MARINE CARGO

Marine cargo policies can cover any transit type including ocean transit, air transit and land transit (rail or road)

Cover Provided

Institute Cargo Clause ‘C’

  • Fire & Explosion
  • Vessel being sunk or grounded
  • Collision of vessel
  • General Average
  • Jettison

Institute Cargo Clause ‘B’

  • All covers of ICC ‘C’ plus
  • Water damage
  • Earthquake, volcanic eruption or lightning
  • Sling loss

Institute Cargo Clause ‘A’

  • All covers of ICC ‘B’ plus all other losses not otherwise excluded
 

Common Clauses

  • Institute War & Strikes Clause This extends cover for War, Strike, Riot, Civil Commotion and Terrorism (known as War & SRCC).
  • Institute Classification Clause Stipulates that vessel has to be registered with classification society
  • Termination of Transit Clause (Terrorism)

Usual Exclusions

  • Wilful misconduct of the insured
  • Ordinary leakage, loss in weight or volume, wear & tear
  • Insufficient or unsuitable packing
  • Inherent vice or nature of subject matter insured
  • Delay
  • Insolvency or financial default of the owner, manager, operator, charter of vessel
  • Nuclear peril
  • Unseaworthiness and unfitness of vessel, craft, conveyance, container or lift van
  • Radioactive contamination, chemical, bio-chemical & electromagnetic weapons
 

Basis of Valuation/Arranger

  • CIF (Cost, Insurance & Freight) – seller arranges insurance
  • C&F (Cost and Freight) – buyer arranges insurance
  • FOB (Free on Board) – buyer arranges insurance

Sum Insured Calculation Example

  • CIF x 110% (Cost, Insurance & Freight + 10%)
  • C&F x 110% (Cost & Freight + 10%)
  • FOB x 20% (Cost at Free on Board + 10%)
 

The basis of valuation depends on the trade terms. INCOTERMS defines the above three important types.

Duration

Marine cargo is covered on a ‘voyage’ basis. If regular shipments, an ‘Open’ cover can be arranged.

‘Location to Location’ can be:

  • Port (of origin) to Port (of destination)
  • Warehouse (of origin) to Warehouse (of destination)
  • Port (of origin) to Warehouse (of destination)
  • Warehouse to Port (of origin)

Standard is ‘Warehouse to Warehouse’

Note: this is just a summary of the cover usually provided. For full details, please consult Tokio Marine’s standard policy wording