Marine Cargo Insurance provides cover in respect of goods imported or exported by sea or air. Cover usually starts from the warehouse in the country of origin, continues throughout the ordinary course of transit by sea or air until the goods are delivered to the final warehouse of destination, including inland transit.

The cover is usually provided under one of three sets of cargo clauses – Institute Cargo Clauses (A), (B) or (C).

The Institute Cargo Clauses (A) provide the widest cover of the three as it covers all risks subject to exclusions, the main ones being loss attributable to:

• Wilful misconduct of the Insured
• Ordinary leakage, loss of volume or weight, ordinary wear and tear
• Insufficiency or unsuitability of packing
• Inherent vice
• Delay
• Unseaworthiness of vessel

The (C) clauses provide cover in respect of major casualties such as fire or explosion, vessel being sunk, collision while the (B) clauses provide cover against some perils additional to those insured under the (C) clauses.

There are other clauses, which apply to specific goods such as frozen foods, timber.

If you have to ship goods on a regular basis, it would be easier to have a marine open cover, which provides an automatic cover for all your shipments. You would only have to declare shipments on a regular basis instead of having to arrange for cover each and every time you have a shipment to make.

A marine vessel is usually insured under a marine hull policy as per the Institute Time clauses - Hulls. Under this clause, hull and machinery are insured against a wide range of perils.

Coverage includes the following:

• Perils of the seas or other navigable waters
• Fire, explosion
• Violent theft by persons from outside the vessel
• Jettison
• Piracy
• Collision
• Earthquake, volcanic eruption or lightning

In addition, collision liability is also covered.

Pleasure Craft

The Pleasure Craft insurance covers the hull, machinery, gear and equipment of the vessel. The policy can be extended to cover third party liabilities.

Disbursement Policy

The Disbursements Policy is issued on an agreed value basis to pay for disbursements in case the vessel is a total loss. Disbursements include fuel costs, costs of victualling, cost of stores and materials, customary towage in port areas, berthing costs.

Protection and Indemnity

The Protection and Indemnity Cover enables a ship owner to recover losses which are not usually covered under the Hull and Machinery policy. 

The cover is subject to the rules of the club of which the ship owner is a member and relate to the liabilities of the ship owner. Thus the 1/4th collision liability not usually insured under the Hull and Machinery policy is covered as well as wreck removal expenses, damage caused by oil pollution, shipwreck indemnity to seamen.