Marine Insurance

Marine Cargo insurance is required by the Importers, Exporters, Traders, and Banks for import/export financing and other person who is interested to send some cargo from one place to another, against loss or damage during transit from the place of origin in Pakistan or abroad up to delivery at final destination. Security General Insurance Co. Ltd. is rendering service of insurance at most economical cost. Standard Marine Cover is available for all types of cargo by Sea, Air & Rail/Road and it is tailored according to the risks involved and to the customer’s needs. The Institute of London Underwriters have devised three (3) main risk coverage standards (high to low) for Cargo namely ICC Clause (A), ICC Clause (B) and ICC Clause (C). Coverage against WAR & SRCC is also provided to ensure maximum protection to the cargo.

The insurance policy under Cargo Clauses (C) covers loss of damage to goods caused by: i) Fire or explosion, ii) Stranding, grounding, sinking or capsizing of vessel, iii) Overturning or derailment of land conveyance, iv) Collusion or contact of vessel, craft or conveyance etc. with any external object other than water, v) Discharge of cargo at a port of distress, vi) General average sacrifice and vii) Jettison.

INSTITUTE CARGO CLAUSE (B)

In addition to risks covered under Institute Cargo Clause (C) the following risks are covered by policies to which Cargo Clause (B) is attached: i) Loss of or damage to the goods attributable to earthquake, volcanos, eruption or lightning, ii) Washing overboard, iii) Loss of or damage to the goods caused by entry of sea, lake or river water into the vessel, craft, hold, conveyance container, lift van or place of storage, and iv) Total loss of any package lost overboard or dropped whilst loading on to or unloading from vessel or craft.

EXTRANEOUS PERILS

The policy issued on Institute Cargo Clause (B) can be extended to cover any of the following non-maritime extraneous perils by payment of suitable extra premium, i) Theft, pilferage and non-delivery, ii) Fresh and / or rain and / or river water damage, iii)Hook, oil, mud, acid and damage by other cargo, iv) Heating and sweating, v) Breakage, denting, chipping, scratching and blending, vi) Leakage and vii)Bursting and tearing

INSTITUTE CARGO CLAUSE (A)

This Insurance covers all risks of loss of or damage to the subject goods insured except general exclusion, Unseaworthiness / unfitness war exclusion and strikes exclusion clauses. This is the widest cover and hence is a standard condition for import LCs issued by the Bank

WAR AND STRIKE (SRCC) COVER

The risks of loss etc. not eligible under the war and strike exclusion clauses can in addition to Institute Cargo Clauses A, B or C be covered by payment of additional premium. The cover is granted by attaching Institute War Clauses (Cargo) and Institute Strike Clauses (Cargo) to the policy of insurance. The cover is provide protection to the cargo dispatching from one place to any other place within the Pakistan by Rail/Truck/Trailer or Plane. The Institute of London Underwriters have devised main risk coverage for Cargo namely ICC Rail/Road Clause (A), ICC Rail/Road Clause (B) with same protection but narrowing progressively in other perils coverage. Coverage against SRCC is also provided to ensure maximum protection to the cargo.

PERIOD OF COVER

i. The insurance cover is available for the entire period of transit from the time the goods leave the warehouse at the place of commencement and continues during such transit including deviation. The cover terminates on delivery of the goods, at the warehouse at the named destination or on expiry of 60 days (sea consignment) / 30 days (air consignment) on completion of discharge from the vessel at final port. ii. The Bank as a standard practice, specifies marine insurance to be taken on ‘warehouse to warehouse’ basis. As per the ‘Transit Clause’, if goods are not delivered within the time limit, cover ceases on expiry of 60/30 days and would have to be appropriately extended. iii. The Institute Cargo Clauses provides warehouse to warehouse cover, unless specifically deleted