Marine Cargo

It is a policy that provides you with indemnity and financial protection for loss of or damage to your cargo during transit by: 
       1.    Sea
       2.   Land
       3.   Air

It is ideal for:
       1.   Importers/exporters
       2.   Logistic companies on behalf of their customers
       3.   Freight forwarders on behalf of their customers
       4.   Manufacturers
       5.    Other buyers and sellers engaged in international and/or local trade


In general, there are three types of marine cargo insurance coverage, namely:

The difference from the above types of closure is the extent of the closure, where ICC (A) has the broadest scope, followed by ICC (B) and then ICC (C).

1. Loss or damage due to:

  • Fire or explosion
  • Vessel or craft being stranded, sink or capsize
  • or derailment of land conveyance
  • Collision or contact of vessel craft or conveyances with any external objects other than water
  • Unloading at the emergency port / Discharge of cargo at a port of distress.
  • General Average Sacrifice.
  • Jettison

2. "General Average" and Salvage Charges

3. This insurance is extended to indemnify the Assured against such proportion of liability under the contract of affreightment “Both to Blame Collision” Clause as is in respect of a loss recoverable hereunder. In the event of any claim by shipowners under the said Clause the Assured agree to notify the Underwriters who shall have the right, at their own cost and expense, to defend the Assured against such claim.

Covers all losses covered by the ICC (C), plus loss or damage due to:
    1. Earthquake, volcanic eruption or lightning
    2. Washing Overboard
    3. The entry of sea water, lake water, river water into vessel craft hold, container, liftvan, or place for storing goods on board the ship causing damage to the property of the insured
    4. Total Loss any package of lost overboard or dropped whilst loading on to , or unloading from, vessel of craft

Covers all loss or damage to goods transported as cargo as long as it is not excluded in the policy. Usually we know it as the closure of All Risk Transportation Insurance.
Besides the above coverages, there are another coverages in respect of Marine Cargo Insurance as below :
     1. Institute Coal Clauses (Clause 267) 1/10/82 for Coal
     2. Institute Frozen Food Clause (A) (Clause 263) 1/1/86 for Frozen Food

Extension Coverage

Selection of Additional Insurance (optional) such as:

  • Institute Strike Clause

    Insurance against any risks of strike, deterrence work/worker, labour disturbance, riot, civil insurrection, terrorism, political action, general average and salvage costs.

  • Institute War Clause

    Insurance against any risks of war, civil war, rebellion, violent act from and or against the authority, arrest, takeover, detention related to the abovementioned risks, mine, torpedo, bomb or lagged war weapons, general average and salvage costs for the loss caused by the abovementioned risks. insured is the Value of every insured asset based on the Invoice and or market price.

  • Institute Theft, Pilferage & Non Delivery Clause

    In consideration of an additional premium, it is hereby agreed that this insurance covers loss of or damage to the subject matter insured caused by Theft or Pilferage, or by Non-Delivery of an entire package, subject always to the exclusions contained in this insurance.

  • Institute Classification Clause 1/1/2001

    Amended to include BKI Classed vessels of not more than 30 years old with minimum 100 Gross Tonnage.

  • Including

    the risk of rain and water damage and loading and unloading risks.

Insurance Period

Insurance coverage begins when the insured item leaves the warehouse or storage area specified in the policy to start the journey and continues throughout the journey with the usual route of travel and ends when:

 1. The goods are received by the insured or arrive at the destination warehouse or final storage place stated in the policy
 2. Arriving at the warehouse or other storage place desired by the insured, to:

  • Storage of goods other than in the usual place
  • Allocation or distribution of goods, or
  • The expiration of 60 days after the goods are unloaded at the port, whichever comes first

If due to circumstances beyond the control of the insured, the contract of carriage is forced to be terminated at a port or place other than that stated in the policy, the insurance coverage will also end, unless there is prior notification to the insurer and the insured submits an application to continue insurance coverage with additional premiums. when required by the parties.
If after the closing of the policy starts to run, the destination of the goods travel is changed by the insured, the premium, and the policy conditions will also be adjusted and provided that prior notice has been given to the insurer.


  1. Wilful misconduct of the Assured.
  2. Ordinary leakage, ordinary loss in weight or volume, ordinary wear & tear.
  3. Insufficiency or unsuitability of packing
  4. Inherent vice or nature of the subject matter insured
  5. Loss damage or expense proximately caused by delay
  6. Insolvency or financial default of Owners, Managers, Charterers , or Operators of the vessel
  7. Deliberate damage to or deliberate destruction of the subject matter insured (This covered under ICCA)
  8. The use of the weapon or war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.
  9. Unseaworthiness of vessel or craft.
  10.  Unfitness of vessel, craft, conveyance, container or liftvan for the safe carriage of the subject matter insured
  11.  War Exclusion
  12.  Strikes Exclusion


Data Minimum Requirements

  1.  Type of Cargo
  2.  Basis of evaluation for cargo
  3.  Type of packaging
  4.  Voyage
  5.  Type of conveyance (land,sea,air)
  6.  Estimated max value of shipment
  7.  Estimated frequency of shipment
  8.  Estimated Turn Over (last year, current year, next year)
  9.  Coverage requirement
  10.  Loss history

Claim Procedures

1. The Insured must immediately report to the Insurer (Insurance Company) about any loss or indication of loss or damage to the goods insured
2. Immediately after the Insurer receives notification, an examination of the acceptance documents will be carried out which consists of: 
     a.  Insurance application letter
     b.  Cover Note
     c.  Insurance policy
     d.  Other written evidence, such as telex, facsimile, email and others
If the acceptance document provided is not valid, the Insurer will notify that the claim cannot be processed. However, if applicable, the claim process will continue. And for simple claims and the value of losses that are not too large will be handled and processed by the Insurer and the Insured must complete the necessary documents, including: