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What is Marine Cargo Insurance and who requires it? |
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Marine Cargo Insurance is essentially 'transportation insurance', since its scope covers all movements of cargo by all modes & means of transport, where there is a contract of carriage.
Marine Insurance is required by Importers, Exporters or by anyone who stands to lose financially if the goods are damaged or lost. |
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| 2) |
What are the risks covered by our products? |
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Our products i.e. individual Policies, Open Covers and Open Policies cover risks related to transportation by sea, air and land. |
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Individual Cargo Policies |
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To insure cargo against risks involved in a specific voyage |
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Marine Cargo Open Covers |
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Contract to provide automatic insurance protection, with premiums charged as declarations of shipments/dispatches are made |
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Always open until cancelled by either party to the contract |
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Certificates are issued for individual shipments/dispatches |
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Marine Cargo Open Policies (Annual Policies) |
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Contract to provide automatic insurance protection for a specific period of time (usually one year). |
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Premium is by deposit (based on an estimate), and adjustable on declaration of actual values of shipments/dispatches |
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Best suited for Imports |
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| 3) |
What are the types of covers available? |
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There are three internationally recognized clauses under which cover is usually granted. They are known as Institute Cargo Clauses (A), (B), and (C) |
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Institute Cargo Clauses (A) |
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This is the widest possible cover which covers 'all risks' of loss of or damage to the subject matter (i.e.Cargo), except for a few standard exclusions. |
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Institute Cargo Clauses (C) |
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This is the most restricted clause and covers only: loss or damage reasonably attributable to; |
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Fire or explosion |
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Vessel or craft being stranded grounded sunk or capsized |
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Overturning or derailment of land conveyance |
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Collision or contact of vessel craft or conveyance with any external object other than water |
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Discharge of cargo at a port of distress |
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and loss or damage caused by; |
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General average sacrifice |
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Jettison |
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Institute Cargo Clauses (B) |
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This cover is similar to 'C' Clause, but in addition covers: |
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Earthquake, volcanic eruption or lightning |
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Washing overboard |
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Entry of sea, lake or river water into vessel, craft, hold, conveyance, container, liftvan, or place of storage |
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Total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft |
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General Exclusions |
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Willful misconduct of Insured |
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Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject matter |
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Insufficiency or unsuitability of packing or preparation |
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Inherent vice or nature of the subject matter |
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Delay |
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Insolvency or financial default of the owners managers charterers or operators of the vessel |
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Nuclear Weapons etc |
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Other Exclusions |
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Unseaworthiness of vessel or craft |
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Unfitness of vessel, craft, conveyance, container or liftvan |
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War etc. |
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Strikes etc |
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| 4) |
What are the sales terms? |
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FOB - Free on Board
(The seller fulfils his obligation to deliver when thegoods have passed over the ship's rail at the named port of shipment) |
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C & F (now CFR) - Cost and Freight
(The seller's obligation is similar to that under CFR, but in addition he has to purchase Marine Insurance against buyer's risk) |
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C I F - Cost Insurance & Freight
(The seller has the same obligation under CFR but which the addition that he has to purchase Marine Insurance against the buyers risk) |
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| 5) |
What is the procedure to make a claim if there is a loss of or damage to cargo? |
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In the event of loss or damage which may involve a claim under Marine Insurance, immediate notice of such loss or damage must be given to the Insurance Company/Surveyors named in the policy/certificate.
The Insurance Company/Surveyors named in the policy/certificate will arrange a Survey Report |
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| 6) |
What are the documents required when making a claim? |
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To enable claims to be dealt with promptly, the Assured or their Agents are advised to submit all available supporting documents without delay, including when applicable: |
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Original Policy or Certificate of Insurance. |
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Original or copy shipping invoices, together with shipping specification and/or weight notes. |
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Original Bill of Lading and/or other contract of carriage. |
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Survey Report or other documentary evidence to show the extent of the loss or damage. |
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Landing account and weight notes at final destination. |
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Short-landing Certificate. |
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Repair estimate. |
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Correspondence exchanged with the Carriers and other parties regarding their liability for the loss or damage. |
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Please contact AVIVA NDB Insurance for further details |
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Marine Insurance