Types of Marine Cargo Insurance Policies

Marine cargo policies render transport insurance cover for internal, imported, exported and transit goods that are transported by land, air, sea or a combination of these.


Different Types of Insurance Coverage in Goods Transport Insurance.

In Iran we issue shipment policies same as standard world class terms and conditions in London.

Lloyd's categories shipping insurance into one of three Institute Cargo Clauses – A, B and C.

Clause C:

 The condition of complete loss of goods

 In this type of insurance, total loss damage to goods, all at once, due to fire or complete sinking.

 This insurance is subject to the risks as follows:

·         Fire or Explosion

·         Vessel or craft being stranded, grounded, sunk or capsized.

·         Land transit vehicle being overturned or deviated from the line.

·         Collision or contact of vessel, craft, conveyance with any external object other than water.

·         Discharge of cargo at the port of distress.

·         Cargo sacrifice.

·         Jettison in order to lightening.

Clause B:

 In this insurance the insurer is bound to compensate for all risks of Clause C in addition to damages due to risks as follows:

·         Earthquake, volcano or lightning

·         Entry of sea, lake or river water into the vessel, cargo hatch, container lift van or place of storage.

·         Total loss of any package or goods lost overboard or dropped whilst loading to or discharging from vessel.

·         Goods fall into sea from aboard.

·         Meanwhile, in Clause B cover, in addition to risks included in Clause B, risks like non-delivery, theft, pilferage, corrosion, erosion, stain, breakage, scratching, hook damage, shortage, leakage (seepage) are also covered.

·         Franchise (Insured’s share of sustained Damage)

·         With the exclusion of damage sustained due to non-delivery and damage due to the risks mentioned in Clause B, 3% of the value of each damaged package shall be liable to franchise.

Clause A:

 This type of Insurance is most complete type of Transport insurance and is mostly used for susceptible and damageable goods, which includes all risks but the excluded ones.

·         Exclusions (Damages which have not been covered)

·         Ionizer rays and radioactivity pollution caused by nuclear fuel and wastes.

·         Rejecting goods entry by the policyholder or prevention of goods entry by the importer country.

·         Deliberate negligence of insured that leads to damage or loss of the insured goods.

·         Ordinary deterioration of the insured goods and similar risks such as ordinary weight shortage, corrosion and erosion.

·         Loss, damage or expenses due to insufficiency and inappropriate packaging or preparation of the insured goods.

·         Loss, damage or expenses due to inherent defect or nature of the insured goods.

·         Loss, damage or expenses due to application of any type of war weapons, working with nuclear energy, spill or similar interactions of radioactive substance or power.

·         Un-seaworthiness of vessel, craft or unfitness of vessel, launch, vehicle containers or lift van for safe carriage of the subject matter of insurance. It should be noted that war risks, strike, chaos and terrorism are among exclusions of the insurance policy and in case an agreement is reached between the insurer and insured, these risks may be covered.