Marine Cargo Insurance

Safeguard your cargo from damage.

Why is the Marine Cargo Insurance useful?

Our Marine cargo policy covers risks of loss or damage from accidental causes such as sinking, stranding, fire, collision, seawater, heavy weather, contact, explosion, damage during discharge or loading and special charges incurred at the point of distress and a wide range of other perils.

Our Marine policies can either be single voyage policies or annual policies. A Shipper or a Buyer could obtain our cargo Import/Export policy to protect against loss or damage that could be caused to his cargo consignment during a voyage whether for domestic or international journeys, by sea, air, or land

Cargo ship with marine cargo insurance

What you need for this cover:

Who is this cover for:

All other individuals and businesses that occasionally import raw materials or stocks or finished products for resale.

The policy is mandatory for importers who seek guarantees in form of LC’S from banks.*


What would you like to know?

Transit insurance covers goods and/or merchandise while in ordinary transit from one location to another.


Your own insurance policy can be designed to meet your specific needs. It can be tailored to ensure sufficient limits of liability, relevant types of coverage and also provides consolidated claims handling. It may also be a less expensive alternative to insurance provided by the transit carrier.

Coverage for Transit Insurance is often referred to as Warehouse to Warehouse. It is important to note however that coverage is actually determined by the terms of sale used in each transaction (F.O.B., etc.). Coverage is warehouse to warehouse only when the Insured is responsible to provide such coverage based on the sales terms. This coverage attaches at the point at which transit commences, and terminates when the cargo is delivered to the final destination. Both the attachment and termination points may be far inland, many miles from the ports of loading and discharge.


An “Open” marine cargo policy is designed for clients who have a regular turnover of Goods in Transit. The contract will cover all transits that come within the scope of the insurance. Premiums are debited monthly, quarterly or annually. The chief advantage of this type of policy is that the client does not need to report each shipment individually to ensure cover is in place. Instead, they declare shipments as required, or in bulk for a set period, on a set date. The policy is generally written on a wide basis to cover all goods and merchandise usual to the operation of the Insured. The Insured must present the Insurer with all the specific details of their business, including the type of goods involved, limits, and destinations. Shipments outside of the norm, or in excess of limits or geographic allowances, etc. must be reported in advance.


Ocean Marine Cargo Insurance Certificates which often accompany shipment documentation to third parties, are negotiable documents which entitle the bearer to collect claim settlement. Banks frequently request them in letter of credit transactions. An Accord Form Certificate of Insurance simply provides evidence of coverage in place.


Marine cargo policies always contain a FC&S (Free of Capture & Seizure) clause, which excludes war risks, strikes, riots and civil commotions and similar risks. A specific agreement must be made for an additional premium to be paid if these perils are to be insured. There are three Institute War Clauses covering cargo, air cargo, and postal shipments. The political and social climates of a given country determine the rates.



A loss arising through a voluntary sacrifice of any part of the ship or cargo, or an expenditure to safeguard the ship and the rest of the cargo. When the vessel owner declares a general average, the vessel owner and all the cargo interests will share the expenses associated with the general average on a pro-rata basis. These expenses are covered under your Marine Cargo Policy.


A bill of lading is the most common form of affreightment which serves three purposes: it is the contract of carriage between the ship-owner and shipper, outlining the liability of carrier, the ship owner’s receipt for the goods; and the document of title to them (as a negotiable document, interest can be assigned to a third party through the bill of lading).


Incoterms precisely define the responsibilities of the buyer and the seller and are recognized as the international standard by custom authorities and courts in all the main trading nations. They are standard trade definitions and are issued by the International Chamber of Commerce. Incoterms reduce the risk of misunderstandings and legal disputes. Incoterms also specify the loading and unloading responsibilities of the buyer and seller. There are 13 Incoterms, each denoted by a 3-letter code. The terms are grouped in four categories based on the first letter in the three-letter abbreviation.

  • Under the “E”-term (EXW), the seller only makes the goods available to the buyer at the seller’s own premises. It is the only one of that category.
  • Under the “F”-terms (FCA, FAS and FOB), the seller is called upon to deliver the goods to a carrier appointed by the buyer.
  • Under the “C”-terms (CFR, CIF, CPT and CIP), the seller has to contract for carriage, but without assuming the risk of loss or damage to the goods or additional costs due to events occurring after shipment or dispatch.
  • Under the “D”-terms (DAF, DES, DEQ, DDU and DDP), the seller has to bear all costs and risks needed to bring the goods to the place of destination.


An underwriter with few facts is a pessimist. The more information one is able to provide about one’s insurance needs, the more optimistic an underwriter is likely to be. To enable an underwriter to assess the risk and give a competitive set of rates, the following information is essential:

  • A history of the Insured’s business operations.
  • Destinations, Ports.
  • Information pertaining to any Inland Transit before loading and after discharge, particularly if of long duration and transport facilities are poor.


  • Damage through breakage, leakage, sweating, spontaneous combustion, rapid deterioration due to wetting, climate conditions, etc.
  • Theft and pilferage.

Also, if one is an importer/exporter arranging his own insurance the following points will apply:

  • Age, tonnage and ownership of the vessel. In recent years, one of the main concerns has been in respect to sub-standard vessels, bad management and flag of convenience vessels.
  • Packing and method of transit, i.e., Full Container Loads.
  • Length of voyage and time of year.
  • Moral hazard of buyer and seller.


Mutual trust in negotiating an insurance contract. The Insured must fully disclose all aspects of their request for coverage completely and truthfully. A breach of good faith by one party entitles the other to avoid the contract.



The value of the shipment declared for insurance must reflect the true value of a shipment. If a loss occurs and the amount declared is found to be less than the true value, the claim settlement may be pro-rated to a lesser amount. It is as if the insured is acting as a co-insurer of the shipment.



Follow the instructions outlined on your Certificate of Insurance. Report the loss to the carrier in writing and notify them that you intend to claim for the loss. Contact the surveyor at the destination that is usually shown on the Certificate of Insurance, who will attend and establish the cause and extent of the loss. Advise your insurance agent/broker, who will assist with managing the claims process.


The assured must at all times act in the same manner as they would if they were uninsured. They must act as a “prudent uninsured”. This is the basis on which all insurance is governed.