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Marine Cargo

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Marine Insurance is said to be Mother of all insurances

If the goods are moving from one place to another, they are prone to several risks. Risks of fire, theft, rain water damage, riots, strikes, war, sinking of vessel, piracy etc. There is no way to avoid these risk, hence the most viable solution to avert the loss is to buy Marine Cargo Insurance. It compensates the cargo owner for the loss or damage to its cargo attributable to large number of risks including but not limited to:

Coverages for Marine Cargo Insurance:
Fire
Accident to the carrying conveyance
Sinking of the vessel
Loss of package whilst loading and unloading from the conueyance
Piracy
War and Strikes
Terrorism
Earthquake

EFU well understands that the insurance needs of its customers varies, depending their type of trade. Whether you are a small trader, a large production unit or the one setting up a new plant, EFU has all kinds of Marine insurance solutions for you.

The Marine Insurance products offered by the company includes but are not limited to:
  • Marine Cargo Insurance basic covers including covers for War and SRCC (Strikes Riots and Civil Commotion).
  • Marine covers for new projects including DSU (Delay in Startup).
  • Seller's contingency insurances.
  • Liability covers for stevedoring, transportation, freight forwarding, shipping agency and CFS (Container Freight Station) services are also available.

The products are in line with the international marine practices and wordings. Tailor made products are also designed to meet the varying needs of the customers. The underwriting staff is fully trained and carries vast experience. The pricing is competitive thus making the product attractive for the customer.

EFU also provides the online coverage facility to its customers. Through this facility, the insured can issue the marine cover at its own desk 24/7. So the customers should not be worried about holidays or late hours as they have the option to cover their interests at any time they wish.

Marine Cargo Insurance covers are based on clauses designed by International Underwriter's Association (IUA), London. They are called Institute clauses. All Marine Cargo Insurance covers are issued on the basis of:
  • Institute Cargo Clauses A
  • Institute Cargo Clauses Air
  • Institute Cargo Clauses B
  • Institutes Cargo Clauses C
  • Institute War Clauses Cargo
  • Institute War Clauses Air Cargo
  • Institute Strikes Clauses Cargo
  • Institute Strikes Clauses Air Cargo

And also

  • Road / Rail Cargo Clauses A
  • Road / Rail Cargo Clauses B
  • Road / Rail Strikes Clauses Cargo

Download Clauses

EFU has a large network of claim survey and settling agents to effectively handle the claims on policies covering exports. Claims in such cases are paid to the foreign buyer in their own country and in foreign currency.

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FAQs

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What is Marine Cargo insurance?

Marine Cargo Insurance provides coverage to the Cargo against the loss or damage that can occur during the process of transportation from the point of origin till final destination.

Why Marine Cargo Insurance is important?

Various incidents can be reported during the transportation of goods that is carried by sea going vessels, aircraft, train, truck or trailer. Comprising mainly from the grounding of cargo ships, collisions at sea and in air, engine failure, piracy, hijacking & terrorism. These threats reflect significant monetary losses to Cargo owners in the absence of the appropriate Marine Cargo Insurance.

What are the types of insurance covers available for Cargo carried by sea?

There are many clauses that are being used according to the types of Cargo but the most commonly used clauses for Cargo carried by sea are as follows.

Institute Cargo clauses (ICC A) provides protection to the Cargo against the most comprehensive set of risks except for few specified exclusions and it is mainly known as "all risks" cover.

Institute Cargo Clauses B & C (ICC B & C) are known as named perils covers because perils covered are specifically mentioned in the clauses. They are best fit to vigorous, second hand or low valued bulk cargoes.

Can we cover custom duties under Marine Cargo Insurance?

Yes, custom duties can be covered.

What is general Average?

General Average is defined as the situation which is declared by the master of the ship when any loss is sustained by the vessel resulting in the delay in completion of voyage. When a GA is declared then Cargo owners are required to share the loss amount with the shipping line proportionally.

What mode of transportation is usually acceptable for Marine Cargo Insurance?

Cargo is usually transported through vessels, aircraft, rail, truck or trailer. We provide insurance coverage for all these mode of transportation.

What are the risks covered by ICC A, B & C?

Risk ICC-A ICC-B ICC-C
Fire or Explosion check check check
Vessel/Craft being stranded, grounded, sunk or capsized check check check
Overturning or derailment of land conveyance check check check
Collision of contact of vessel, craft or conveyance with external object other than water check check check
Discharge of cargo at port of distress check check check
General Average Sacrifice check check check
Jettison check check check
Earthquake, Volcanic Eruption or lightning check check cross
Washing Overboard check check cross
Entry of sea, lake or river water into vessel, craft, hold, conveyance, container, lift van or place of storage check check cross
Total loss of any package lost overboard or dropped whilst loading on to or unloading from vessel or craft check check cross
Pirates, Thieves and non-delivery check cross cross
Rough handling check cross cross

What are incoterms?

These terms are published by International Chamber of Commerce, they indicate the basis of contract and clarify the responsibilities of buyers and sellers in international trading.

What information is usually required when obtaining Marine Cargo Insurance & how the premium is determined?

In order to obtain Marine Cargo Insurance and determine the rate of premium, it is very important that customer should give accurate and complete information to insurer. For cargo insurance following information is considered as very important.
  • Details of Goods.
  • Value of Goods.
  • Basis of valuation.
  • Date of shipment.
  • Period of Insurance (in case of period covers)
  • Voyage or point of loading & unloading.
  • Loss history

What is Jettison?

Jettison is the situation where master of the ship after declaring GA throw overboard the certain cargo to rescue the ship and other cargo on board. In this scenario all other cargo owners are required to contribute in the loss occurred except for the cargo owner whose cargo has been thrown.

How can I take out Marine Cargo Insurance for my goods?

To take out Marine Cargo Insurance, you need to contact any branch of EFU mainly with following set of documents.
  • Your company’s registration certificate
  • Your company’s NTN
  • Proforma invoice
  • Packing list
  • Form-e (in case of export)

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The description mentioned about each insurance on this website is for our client's and customer's information and knowledge only. The benefits offered by these insurances as described herein will be completely dependent on the policy terms, conditions, limitations and exclusions and therefore the information provided through our website should not be misinterpreted.

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