Marine Cargo Insurance covers the exposure of cargo to loss or damage whilst being transported between the points of origin and final destination by either sea, air or land.
Maritime transport is one of the safest channels for the movement of goods, however, inevitably there are certain risks that, during their transfer can generate damage or even total loss of cargo. Damage can occur while the ship is in port, or in transit to the warehouse or even at the warehouse itself.
The purpose of marine cargo insurance is to compensate the insured party for the damages goods may suffer, being these risks typical of maritime navigation.
By law, all shipping lines have the responsibility to offer maritime insurance, but these generally have limited coverage, which is why it is advisable to purchase an additional insurance in order to guarantee a more complete coverage.
Why Cargo Owners Need Insurance?
For cargo owners involved in international and domestic trade, marine cargo insurance is an essential. A cargo owner might reasonably expect that a carrier or warehouse operator who has custody of cargo would reimburse the cargo owner for losses to their property, but this is not always the case. Carriers such as steamship lines or airlines are not usually responsible for losses that are unforeseeable and beyond their control.
Carriers are not commonly responsible for the following causes of loss because these are deeming to be their control:
- Fire, unless caused by the actual fault or knowledge of the carrier or warehouseman.
- Stranding, sinking, vessel collision, or striking a submerged object.
- Natural disasters such as a lightning strike or a hurricane.
- Any loss or damage inherent to the goods, such as rust or rot on unprotected metal or fruit.
How to Select the Right Marine Cargo Insurance Broker?
There are many insurance agencies offering marine cargo insurance, but few specializing in logistics and supply chain. Partnering with a specialty insurance broker ensures you are securing the right coverage.
The G.A.P. Vassilopoulos Group ενεργώντας ως Ανταποκριτής (Coverholder) της εταιρείας IGI (International General Insurance Company), παρέχει Θαλάσσια Ασφάλιση Φορτίου στην Κυπριακή Αγορά τα τελευταία 40 χρόνια.
Cover can be provided in accordance to the client’s demands and needs on either a ‘Single Shipment’ policy or on an ‘Open Cover’ policy.
Our policies at GAP Insurance Agency are covered under the Institute Cargo Clauses. These set of Cargo Clauses, although not compulsory, are voluntarily adopted as standard terms by many international marine insurance organisations.
The basic clauses are the following:
Institute Cargo Clauses (A) 1/1/09 (A) 1/1/09
This is the widest cover and it covers loss of or damage to the insured goods as per Institute Cargo Clauses (B) plus accidental external causes such as rainwater, hook damage, malicious damage, breakage, pilferage and theft.
Institute Cargo Clauses (B) 1/1/09
This is a less restrictive cover and it covers loss of or damage to the insured goods as per the Institute Cargo Clauses (C) plus Washing Overboard, Earthquake, Volcanic Eruption, Entry of sea, lake, river water into the vessel/craft/hold/conveyance/container/lift van/ or place of storage damage and total loss of any package lost overboard or dropped whilst loading/unloading from/to the vessel.
Institute Cargo Clauses (C) 1/1/09
This is the most restrictive cover and it covers loss of or damage to the insured goods due to Fire and Explosion, Stranding, Sinking, Capsizing, overturning of a lorry or train, collision, discharge at a port of distress, General Average sacrifice and jettison.
You can contact us at 77 77 77 75 to compare and select the most appropriate marine cargo insurance policyand the G.A.P. Insurance Agency will contact you to discuss further information.