The growth in world trade is largely facilitated by the rapid development in the areas of transportation by air, land and sea. Insurance products have also been developed through time to provide traders with the protections necessary in the event of loss or damage to cargoes which were transported.

Marine cargo insurance are available with alternative scope of coverage under standardised Institute Cargo Clauses (A), (B) or (C). In addition, Underwriters are prepared to provide cover in respect of War, Strike Riot and Civil Commotion subject to additional premiums. For special cargoes, trade clauses have also been developed by Trade Associations and these are used internationally. Bulk cargoes can be covered under specialised wordings.

Invariably all marine cargo insurance are to protect the traders against losses at seas through maritime perils such as sinking, grounding, stranding, collision at sea or heavy weather damage.

• Types of cargoes and the nature of the cargo involved.
• Quality of the vessel which includes age, tonnage and construction.
• Packing of the cargoes.
• Voyage involved taking into account the ports involved.
• Inland transit involved.
• The loss experience of the client.

Deductibles are imposed depending in the cargoes involved.

At this point, it will be appropriate to note that the transportation of cargoes by air and land are also handle generally by the marine Insurance Department of an insurance company. Again, there are standardised clauses used in the markets around the world.

In cargo insurance, whilst there may be insurance, it is very important for the Insured to consider shipments by reputable carries who will handle their cargoes carefully. Insurance should not be used as a substitute for using poor tonnage as in the event of a loss, the cargoes may be so badly damaged or totally lost that the Insured will suffer losses beyond the scope of insurance such as loss of customers.

Note: This information is for briefing purpose only. Full detail and conditions of policy cover are contained in VIA's official policy wording.