Marine Cargo Insurance deals with insurance of goods in transit. The risks covered may relate to Overseas Shipments (Exports/Imports); Inland Transit (Rail/Rod); Duty and Profit (which can be insured in the case of Imports); War and Strikes Riots Civil Commotions (Exports/Imports) and Strikes Riots Civil Commotions (Inland Transit). Unlike other policies, Marine Cargo policies are issued for one particular voyage/transit.
Marine Cargo policies are agreed value policies and the Sum Insured stated in the Policy is binding on the Insurer. It is normal to insure overseas consignments for 110% of the C.I.F. value. However, greater values can be insured with the consent of the insurer to take care of duty and profit.
There are 3 sets of Institute Cargo Clauses known as A, B and C.
All the 3 sets of Clauses provide warehouse to warehouse cover. There is, however, a limit of 60 days after discharge at the final port for the inland journey to be completed. This is the maximum period. If, due to circumstances beyond the control of the insured, extension is required, the insurers have to be approached and additional premium paid for such extension. It is generally granted for a period of 30 days at one time.
It is normal to insure overseas shipments for War and Strike Riots Civil Commotions Risks also. Separate clauses are used for these risks.
Whilst it is possible to add the percentage of Duty and an agreed percentage for profit to the C.I.F. Value of imported goods, it is desirable to insure these separately. Subject to certain specified Conditions, these policies are offered by Insurers.
Two types of policies are available. These are:
These are largely the same as in A, B, C, Clause except for the clauses which are not applicable to Inland Transit.
The risk is covered from Warehouse to Warehouse with a limitation of 7 days at the carrier's godown at destination.