MARINE CARGO INSURANCE

Pieter Venter
TRIDENT ADVANTAGE CC

AGENDA

AGENDA

1. WHY INSURE?
2. BASIC PRINCIPLES OF INSURANCE
3. TYPES OF MARINE CARGO POLICIES
4. TYPES OF MARINE CARGO COVERS
5. MAIN MARINE CARGO CLAUSES
6. EXPLANATION OF MAIN CARGO CLAUSES
7. WHEN A CLAIM OCCURS
8. LETTERS OF CREDIT

WHY INSURE?
1. PARTIAL LOSS (Particular Average)

2. TOTAL LOSS

3. GENERAL AVERAGE

SIC PRINCIPLES OF MARINE INSURANCE

1. INSURABLE INTEREST
2. UTMOST GOOD FAITH
3. INDEMNITY
4. RISK
5. SUBROGATION
6. PROXIMATE CAUSE
7. SUE AND LABOUR

PES OF CARGO POLICIES

THERE ARE 3 BASIC TYPES OF MARINE POLICIES

1. FACULTATIVE POLICY (ALSO KNOWN AS "ONE-OFF")
2. OPEN POLICY (DECLARATION BASIS)
3. ANNUAL / BI-ANNUAL / QUARTERLY
CERTIFICATE OF INSURANCE ONLY EVIDENCE OF ABOVE

PES OF MARINE CARGO COVERS

1. BASIC CARGO INSURANCE

2. STORAGE COVER
3. STOCK THROUGHPUT INSURANCE
4. CONSEQUENTIAL LOSS INSURANCE
of profit / loss of contract)
5. TRADE DISRUPTION INSURANCE
unable to operate normally)
6. SHIPPERS LIABILITIES

(loss
(business

(dangerous cargoes)

AIN MARINE CARGO CLAUSES

THE MAIN CARGO CLAUSES ARE:

Institute Cargo Clauses which consist of:
Institute Cargo Clauses (A) / Air
Institute Cargo Clauses (B)
Institute Cargo Clauses (C)
Institute War Clauses
Institute Strikes Clauses

C) CLAUSES

INSTITUTE CARGO CLAUSES "C

Cover loss of or damage to the subject matter insured,
reasonably attributable to:

Fire
Fire or
or explosion;
explosion;
Vessel
Vessel of
of craft
craft being
being stranded,
stranded, grounded,
grounded, sunk
sunk or
or capsized;
capsized;
Overturning
Overturning or
or derailment
derailment of
of land
land conveyance;
conveyance;
Collision
Collision or
or contact
contact of
of vessel,
vessel, craft
craft or
or conveyance
conveyance with
with any
any
Discharge
Discharge of
of cargo
cargo at
at aa port
port of
of distress;
distress;

or
or caused
caused by:
by:

General
General average
average sacrifice;
sacrifice;
Jettison.
Jettison.

external
external object
object other
other than
than water;
water;

B) CLAUSES

INSTITUTE CARGO CLAUSES "B

Similar to "C" clauses, but offers additional cover reasonably
attributable to:

Earthquake,
Earthquake, volcanic
volcanic eruption
eruption or
or lightening;
lightening;

or
or caused
caused by:
by:

Washing
Washing overboard.
overboard.
Entry
Entry of
of sea,
sea, lake
lake or
or river
river water
water into
into the
the vessel,
vessel, craft,
craft, hold,
hold,
Total
Total loss
loss of
of any
any package
package lost
lost overboard
overboard or
or dripped
dripped while
while

conveyance,
conveyance, container,
container, liftvan
liftvan or
or place
place of
of storage.
storage.
loading
loading on
on to
to or
or unloading
unloading from
from vessel
vessel or
or craft.
craft.

A) / AIR CLAUSES

INSTITUTE CARGO CLAUSES "A / AIR

Cover against all risks of loss physical* or damage to the subject
matter insured. Words all risks mean fortuitous loss*, except as
specifically excluded:

Willful misconduct of the assured;

Ordinary leakage, ordinary losses in weight or volume or
ordinary wear and tear;
Insufficient or unsuitability of packing or preparation of the
subject matter insured;
Inherent vice or nature of the subject matter insured;
Delay;
Insolvency or financial default of carrier;
Deliberate damage or destruction;
Loss arising from nuclear weapons.

AR / STRIKES CLAUSES

INSTITUTE WAR CLAUSES CARGO

Cover
Cover loss
loss of
of or
or damage
damage to
to the
the subject
subject matter
matter insured,
insured, caused
caused by:
by:

power;
power;

war
war civil
civil war
war revolution
revolution rebellion
rebellion insurrection,
insurrection, or
or civil
civil strife
strife

arising
arising therefrom,
therefrom, or
or any
any hostile
hostile act
act by
by or
or against
against aa belligerent
belligerent

capture
capture seizure
seizure arrest
arrest restraint
restraint or
or detainment,
detainment, arising
arising from
from risks
risks
attempt
attempt thereat;
thereat;
derelict
derelict mines
mines torpedoes
torpedoes bombs
bombs or
or other
other derelict
derelict weapons
weapons of
of

covered
covered under
under 1.1
1.1 above,
above, and
and the
the consequences
consequences thereof
thereof or
or any
any
war.
war.

INSTITUTE
INSTITUTE STRIKES
STRIKES CLAUSES
CLAUSES CARGO
CARGO

Strikers,
Strikers, locked-out
locked-out workmen,
workmen, or
or persons
persons taking
taking part
part in
in labour
labour disturbances,
disturbances, riots
riots or
or civil
civil commotions;
commotions;
any
sacrifice.
any terrorist
terrorist or
or any
any person
person acting
acting from
from aa political
political motive
motive average
average
sacrifice.

HEN A CLAIM OCCURS

1. DO NOT GIVE CLEAN RECEIPTS !!!!

2. ADVISE BROKER / INSURER IMMEDIATELY
3. ACT AS THOUGH UNINSURED
4. MITIGATE LOSS
5. KEEP CONTAINER SEALS / TAKE PHOTOGRAPHS
6. PLACE 3RD PARTIES ON NOTICE
7. ENSURE ONLY APPROVED REPAIRERS ARE USED
8. CAN NOT ABANDON WITHOUT INSURER AGREEMENT

ETTERS OF CREDIT

1. NEGOTIATE REASONABLE CONTRACT OF SALE

2. ENSURE CORRECT TERMS OF SALE APPLY
(INCOTERMS)
3. PROVODE COPY OF LC TO BROKER / INSURER
4. PROVISIONS MUST BE STRICTLY COMPLIED WITH
5. WILL MORE THAN LIKELY NOT MATCH POLICY
6. COPY BLANK ENDORSED

N CONCLUSION

1. UNDERSTAND YOUR INSURANCE NEEDS

2. ENSURE YOU HAVE THE CORRECT COVER
3. READ YOU POLICY
4. EMPLOY A SPECIALIST MARINE BROKER
5. INSURANCE DOES NOT REPLACE COMMON
KNOWLEDGE
6. WHEN IN DOUBT, ACT AS THOUGH UNINSURED

HANK YOU
If you have any questions, please contact
TRIDENT ADVANTAGE CC at:P O Box 7255, Roggebaai, 8012
2nd Floor, Aon House
109 Hertzog Boulevard
Cape Town, 8001
T : +27 (0) 21 802 3333
F : +27 (0) 86 659 4310
E : info@3dent.co.za
W : www.3dent.co.za