Cargo Insurance provides coverage against physical loss or damage to freight/cargo
during the shipment/transport form one point (origin) to another point
(destination) from any external cause during shipping, whether by land, sea or air.
The Risk Area defines the specific type of Marine Insurance
Ocean Marine (blue water)
Inter-Island Marine – within the country (brown water)
Inland Cargo – transport via land
Air Cargo – transport via air
What are you protected against?
Perils of the Seas
Stranding – forced by some accidental or extra ordinary causes to take
ground and stays aground for some reasonable time
Foundering – vessel becomes filled with water and sinks
Shipwreck – vessel driven to shore or against rocks by violent action of
the winds and waves causing destruction or loss of the vessel
Collision - actual violent contact with another vessel or any stationary
object
Fires – Direct fire loss or caused by lightning or fire attributable to
negligence. Includes damage done by measure to extinguish the fire (e.g.
water damage)
Rovers, Pirates and Thieves – Rovers and Pirates are persons who
without legal commission plunder other vessels indiscriminately on the
high seas. Thieves refer to persons who with the use of violence commit
robbery. This does not include ordinary theft or pilferage
Jettison – refers to the throwing of cargo or ship’s gear as a measure to
preserve the ship and cargo from loss in time of common danger
Barratry – includes every wrongful act willfully committed by the master
or crew to the prejudice of the owner of the ship, or the owner of the
cargo. If the master and crew
Extraneous Perils – these perils maybe applied for by the insured depending
on the particular cargo necessitating such special covers, for additional
consideration
Theft – actual breaking open of cases
Pilferage – Skillful extraction of parts of the contents of a package
Non-delivery – when a package or the entire shipment is not delivered to
its final destination
Fresh water damage – Damage caused by fresh water or rain
Leakage – loss to liquid cargoes by reason of viscosity
Breakage – Damage due to rough handling of the cargo
Sweat Damage – Condensation as a result of changes in temperature
Mold Damage
Hole Damage – holes formed in bales goods or sacks causing leakage
War Perils
War, Civil War Revolution, rebellion, insurrection, or civil strife arising
therefrom, or any hostile act by or against a belligerent power
Capture, Seizure, arrest, restraint, or detailment
Derelict mines, torpedoes, bombs, or other derelict weapons of war
