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A marine cargo policy would cover perils or contingencies such as:
||Fire or explosion
||The vessel being stranded, grounded, sunk or capsized
||Collision or contact of vessel, craft or conveyance with any external object
||Overturning or derailment of land conveyance
||Hurricane, earthquake, volcanic eruption, washing overboard
||Entry of sea, lake or river water into vessel, conveyance or place of storage
War risks and riot, strike & civil commotions cover may be added for extra premium.
The sum insured is based on the value of the cargo including costs, charges and profit (usually 10% allowed). For occasional shipments a single risk policy may be issued whereby the cargo is covered for a specific voyage with the points of departure and destination specified, as well as the approximate date of departure and arrival. The sum insured is specified and a description of the cargo given on the policy.
Where regular shipments are made an open cover agreement may be advisable. This relates to an agreement by the insurer to give cargo insurance on proposed shipments by a particular insured. For each shipment, a certificate is issued and the premium paid. The agreement is generally applicable for 12 months and would detail such matters as types of cargo, types of vessels, limits per shipment, premium rates and conditions of insurance.
Cargo policies provide cover from warehouse to warehouse but if the cargo is discharged at the final port of discharge and remains there the cover will normally cease after 60 days from such discharge.
Insurance on similar lines is available where cargo is transported by air rather than sea. Generally premiums are lower for air cargo insurance than sea cargo insurance.
The above explanations give a summary of the type of cover available. For full details, including the exclusions and conditions that apply, please contact us at any of our offices.