This Presentation focuses mainly on Marine Cargo Insurance. Coverage, Scope and Exclusions related to Cargo Insurance are covered in brief.

1. MARINE INSURANCE
RAJAT DESHMUKH

2. SIGNIFICANCE OF MARINE INSURANCE
• Marine Insurance is a contract whereby insurer
undertakes to indemnify the insured against
marine losses to goods or vessel.
• Indemnification is subject to the agreed value
basis.
• The basis of indemnity is agreed sum insured and
method of indemnity is always on cash basis.

3. Broad Classification
Marine
Insurance
Hull Insurance
Cargo/Goods
Transit
Insurance

4. INSTIUTE OF LONDON UNDERWRITERS

5. Types of Contracts as per INCOTERMS
• Free on Board (F.O.B) – Seller’s responsibility until the
goods are placed on board and it is buyer’s responsibility
thereafter.
• Free carrier (F.C.A) – Same provisions as above but is
relevant to air/road/rail.
• Cost & Freight (C.F.R) – Buyer’s responsibility starts
once the goods are on board.
• Cost , Insurance & Freight (C.I.F) : Seller is
responsible for arranging insurance whereas premium is
included as a part of the cost of goods.

6. Institute Cargo Clauses A/B/C
(Applicable for Overseas Shipment)
Institute Cargo Clause C (ICC C)
• Fire or Explosion
• Vessel being stranded,
Grounded, Sunk and capsized
• Overturning & Derailment
• Collision or contact with
external object other than
water
• Discharge of cargo at Port of
Distress
• General Average Sacrifice
• Jettison
Institute Cargo Clause B (ICC B)
• All perils of ICC (C) +
• Earthquake, Volcanic Eruption
& Lightning
• Washing Overboard
• Entry of Sea Water
• Total Loss of package lost
overboard or dropped while
loading.
Institute Cargo Clause A (ICC A)
Covers all Risks except the
Exclusions

7. Exclusions
• Willful Misconduct
• Wear and Tear
• Insufficient/unsuitable Packing
• Delay
• Inherent Vice
• War & SRCC
• Malicious Damage (Covered in ICC A , can be
covered in ICC B & ICC C as add on.)
• Insolvency of carriers

8. Add ONS For ICC B & ICC C
• TPND
• MALICIOUS DAMAGE
• FLOOD RISKS
• RAIN WATER DAMAGE
• WAR & ALLIED PERILS
• SRCC

9. Types of Policies
Marine
Insurance
Voyage
Specific Marine
Policy
Time
Annual Policy
Floating
Special
Declaration
Policy
STOP

10. Marine Losses

12. PARTICULAR AVERAGE SACRIFICE (LOSS)

13. THANK YOU !!!