Cargo InsuranceImport – Export cargo insurance
Subject - matter insured
Goods in transits around the world.
Scope of cover
Depending on different types of goods (coal, petroleum, frozen ...), different kinds of transportation, insurance policy will apply different terms.
According to the Institue Cargo Insurance Clauses of The International Underwriting Association of London (ICC 2009), the covered risks are summarized as follows:
RISKS COVERED | ICC (A) | ICC (B) | ICC (C) |
| Fire or explosion | o | o | o |
| Vessel or craft being stranded grounded sunk or capsized | o | o | o |
| Overturning or derailment of land conveyance | o | o | o |
| Collision or contact of vessel craft or conveyance with any external object other than water | o | o | o |
| Discharge of cargo at a port of distress | o | o | o |
| General average sacrifice | o | o | o |
| Jettison | o | o | o |
| Washing overboard | o | o | x |
| Earthquake volcanic eruption or lightning | o | o | x |
| Entry of sea lake or river water into vessel craft hold conveyance container or place of storage | o | o | x |
| Total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft | o | o | x |
| Piracy, thief, pilferage and non-delivery.... | o | x | x |
x: uncovered risk; o: covered riskm | |||
Main exclusions
According to the Institue Cargo Insurance Clauses of The International Underwriting Association of London (ICC 2009), the main exclusions are briefly summarized as follows:
• Wilful misconduct of the Insured
• Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear, inherent vice or nature of of the subject-matter insured
• Insufficiency or unsuitability of packing or preparation of the subject-matter insured
• Delays
• Insolvency or financial default of the owners managers charterers or operators of the vessel
• Radioactive, nuclear
• unseaworthiness of vessel or craft or unfitness of vessel or craft.
• Unfitness of container or conveyance.
• Wrongful act of any person or persons (*)
• War risks, strike risks (*)
(*) may be covered by additional terms.
Insurance Premium
Please contact BIC to get proper rates for the coverage of each type of goods.
Formula for calculating premium:
• Premium = Premium Rate (%) x Insured Amount
• Premium rate = Base rate + Additional rate (if any)
• Sum insured is normally calculated on 100% or 110% of invoice value.
Importance Notes
• Always read the insurance policy carefully and advise BIC if there is any error.
• Take reasonable precautions for the purpose of preventig or minimising loss
• Make sure all of the rights against carriers, bailees or other third parties are properly preserved and exercised
• Contact BIC to be timely advised and guided when there are problems arisen.
Related Documents
Institute Cargo Clauses (Air) 01.01.2009
Institute Cargo Clauses (A) 01.01.2009
Institute Cargo Clauses (B) 01.01.2009
Institute Cargo Clauses (C) 01.01.2009
Institute Strikes Clauses (Air Cargo) 01.01.2009
Institute Strikes Clauses (Cargo) 01.01.2009
Institute War Clauses (Air Cargo) 01.01.2009