The process of transportation includes air freight, ocean freight and overland carriage. The marine cargo insurance is to indemnify the cargo owner and or the financiers such as banks against financial loss arising as a result of physical loss, damage, expenses incurred or liability from the transportation process.
Loss can arise from the perils of the sea such as rough weather, sinking, stranding and collision of the ocean vessel and from fire explosion. Loss can also arise from mishandling, theft, pilferage, non-delivery at the ports or as a result of overturning, collision of and or theft from overland transports.
The insurance policy form and coverage are based on the internationally accepted London wordings. For general cargo by sea, three sets of clauses are available known as the Institute Cargo Clauses 'A' 'B' and 'C', descending in scope of cover and a brief summary is below:-
