Marine and Cargo Insurance

Types of Marine and Cargo Insurance

• Cargo Insurance :

  • All-Risk Coverage :

    Comprehensive coverage against all risks of physical loss or damage to cargo, except those specifically excluded.

  • Named Perils Coverage :

    Coverage for specific perils listed in the policy, such as fire, theft, collision, or natural disasters.

  • Open Cargo Policy :

    Provides continuous coverage for multiple shipments within a specified period, offering convenience for frequent shippers.

• Hull Insurance :

  • Full Coverage :

    Comprehensive coverage for the vessel's hull, machinery, equipment, and fittings against physical damage from perils like collision, sinking, fire, and natural disasters.

  • Total Loss Only (TLO) Coverage :

    Coverage for total loss situations where the vessel is irreparably damaged or lost.

• Protection and Indemnity (P&I) Insurance:

  • Liability Coverage :

    Protection against third-party liabilities for bodily injury, property damage, pollution, legal claims, and other maritime-related risks.

Exclusions in Marine and Cargo Insurance

• Loss or damage due to inadequate packing, inherent vice, or ordinary leakage.
• Losses caused by war, strikes, riots, civil commotions, or acts of terrorism (may require additional coverage).
• Consequential losses, delay, loss of market, or loss of profit.
• Losses arising from unseaworthiness of the vessel, unless otherwise specified.

Insured Parties

• Cargo Owners :

  Individuals or businesses that own the goods being transported.

• Shipowners :

  Owners of vessels or ships involved in transporting cargo.

• Freight Forwarders :

  Companies that arrange and manage the transportation of cargo on behalf of shippers.

• Logistics Providers :

  Companies involved in the storage, handling, and distribution of cargo.

Premium Calculation

Premiums for marine and cargo insurance are calculated based on several factors, including:

• Value and type of cargo being transported.
• Mode of transportation (sea, air, rail, or road).
• Shipping routes and destinations.
• Vessel type, age, and condition (for hull insurance).
• Coverage limits, deductibles, and additional endorsements.

Types of Policies

• Voyage Policy :

  Provides coverage for a specific voyage or journey from the port of origin to the destination port.

• Time Policy :

  Provides coverage for a specified period, typically ranging from one month to one year, regardless of the number of voyages undertaken during that time.

• Mixed Policy :

  Combines elements of both voyage and time policies, offering flexibility for varying shipping schedules and durations.