1. MARINE CARGO INSURANCE
Rashmi Lucy Barwa
The New India Assurance Co. Ltd.

2. Cargo
Anything that is transported from one place to another is called CARGO
If it moves on its own it is not cargo. e.g. Car being sent on truck, railways, ships, aircraft will be cargo and can be covered under marine policy.
As long as Cargo is in Transit – Subject Matter of Marine Insurance

3. Coverages Inland Transit – By Rail/Road Overseas Transit – By Sea
ITC (A) All risk,
named exclusions
ITC (B) Basic cover,
ITC (C) Fire only,
Overseas Transit – By Sea
ICC (A) All risk, named exclusions
ICC (B) Named perils,
named exclusions
ICC (C) Basic maritime
perils, named
exclusions

4. Risk Covered - Inland ITC-A: All Risk of loss or damage
ITC-B: Physical loss or damage caused by
Fire, Lightning, Breakage of Bridges, Collision, derailment or accident
ITC-C Physical loss or damage caused by
Fire & Lightning

5. Exclusion Willful misconduct of the insured Ordinary losses
Insufficiency or unsuitability of packing
Delay
Inherent vice or nature of the subject matter insured.
War
Malicious Damage (ITC-B &C)
Strike Riots & Civil Commotion (Add on)

6. Duration of Coverage
As soon as the consignments leaves the seller’s premises, continues during ordinary course of transit and terminates either:-
On delivery to consignee’s warehouse at destination named in the policy, or
In case of rail only or rail/road, until expiry of 7 days after arrival of railway wagon at destination station or
In case of road only, until expiry of 7 days after arrival of vehicle at the destination town
Whichever shall first occur.

7. Risk Covered (by vessel)
ICC-A
Covers ALL RISKS of loss or damage to the subject matter insured under the policy proximately caused by insured perils, except risks specifically excluded.

8. Risk Covered Perils ICC-B ICC-C Fire & Explosion Yes
Vessel or craft being stranded, grounded, capsized or sunk
Overturning or derailment of land conveyance
Collision or contact of vessel, craft or conveyance with any external object other than water
Entry of sea, lake or river water No

9. Risk Covered Perils ICC-B ICC-C Discharge of cargo at port of distress
Yes
Earthquake,
volcanic eruption or lightning No
General Average Sacrifice
Jettison
Washing overboard
General Average & Salvage charges

10. Duration of Coverage
As soon as the consignments leaves the seller’s premises, continues during ordinary course of transit and terminates either:-
On delivery to consignee’s warehouse or other final warehouse at destination named in the policy; or
On delivery to any other warehouse prior to at destination which the insured may elect for storage other than in ordinary course of transit or for allocation or distribution; or
On expiry of 60 days after discharge over side of the insured goods from the overseas vessel at the final port of discharge
Whichever shall first occur.

11. Exclusion Willful misconduct of the Insured Ordinary (inevitable) loss
Improper packing
Inherent vice
Delay
Insolvency/ financial default of carrier, manager, charters or operator of vessel
Deliberate damage/ destruction
Nuclear weapons exclusion
War and SRCC (Add On)
Un-seaworthiness and unfitness of vessel / craft

12. ICC-1982 & ICC-2009 Unseaworthiness & Unfitness Exclusion Clause
Exclusion applied if assured / his employees is privy or aware at time of loading. This protects the innocent party.
War exclusion including piracy
Piracy covered under ICC-A but not under ICC-B & ICC-C
Loss damage or expenses due to financial default of the owners managers, charterers or operators of the vessel
This exclusion apply only when the party claiming was unaware of the financial circumstances of the carrier
Terrorism excluded
Still excluded but wider range of threats also excluded (eg. State sponsored terrorism)
From time the goods leave the warehouse.
Does not cover loading
From the time the subject matter insured is first moved in the warehouse…for purpose of immediate loading”
Covers loading, but des not cover storage prior to transit.
On delivery
On completion of unloading
Insurance also terminates if the goods remain in the carrying vehicle and the assured / their employees elect to use it for storage.

13. Types of Policies Specific Voyage Policy Open Policy Open Cover
Annual Turnover Policy
Duty Insurance
Seller’s Contingency Insurance
Increased Value Insurance

14. INCO TERMS Deals with Risk Deals with Transfer of Risk
Rights & Duties of Buyers & Sellers
Deals with who organises the transport & insurance

15. INCO TERMS Inco Terms Risk Transfer Exporter arranges insurance ExW
At seller’s premises after loading
Exporter does not. Buyer to arrange
FCA
When delivered to carrier named
Upto delivery to Carrier
FAS
When delivered alongside ship
Upto Port till placed alongside ship. Loading not covered
FOB
When loaded on ocean going vessel
Upto loading on ocean Going Vessel. Loading Covered.
CFR
CIF
Till Delivery to buyer as per Contract of Carriage e.g. destination port. Min. ICC-C

16. Parties involved The seller (Consignor) and the buyer (Consignee) Bank
The Insurance Company
Port Authorities
The Carrier (Ship, Air, Road, Rail)
Custom Authorities
Shipping Agents
Clearing and Forwarding Agents (C & F Agents)
Stevedores: Contractors appointed by Shipping Company for loading and discharge of Cargo

17. Claim Documents
Original Insurance Policy/Certificate /Declaration, duly discharged or a Letter of Indemnity.
Original or signed copy of Invoice with packing list.
Signed copy of Bill of Lading / Airway Bill
Exchange control copy of Bill of Entry – to check delay and duty payment.
Letter of Subrogation
Special Power of Attorney
Lost overboard certificate / short landing / non delivery certificate / Landed but Missing / Damage Certificate.
Registered AD cards or any other evidence – claim notice

18. Thank You