed in Genoa and other Italian cities in the fourteenth century and spread to northern Europe. Premiums varied with intuitive estimates of the variable risk from seasons and pirates.

The modern origins of marine insurance law in English law were in the law merchant, with the establishment in England in 1601 of a specialized chamber of assurance separate from the other Courts. Lord Mansfield, Lord Chief Justice in the mid-eighteenth century, began the merging of law merchant and common law principles. The establishment of Lloyd's of London, competitor insurance companies, a developing infrastructure of specialists (such as shipbrokers, admiralty lawyers, bankers, surveyors, loss adjusters, general average adjusters, et al), and the growth of the British Empire gave English law a prominence in this area which it largely maintains and forms the basis of almost all modern practice. The growth of the London insurance market led to the standardization of policies and judicial precedent further developed marine insurance law. In 1906 the Marine Insurance Act was passed which codified the previous common law; it is both an extremely thorough and concise piece of work. Although the title of the Act refers to marine insurance, the general principles have been applied to all non-life insurance.

In the 19th century, Lloyd's and the Institute of London Underwriters (a grouping of London company insurers) developed between them standardized clauses for the use of marine insurance, and these have been maintained since. These are known as the Institute Clauses because the Institute covered the cost of their publication.

Within the overall guidance of the Marine Insurance Act and the Institute Clauses parties retain a considerable freedom to contract between themselves.

Marine insurance is the oldest type of insurance. Out of it grew non-marine insurance and reinsurance. It traditionally formed the majority of business underwritten at Lloyd's. Nowadays, Marine insurance is often grouped with Aviation and Transit (cargo) risks, and in this form is known by the acronym "MAT"..

Institute Cargo Clauses "C"

Institute Cargo Clauses "C"

Cover loss of or damage to the subject matter insured, "reasonably attributable to:
" 1. Fire or explosion.
2. Vessel of craft being stranded, grounded, sunk or capsized.
3. Overturning or derailment of land conveyance.
4. Collision or contact of vessel, craft or conveyance with any external object other than water.
5. Discharge of cargo at a port of distress.
The insurance also covers loss or of damage to the subject matter insured caused by:
1. General average sacrifice.
2. Jettison. To sum up, the "C" clauses provide major casualty coverage during the land, air or sea transit.

HISTORY OF MARINE INSURANCE

HISTORY OF MARINE INSURANCE 

Contrary to popular belief, Lloyds' of London was not the first group of people to offer insurance for maritime commerce. The first form of marine insurance dates back to the year 3000 BC when Chinese merchants dispersed their shipments amongst several vessels so as to abridge the possibility of damage to the product(s). The earliest account of insurance came in the form of bottomry, a monetary payment that protects traders from debt if merchandise is lost or damaged. Another form of early insurance was the general average. During cargo shipments in 916 BC, a merchant would accompany his cargo to see that it was not jettisoned, or voluntarily thrown overboard by the crewmen in times of a storm or sinkage. To guard against this mutual interest of safety and quarreling amongst merchants, the Rhodians initiated the general average, which ideally meant that a person would be compensated through pro rata contributions of other merchants if their goods were jettisoned during shipment.

From the 11th century to 18th century, a few additional breakthroughs occurred in marine insurance. In 1132, the Danish began to reimburse those who experienced loss at sea. In 1255, insurance premiums were used for the first time as the Merchant State of Venice pooled these premiums to indemnify loss due to piratry, spoilage, or pillage. The first marine insurance policy was introduced in 1384 in an attempt to cover bales of fabric traveling to Savona from Pisa, Italy. Within the next century, merchants from Lombard began the first insurance practice in London. Finally, in 1688, Lloyd's of London, named after Edward Lloyd, began the risky business of insurance underwriting and have grown to become the largest marine insurance underwriters in the world. The Marine Insurance Act of 1906 was then proposed and initiated in an attempt to clarify and set forth the regualtions and policy variables associated with marine insurance agreements.

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.

Single Marine Cargo Insurance

Single Marine Cargo Insurance

Single marine cargo insurance is for ‘one-off’ insurance cover for import or export shipments, except home removals.

Our Single Marine Cargo has a broad, market-leading and competitive cover incorporating internationally recognised Institute Clauses with our own special conditions and additional clauses.

Cargo is insured for loss or damage during import, export including within the Australian leg of the journey.

Video:

Home Removals Insurance

Home Removals Insurance

This policy is suitable for corporate customers arranging staff transfers from Australia to selected destinations overseas.

We can help you take some of the stress away from your employees by providing one of the most comprehensive home removals insurance solutions.

You can cover your employee's household goods and personal effects while in transit and also while in storage - providing seamless protection for precious goods and personal effects.

Video:

ICC- "Institute Cargo Clauses War"

ICC-  "Institute Cargo Clauses War"
 INSTITUTE WAR CLAUSES (CARGO)

RISKS COVERED
1. - Risks Clause
1 This insurance covers, except as provided in Clauses 3 and 4 below, loss of or damage to the subject-matter insured caused by
1.1 war civil war revolution insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power
1.2 capture seizure arrest restraint or detainment, arising from risks covered under 1.1 above, and the consequences thereof or any attempt thereat
1.3 derelict mines torpedoes bombs or other derelict weapons of war.
2. - General Average Clause
2 This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from a risk covered under these clauses.

EXCLUSIONS
3. - General Exclusions Clause
3 In no case shall this insurance cover
3.1 loss damage or expense attributable to wilful misconduct of the Assured
3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured
3.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured (for the purpose of this Clause 3.3 "packing" shall be deemed to include stowage in a container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by the Assured or their servants)
3.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured
3.5 loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)
3.6 loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel
3.7 any claim based upon loss of or frustration of the voyage or adventure
3.8 loss damage or expense arising from any hostile use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.
4. - Unseaworthiness and Unfitness Exclusion Clause
4.1 In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject-matter insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein,
4.2 The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject-matter insured to destination, unless the Assured or their servants are privy to such unseaworthiness or unfitness.

DURATION
5. - Transit Clause
5.1 This insurance
5.1.1 attaches only as the subject-matter insured and as to any part as that part is loaded on an oversea vessel and
5.1.2 terminates, subject to 5.2 and 5.3 below, either as the subject-matter insured and as to any part as that part is discharged from an oversea vessel at the final port or place of discharge, or on expiry of 15 days counting from midnight of the day of arrival of the vessel at the final port or place of discharge, whichever shall first occur; nevertheless, subject to prompt notice to the Underwriters and to an additional premium, such insurance
5.1.3 reattaches when, without having discharged the subject-matter insured at the final port or place of discharge, the vessel sails from, and
5.1.4 terminates, subject to 5.2 and 5.3 below, either as the subject-matter insured and as to any part as that part is thereafter discharged from the vessel at the final (or substituted) port or place of discharge, or on expiry of 15 days counting from midnight of the day of re-arrival of the vessel at the final port or place of discharge or arrival of the vessel at a substituted port or place of discharge, whichever shall first occur.
5.2 If during the insured voyage the oversea vessel arrives at an intermediate port or place to discharge the subject-matter insured for on-carriage by oversea vessel or by aircraft, or the goods are discharged from the vessel at a port or place of refuge, then, subject to 5.3 below and to an additional premium if required, this insurance continues until the expiry of 15 days counting from midnight of the day of arrival of the vessel at such port or place, but thereafter reattaches as the subject-matter insured and as to any part as that part is loaded on an on-carrying oversea vessel or aircraft. During the period of 15 days the insurance remains in force after discharge only whilst the subject-matter insured and as to any part as that part is at such port or place. If the goods are on-carried within the said period of 15 days or if the insurance reattaches as provided in this Clause 5.2
5.2.1 where the on-carriage is by oversea vessel this insurance continues subject to the terms of these clauses, or
5.2.2 where the on-carriage is by aircraft, the current Institute War Clauses (Air Cargo) (excluding sendings by Post) shall be deemed to form part of this insurance and shall apply to the on-carriage by air.
5.3 If the voyage in the contract of carriage is terminated at a port or place other than the destination agreed therein, such port or place shall be deemed the final port of discharge and such insurance terminates in accordance with 5.1.2. If the subject-matter insured is subsequently reshipped to the original or any other destination, then provided notice is given to the Underwriters before the commencement of such further transit and subject to an additional premium, such insurance reattaches
5.3.1 in the case of the subject-matter insured having been discharged, as the subject-matter insured and as to any part as that part is loaded on the on-carrying vessel for the voyage;
5.3.2 in the case of the subject-matter not having been discharged, when the vessel sails from such deemed final port of discharge; thereafter such insurance terminates in accordance with 5.1.4.
5.4 The insurance against the risks of mines and derelict torpedoes, floating or submerged, is extended whilst the subject-matter insured or any part thereof is on craft whilst in transit to or from the oversea vessel, but in no case beyond the expiry of 60 days after discharge from the oversea vessel unless otherwise specially agreed by the Underwriters.
5.5 Subject to prompt notice to Underwriters, and to an additional premium if required, this insurance shall remain in force within the provisions of these Clauses during any deviation, or any variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers under the contract of affreightment. (For the purpose of Clause 5 "arrival" shall be deemed to mean that the vessel is anchored, moored or otherwise secured at a berth or place within the Harbour Authority area. If such a berth or place is not available, arrival is deemed to have occurred when the vessel first anchors, moors or otherwise secures either at or off the intended port or place of discharge "oversea vessel" shall be deemed to mean a vessel carrying the subjectmatter from one port or place to another where such voyage involves a sea passage by that vessel)
6. - Change of Voyage Clause
6 Where, after attachment of this insurance, the destination is changed by the Assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the Underwriters.
7. - Nullification
7 Anything contained in this contract which is inconsistent with Clauses 3.7,3.8 or 5 shall, to the extent of such inconsistency, be null and void.

Annual Marine Cargo Insurance

Annual Marine Cargo Insurance

This annual marine cargo product is for businesses with a turnover of over $20M pa. If your turnover is less than $20M pa, please see our Annual Marine Cargo Insurance page for small to medium business.

Annual marine cargo is subject to an annual premium based on the value of all shipments that the insured is responsible to insure. It is the simplest and most convenient way to cover the insured’s import and export risks.

Our Annual Marine Cargo policy has a broad, market-leading and competitive cover incorporating internationally recognised Institute Clauses with our own special conditions and additional clauses.

Cargo is insured for loss or damage during import, export and within Australia transit.

Stock and equipment at exhibitions or while on display can also be covered under the policy.

Video:

9 Clauses Covered in a Marine Insurance Policy

9 Clauses Covered in a Marine Insurance Policy

Some of the clauses covered in a marine insurance policy are given as under:

1. Valuation Clause:

The value of the subject is given in the clause. The value is agreed upon between both the parties. In case of loss or damage, the compensation will not exceed the amount given in the policy. If the value of the policy is to be decided at the time of loss, then this column is left blank.

2. ‘At and From’ Clause:

This clause refers to the time when risk commences. According to this clause the risk coverage starts when the ship is lying at the port of its departure and from the time it leaves the port. If insurance policy states the words, ‘at and from Madras’, it means the risk is covered when the ship is at Madras port and also when it leaves this port. This clause applies to Hull and Freight Insurance.

3. Sue and Labour Clause:

This clause enables the insured and the insurer in trying to save the subject- matter of insurance from any type of loss. If the insured spends some money in an attempt to save the goods from an impending loss, he can recover this amount from the insurer. The act of saving the subject-matter on minimising loss does not amount to deviation and the contract will not be void.

4. Warehouse to Warehouse Clause:

This clause covers the risk from the warehouse of the shipper or consignor to the warehouse at the destination. If the cargo is to be brought from the hinterland to the port, one marine policy will cover the risk at land and also at sea. The risk of taking goods to the port from sender’s warehouse to the arrival of goods at the receiver’s warehouse is covered. This clause saves the shipper from lot of troubles and he is sure of the safe arrival of the subject matter not only at the port but also at the warehouse.

5. Change of Voyage:

The details of the voyage are mentioned in the policy. The ports of departure and arrival are mentioned in the policy. The route to be followed by the ship is also given. In case of any deviation, the insurer will be relieved of his liability. If the ship changes its original route and follows same route later on, it will be taken as deviation. The insurer will not be liable to indemnify the loss if the original route is changed.

6. Touch and Stay Clause:

The ship should go and stay only at those ports which are mentioned in the policy. In case the ports are not mentioned, then the ship should take the customary route and stay at the port coming on that route only. If the ship goes to any other port, it will amount to deviation. The calling at ports must be for justifiable reasons.

7. Inchmaree Clause:

Under this clause any loss caused by the negligence of the master or a crew member is also covered. The damage caused to the cargo in loading and unloading operations is also recoverable. This clause was inserted after a famous case involving a ship named ‘Inchmare’ in 1857. This ship was damaged by the negligence of the crew and the insured could not get the claim for damages because it was not covered under the ‘perils of the sea’. Later on, underwriters included this clause in Marine Insurance.

8. Jettison:

It means throwing off certain cargo in order to lighten the load on a ship in emergency situations. It is necessitated to avoid a marine peril. The jettisoning must be done deliberately. The load to be thrown off is left to the master of the ship. The loss caused by jettisoning is covered under general clause.

9. Memorandum Clause:

Sometimes perishable goods are the subject-matter of insurance. The memorandum clause is used to save the insurer from paying small losses of perishable goods. Under this clause the insurer is not liable for partial losses. In certain commodities this loss is allowed up to 50%. However, if there is a general loss or the ship is stranded, the insurer will be liable to pay the loss.

Video :

All-Risk & Named Perils Cargo Insurance policy

All-Risk & Named Perils Cargo Insurance policy

All-Risk
An all-risk cargo insurance policy will cover any physical loss/damage from any external cause. An all-risk policy will list any exclusions that are not covered, which can be added on to the policy as an additional clause. TRG Marine™ only writes all-risk annual policies because of the many benefits.

Named Perils
Named perils policies will list what is covered under the policy. These policies will not cover theft!
Free of Particular Average (FPA) - Covers stranding, sinking, burning, collision, fire, lightning, crash.
With Average (WA) - This is not a common type of policy anymore. It covers stranding, sinking, burning, collisions, heavy weather, fire, lightning, crashing.

Shipment - by - Shipment (Through a carrier)
If you are insuring your goods shipment-by-shipment, you are most likely not covered for:

• Acts of God - e.g. heavy weather, earthquake, lightning, etc
• Acts of war - acts of strikes, riots or civil commotions
• Latent defects in the hull or machinery
• Criminal acts or negligence by the master or crew
• Unseaworthiness of the vessel

C+I+F
Seller owns the goods until they are loaded onto the vessel. Selling price includes all costs so far, plus the costs of the cargo insurance.

Video:

INSTITUTE FROZEN FOODS CLAUSES (CARGO)

INSTITUTE FROZEN FOODS CLAUSES (CARGO)
(excluding Frozen Meat)      24-Hour Breakdown Clause


RISKS COVERED
1. - Risks Clause
1 This insurance covers, except as provided in Clauses 4, 5, 6 & 7 below,
1.1  all risks of loss of or damage to the subject-matter insured, other than loss or damage resulting from any variation in temperature howsoever caused,
1.2  loss of or damage to the subject-matter insured resulting from any variation in temperature attributable to
1.2.1   breakdown of refrigerating machinery resulting in its stoppage for a period of not less than 24 consecutive hours
1.2.2   fire or explosion
1.2.3    vessel or craft being stranded grounded sunk or capsized
1.2.4    overturning or derailment of land conveyance
1.2.5    collision or contact of vessel craft or conveyance with any external object other than water
1.2.6    discharge of cargo at a port of distress.
2. - General Average Clause
2   This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clauses 4, 5, 6 and 7 or elsewhere in this insurance.
3. - "Both to Blame" Collision Clause
3.  This insurance is extended to indemnify the Assured against such proportion of liability under the contract of affreightment "Both to Blame Collision" Clause as is in respect of a loss recoverable hereunder.  In the event of any claim by shipowners under the said Clause the Assured agree to notify the Underwriters who shall have the right, at their own cost and expense, to defend the Assured against such claim.

EXCLUSIONS
4. - General Exclusions Clause
4    In no case shall this insurance cover
4.1  loss damage or expense attributable to wilful misconduct of the Assured
4.2  ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured
4.3     loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured (for the purpose of this Clause 4.3 "packing" shall be deemed to include stowage in a container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by the Assured or their servants)
4.4     loss damage or expense caused by inherent vice or nature of the subject-matter insured (except loss damage or expense resulting from variation in temperature specifically covered under Clause 1.2 above)
4.5     loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)
4.6     loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel
4.7     loss damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter
4.8     loss damage or expense arising from any failure of the Assured or their servants to take all reasonable precautions to ensure that the subject-matter insured is kept in refrigerated or, where appropriate, properly insulated and cooled space
4.9     any loss damage or expense otherwise recoverable hereunder unless prompt notice thereof is given to the Underwriters and, in any event, not later than 30 days after the termination of this insurance.
5. - Unseaworthiness and Unfitness Exclusion Clause
5.1    In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject-matter insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein,
5.2    The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject-matter insured to destination, unless the Assured or their servants are privy to such unseaworthiness or unfitness.
6. - War Exclusion Clause
6.    In no case shall this insurance cover loss damage or expense caused by
6.1     war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power
6.2     capture seizure arrest restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat
6.3    derelict mines torpedoes bombs or other derelict weapons of war.
7. - Strikes Exclusion Clause
7.   In no case shall this insurance cover loss damage or expense
7.1    caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions
7.2    resulting from strikes, lock-outs, labour disturbances, riots or civil commotions
7.3    caused by any terrorist or any person acting from a political motive.

DURATION
8. - Transit Clause
8.1   This insurance attaches from the time the goods are loaded into the conveyance at freezing works or cold store at the place named herein for the commencement of the transit, continues during the ordinary course of transit and terminates either
8.1.1   on delivery to the cold store or place of storage at the destination named herein,
8.1.2   on delivery to any other cold store or place of storage, whether prior to or at the destination named herein, which the Assured elect to use either
8.1.2.1  for storage other than in the ordinary course of transit or
8.1.2.2  for allocation or distribution, or
8.1.3   on the expiry of 5 days after discharge overside of the goods hereby insured from the oversea vessel at the final port of discharge,
whichever shall first occur.
8.2     If, after discharge overside from the oversea vessel at the final port of discharge, but prior to termination of this insurance, the goods are to be forwarded to a destination other than that to which they are insured hereunder, this insurance, whilst remaining subject to termination as provided for above, shall not extend beyond the commencement of transit to such other destination.
8.3     This insurance shall remain in force (subject to termination as provided for above and to the provisions of Clause 9 below) during delay beyond the control of the Assured, any deviation, forced discharge, reshipment or transhipment and during any variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers under the contract of affreightment.
9. - Termination of Contract of Carriage Clause
9. If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a port or place other than the destination named therein or the transit is otherwise terminated before delivery of the goods as provided for in Clause 8 above, then this insurance shall also terminate unless prompt notice is given to the Underwriters and continuation of cover is requested when the insurance shall remain in force, subject to an additional premium if required by the Underwriters, either
9.1     until the goods are sold and delivered at such port or place, or, unless otherwise specially agreed, until the expiry of 30 days after arrival of the goods hereby insured at such port or place, whichever shall first occur,
or
9.2     if the goods are forwarded within the said period of 30 days (or any agreed extension thereof) to the destination named herein or to any other destination, until terminated in accordance with the provisions of Clause 8 above.
10. - Change of Voyage Clause
10. Where, after attachment of this insurance, the destination is changed by the Assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the Underwriters.

INSTITUTE FROZEN MEAT CLAUSES (CARGO)

INSTITUTE FROZEN MEAT CLAUSES (CARGO)
(not suitable for chilled, cooled, or fresh meat)      (24-Hour Breakdown Clause)


RISKS COVERED
1. - Risks Clause
1 This insurance covers, except as provided in Clauses 4, 5, 6 & 7 below,
1.1  all risks of loss of or damage to the subject-matter insured, other than loss or damage resulting from any variation in temperature howsoever caused,
1.2  loss of or damage to the subject-matter insured resulting from any variation in temperature attributable to
1.2.1   breakdown of refrigerating machinery resulting in its stoppage for a period of not less than 24 consecutive hours
1.2.2   fire or explosion
1.2.3    vessel or craft being stranded grounded sunk or capsized
1.2.4    overturning or derailment of land conveyance
1.2.5    collision or contact of vessel craft or conveyance with any external object other than water
1.2.6    discharge of cargo at a port of distress.
2. - General Average Clause
2   This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clauses 4, 5, 6 and 7 or elsewhere in this insurance.
3. - "Both to Blame" Collision Clause
3.  This insurance is extended to indemnify the Assured against such proportion of liability under the contract of affreightment "Both to Blame Collision" Clause as is in respect of a loss recoverable hereunder.  In the event of any claim by shipowners under the said Clause the Assured agree to notify the Underwriters who shall have the right, at their own cost and expense, to defend the Assured against such claim.

EXCLUSIONS
4. - General Exclusions Clause
4    In no case shall this insurance cover
4.1  loss damage or expense attributable to wilful misconduct of the Assured
4.2  ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured
4.3     loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured (for the purpose of this Clause 4.3 "packing" shall be deemed to include stowage in a container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by the Assured or their servants)
4.4     loss damage or expense caused by inherent vice or nature of the subject-matter insured (except loss damage or expense resulting from variation in temperature specifically covered under Clause 1.2 above)
4.5     loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)
4.6     loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel, where, at the time of loading of the subject-matter insured on board the vessel; the Assured are aware, or in the ordinary course of business should be aware, that such insolvency or financial default could prevent the normal prosecution of the voyage
This exclusion shall not apply where the insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract
4.7     loss damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter
4.8     loss damage or expense on shore caused directly or indirectly by earthquake, volcanic eruption and/or fire resulting therefrom
4.9     loss damage or expense arising from any failure of the Assured or their servants to take all reasonable precautions to ensure that the subject-matter is kept in refrigerated or, where appropriate, properly insulated and cooled space.
5. - Unseaworthiness and Unfitness Exclusion Clause
5.1    In no case shall this insurance cover loss damage or expense arising from
5.1.1  unseaworthiness of vessel or craft, or unfitness of vessel or craft for the safe carriage of the subject-matter insured, where the Assured are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein,
5.1.2   unfitness of container, liftvan, or land conveyance for the safe carriage of the subject-matter insured, where loading therein is carried out prior to attachment of the insurance or by the Assured or their servants.
5.2   Where the insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract, exclusion 5.1.1 above shall not apply.
5.3    The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject-matter insured to destination.
6. - War Exclusion Clause
6.    In no case shall this insurance cover loss damage or expense caused by
6.1     war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power
6.2     capture seizure arrest restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat
6.3    derelict mines torpedoes bombs or other derelict weapons of war.
7. - Strikes Exclusion Clause
7.   In no case shall this insurance cover loss damage or expense
7.1    caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions
7.2    resulting from strikes, lock-outs, labour disturbances, riots or civil commotions
7.3    caused by any terrorist or any person acting from a political motive.

DURATION
8. - Transit Clause
8.1   This insurance attaches from the time
8.1.1 the goods pass into the cooling and/or freezing chambers of the works at the place named herein, provided that the period in such chambers prior to shipment on board the overseas vessel shall not exceed 60 days unless prompt notice be given to Underwriters and an additional premium paid for each further period of 30 days or part thereof
8.1.2 the goods are loaded into the conveyance at the freezing works or cold store at the place named herein for the commencement of the transit.
8.1.3 of loading of the goods into the overseas vessel
8.2 This insurance continues during the ordinary course of transit to and whilst in
8.2.1 cold store at the destination names herein
or
8.2.2 any other cold store which the Assured elect to use following the discharge of the goods from the overseas vessel at the port of discharge either
8.2.2.1 for storage other than in the ordinary course of transit, or
8.2.2.2 for allocation or distribution
8.3 This insurance terminates
8.3.1 for transit to a destination in the Continent of Europe (including Eire and the United Kingdom), USA, or Canada on the expiry of 30 days
8.3.2 for transit to a destination elsewhere on the expiry of 5 days
after final discharge of the goods from the overseas vessel at the port of discharge.
8.4 Any disposal of the goods other than by storage as in 8.2.1 or 8.2.2 above (except with the prior consent of the Underwriters) or any removal from cold store before the expiry of the relevant period in 8.3.1 or 8.3.2 above shall terminate the insurance on such goods.
8.5 If, after discharge overside from the overseas vessel at the final port of discharge, but prior to the termination of this insurance, the goods are to be forwarded to a destination other than that to which they are insured hereunder, this insurance, whilst remaining subject to termination as provided for above, shall not extend beyond the commencement of transit to such other destination.
8.6 This insurance shall remain in force (subject to termination as provided for above and to the provisions of Clause 9 below) during delay beyond the control of the Assured, any deviation, forced discharge, reshipment or transhipment and during any variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers under the contract of affreightment.
9. - Termination of Contract of Carriage Clause
9. If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a port or place other than the destination named therein or the transit is otherwise terminated before delivery of the goods as provided for in Clause 8 above, then this insurance shall also terminate unless prompt notice is given to the Underwriters and continuation of cover is requested when the insurance shall remain in force, subject to an additional premium if required by the Underwriters, either
9.1     until the goods are sold and delivered at such port or place, or, unless otherwise specially agreed, until the expiry of 30 days after arrival of the goods hereby insured at such port or place, whichever shall first occur,
or
9.2     if the goods are forwarded within the said period of 30 days (or any agreed extension thereof) to the destination named herein or to any other destination, until terminated in accordance with the provisions of Clause 8 above.
10. - Change of Voyage Clause
10. Where, after attachment of this insurance, the destination is changed by the Assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the Underwriters.

Marine Open Cover Insurance

Marine Open Cover Insurance

Marine open cover allows individual or periodic declaration of shipments (eg monthly, quarterly) with premium payable on each declaration. Open covers are not subject to renewal and remain in force, providing cover on declared shipments as and when they are made.

Our Marine Open Cover has a broad, market-leading and competitive cover incorporating internationally recognised Institute Clauses with our own special conditions and additional clauses.

Cargo is insured for loss or damage during import, export and within Australia transit.   Stock and equipment at exhibitions or while on display can also be covered under the policy.

Video:

MARINE CARGO INSURANCE Q U O T A T I O N

MARINE CARGO INSURANCE
Q U O T A T I O N

Type of Coverage   : Marine Cargo Insurance

The Insured : PT. ABC WORLDWIDE INDONESIA QQ CLIENTS for their respective rights and interests

Address                 : Plaza ABC, 22nd Floor Suite 123, Jl. Jend. Sudirman Kav. 25 Jakarta, Indonesia

Period of Insurance : Continuous Open Cover effective from date to be adviced subject to 30 (thirty) days Notice of Cancellation in writing by either party except for war risks, strikes and malicious damage where 7 (seven) days Notice of Cancellation shall apply.Such cancellation and/or alteration however shall not affect cover provided hereunder in respect of declarations or certificates or cover notes already issued.

Interest Insured      : Various General Cargo – Subject to declaration.

Packing Method     : Sufficient and suitable packing in accordance with the subject matter of insured (Container, Non Container and Truck)

Voyage                   : Inland & Inter Island Transit:

From & To              : the Insured’s warehouses anywhere in Indonesia Import - Export
From                       : country of origin worldwide including USA, European Union, Australia, New Zealand, etc
To                          : the Insured’s warehouses anywhere in Indonesia or vise versa Excluding shipment from/to war risk countries below:
Colombia, Georgia (abkhzia, south Ossetia), Afganistan, Angola, Burundi, Rusia (Chechnya, Dagestan, Ingushetia), Congo-Kinshasa (DR Congo), Congo-Bazzaville, Eritrea, Haiti, Iran, Iraq, Israel and the PA, Ivory Coast/West Africa, Liberia, Nepel, Nigeria, North Korea, Pakistan, Rwanda, Saudi Arabia, Somalia, Sri Lanka, Tajikistan, Ukraine, Yemen, Zimbabwe, Sudan, Chad, Bangladesh, Kenya, Algeria, Niger, India (Kashmir and Assam)

Vessel / Conveyance   : Sea Transit
Self propelled steel vessel, ocean going steel vessel subject to Institute Classification Clause 1/1/2001 and amended to include BKI Classes, with minimum Gross Tonnage (GRT) of 100 and not exceeding 25 years of age Excluding shipment by Wooden vessel, Tugboat, Barge and LCT
Land Conveyance (By Truck) covered by Tarpauline, Truck or Box must be in a road worthy condition as regulated in Indonesian traffic law

Limit of Liability       : USD 5,000,000.00 maximum value insured per shipment per vessel

Basis of Valuation    : As declared, but in the event of loss prior to declaration the basis of valuation to be Cost, Insurance and Freight (CIF) plus 10%

Terms & Conditions : Option 1
• Institute Cargo Clause “A” 1/1/82
• Institute War Clause (Cargo) 1/1/82
• Institute Strike Clauses (Cargo) 1/1/82
• Institute Theft, Pilferage and Non Delivery Clause 1/1/82
• Institute Replacement Clause 1/1/34
• Warehouse to warehouse
• Institute Classification Clause 1/1/2001 amended to include BKI Classification
• Institute Radioactive Contamination, Chemical, Biological, Bio Chemical and Electromagnetic Weapons Exclusion Clause 10/11/2003
• Institute Cyber Attack Exclusion Clause 10/11/03
• Institute War Cancellation Clause (Cargo)
• Electronic Date Exclusion Clause
• Excluding Rusting, Oxidation, Discoloration, Scratching, Denting, Bending, Contamination, Fungidation and Moulding
• Excluding mechanical, electrical & electronic derangement
Deductible / Excess : 0.50% of Total Sum Insured minimum US$ 250 any one accident in respect of other losses
Rate : 0.15%

Terms & Conditions : Option 2
• Institute Cargo Clause “B” 1/1/82
• Institute War Clause (Cargo) 1/1/82
• Institute Strike Clauses (Cargo) 1/1/82
• Institute Replacement Clause 1/1/34
• Warehouse to warehouse
• Institute Classification Clause 1/1/2001 amended to include BKI Classification
• Institute Radioactive Contamination, Chemical, Biological, Bio Chemical and Electromagnetic Weapons Exclusion Clause 10/11/2003
• Institute Cyber Attack Exclusion Clause 10/11/03
• Institute War Cancellation Clause (Cargo)
• Electronic Date Exclusion Clause
• Excluding Rusting, Oxidation, Discoloration, Scratching, Denting, Bending, Contamination, Fungidation and Moulding
• Excluding mechanical, electrical & electronic derangement
Deductible / Excess : 0.50% of Total Sum Insured minimum US$ 250 any one accident in respect of other losses
Rate : 0.12%

Terms & Conditions : Option 3
• Institute Cargo Clause “C” 1/1/82
• Institute War Clause (Cargo) 1/1/82
• Institute Strike Clauses (Cargo) 1/1/82
• Institute Replacement Clause 1/1/34
• Including Loading & Unloading Risks
• Warehouse to warehouse
• Institute Classification Clause 1/1/2001 amended to include BKI Classification
• Institute Radioactive Contamination, Chemical, Biological, Bio Chemical and Electromagnetic Weapons Exclusion Clause 10/11/2003
• Institute Cyber Attack Exclusion Clause 10/11/03
• Institute War Cancellation Clause (Cargo)
• Electronic Date Exclusion Clause
• Excluding Rusting, Oxidation, Discoloration, Scratching, Denting, Bending, Contamination, Fungidation and Moulding
• Excluding mechanical, electrical & electronic derangement
Deductible / Excess : Nil
Rate : 0.10%

Underwriters : PT. Asuransi XYZ Indonesia (Share: 100%)
Date of issue : 10 May 2009
marine-cargo-insurance-claims-procedure

Annual Marine Cargo Insurance PDF