Marine Insurance
What is marine insurance?
Marine insurance offers coverage for any damage or
loss related to ships, cargo, terminals, transports, or
transfer.
Port Operations
Marine insurance covers the
loss or damage of :
Ships,
Cargo,
Terminals,
It includes Onshore & Offshore
exposed property like :
Container terminals,
Ports,
Oil platforms,
Pipelines,
Hull,
Marine Casualty &
Marine Liability.
Marine Cargo Insurance are
Governed Primarily By :
Institute Cargo Clause
Inland Transit Clauses
Imports and Exports are
Governed by the rules of :
Institute Cargo Clause A – ICC A
Institute Cargo Clause B – ICC B
Institute Cargo Clause C – ICC C
Domestic Transit Insurance
are Governed by :
Inland Transit Clause A – ITC A
Inland Transit Clause B – ITC B
Inland Transit Clause C – ITC C
Risks Covered
Loss / damage to the subject matter insured reasonably attributable to /caused by:
C
L 1. Fire or Explosion;
A
U 2. Vessel or craft being stranded, grounded, sunk or capsized.
S
E 3. Overturning or derailment of land conveyance;
C 4. Collision or contact of vessel craft or conveyance with any external object
C
L
A 5. Discharge of cargo at a port of distress;
U
S 6. General Average Sacrifice;
E
7. Jettison;
B
8. General Average and Salvage Charges
C
L 9. “Both to Blame” Clause
A
U
S
E 10. Washing overboard;
A 11. Earthquake., volcanic eruption or lightning.
12. Entry of sea, lake or river water into vessel, craft, hold, container
13. Total loss of any package lost overboard or dropped whilst loading/unloading.
14. Any other risk not specifically excluded in the policy or the clauses
What is that Marine Insurance
does not cover
• Planned or intentional damage or misconduct
• Riots, strikes, and war damages
• Damage due to inadequate packaging of the cargo
• Delays in transportation and associated costs
• Wear and tear or leakage of the cargo
• Insolvency or financial distress of a shipping company
Few Points to be understood
Duration Clause
Cash Before Cover and Premium Payment warranty
Customs Laws
Inland Transit Clause
C Physical loss or damage to the subject matter insured
L
A caused
U
S
by:
E 4 Fire
C
L C 4 Lightning
A
U
S
E
4 Breakage of Bridges
C 4 Collision with or by the carrying vehicle
L B
A
4 Overturning of the carrying vehicle
U 4 Derailment or accidents of light nature to the
S
E carrying railway wagon/vehicle
A
4 Any other risk not specifically excluded in the
Policy or the Clauses
Other Important Clause
CUTTING CLUAUSE
FOB CLAUSE
SELLERS INTEREST CLAUSE
BUYERS INTEREST CLAUSE
BRAND AND TRADEMARKS CLAUSE
SHUT OUT CLAUSE
CONCEALED DAMAGE CLAUSE
CONTAINER, TRAILER OR RAILCAR DEMURRAGE CHARGES
CLAUSE
PAYMENT ON ACCOUNT CLAUSE
Continued
LETTER OF CREDIT CLAUSE
PAIR & SET CLAUSE
RETURN EXPENSE CLAUSE
AIR FREIGHT REPLACEMENT CLAUSESANCTIONS AND
LIMITATIONS CLAUSE
INSTITUTE REPLACEMENT CLAUSE
INSTITUTE REPLACEMENT CLAUSE (SECOND HAND
MACHINERY)
IMPORT DUTY CLAUSE
CONTAINER CLAIMS CLAUSE
ASSESSMENT OF RISK AND CRITICAL
UNDERWRITING ASPECT
Experience can be studied from available past history
exposure requires 3 primary aspects to be considered.
Cargo including its packing
Voyage
Conveyance.
PREFERED
REFERED
DECLINED
Packing including Stowage
Different packing could increase or decrease the
risk
Rice in bags are better risk than rice in vessels
and holds
New drums are better than used or recycled ones
ICC recognizes the importance of packing and
there has been a specific exclusion 4.3 if packed
and stowed by their employees.
In Simple terms it should be said that packing should
be such that it should withstand the ordinary rigors of
intended transit.
Same bottles of drugs or chemicals can be packed in
cartons when being transported during inland transit
but it should be palletized when being exported.
Insurers often describe packing as standard and
customary.
Broadly packing can be
divided into 3 parts
Containerized
Break Bulk
Bulk
What are new ?
COMMUNICABLE DISEASE EXCLUSION (Cargo)
JC2020-011 17 April 2020
WAR & SRCC EXCLUSION FOR HIGH RISK AREA
(HRA)
SPECIFIC TERRITORY EXCLUSIONS CLAUSE
JOINT EXCESS LOSS CYBER LOSSES CLAUSE
(JX2020-007) 18/06/2020
CARGO TERMINATION OF STORAGE IN
TRANSIT CLAUSE (AMMENDED)
THANK YOU !
