Marine Cargo

This insurance covers per voyage, the risks of loss, damage, expenses and liability to goods insured during transportation from one place to another, anywhere in the world.


This insurance covers the risks of loss, damage, expenses and liability to goods insured during transportation from one place to another, anywhere in the world. Coverage is usually effected on a "per voyage" basis i.e. from the time the goods leave the premises of the seller till the time they finally arrive at the buyer's premises. There is no period specified in the policy. Coverage can either be effected by the buyer or the seller depending on the Contract of Sales.


The process of transportation includes air freight, ocean freight and overland carriage. The marine cargo insurance is to indemnify the cargo owner and or the financiers such as banks against financial loss arising as a result of physical loss, damage, expenses incurred or liability from the transportation process.


Loss can arise from the perils of the sea such as rough weather, sinking, stranding and collision of the ocean vessel and from fire explosion. Loss can also arise from mishandling, theft, pilferage, non-delivery at the ports or as a result of overturning, collision of and or theft from overland transports.


The insurance policy form and coverage are based on the internationally accepted London wordings. For general cargo by sea, three sets of clauses are available known as the Institute Cargo Clauses 'A' 'B' and 'C', descending in scope of cover and a brief summary is below:


Type of Cover


RISKS  A Clauses B Clauses C Clauses
Fire or Explosion 0 0 0
Vessel/Craft being Stranded,
Grounded, sunk or capsized
0 0 0
Overturning or derailment of land
0 0 0
Collision or contact of vessel, craft or
Conveyance with external object other than water
0 0 0
Discharge of cargo at a port of distress 0 0 0
Earthquake, volcanic eruption or
0 0 X
General Average sacrifice  0 0 0
Jettison 0  0   0
Washing Overboard 0 X
Entry of sea, lake or river water into
vessel, craft,Hold, conveyance,
container, liftvan or place of Storage
0 0 X
Total loss of any package lost
overboard or Dropped whilst loading on
to or unloading from Vessel or craft
0 0 X
General Average and salvage charges,
Sue & Labour charges
0 0 0
Pirates, Thieves and non-delivery 0  X    X 
Rough handling 0 X  X 
Contamination  0  X  X 
Willful misconduct of the Assured X X X
Ordinary leakage, loss in weight, wear
and tear
Insufficiency or unsuitability of packing  X  X  X 
Inherent vice or nature of the subject
matter insured
Unseaworthiness of vessel (when the
Assured is Privy to it)
Delay even though caused by a risk
insured against
Insolvency on financial default of carrier X X
Deliberate damage or destruction of the
subject Matter insured
Use of nuclear weapons X X
War & Strikes X X

0 - Covered
X - Not Covered

Download the following forms and documents to find out more about this policy: