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 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.
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.
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.
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.
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.
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.
