Marine Insurance

Marine Cargo insurance is required by the importers, exporters, traders, banks financing the imports/exports and other persons interested in the cargoes 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. Cover is available for all types of goods for carriage by sea, air, by Rail, or other land conveyance and is tailored according to the risks involved to the needs of the customers. The Institute of London Underwriters have devised 3 main sets of Cargo Clauses namely ICC (A), ICC (B) and ICC (C) with same cover for risks of General Average, salvage charges and collision liability but narrowing progressively in other risks coverage. Risks of WAR & SRCC are also protected as provided in the clauses to ensure maximum cover to the cargo shipments.

Institute Cargo Clauses (A)

It covers all risks of loss or damage to the insured goods except where the loss is excluded by the clauses. The risks are not specified and therefore it provides the broadest cover effective from the time the goods leave the premises for the commencement of the transit.

ICC(A) is considered suitable for insurance of goods, likely to suffer loss or damage, apart from major risks due to breakage, scratching, denting, theft, pilferage, non-delivery water damage including rain water, leakage, and contamination etc.

It is preferred choice for insurance of a very large variety of items of diverse nature including Rice, Pulses, fruits, vegetables, coffee, tea, seeds medicines, liquids /chemical in bulk or in drums and casks, paper, fragile goods – plateglass, crockery etc, industrial plants textile machinery, spare parts, instruments, electronic goods, air conditioners, computers, television sets, refrigerators, new motor vehicles etc.

Institute Cargo Clauses (Air)

It provides the widest cover as in marine (A) clauses. The ‘General Average’ and ‘both to blame collision’ clauses are omitted being not relevant to air transit. The time limit after unloading from the aircaraft is 30 days compared with 60 days after discharge of cargo from the vessel in marine clauses (A). The unfitness (aircraft) exclusion is incorporated in the General Exclusions Clause.

• THE LOSS MUST BE THE RESULT OF FORTUITOUS CAUSE
• INEVITABLE LOSS IS NOT COVERED

RISKS COVERED BY (B) and (C) Clauses

Risks Common in (B) and (C) Clauses

Loss or damage reasonably attributable to:-

• Fire or explosion
• Vessel or craft being stranded, grounded, sunk or capsized
• Overturning or derailment of land conveyance
• Collision or contact of vessel, craft or conveyance with any external object other than water
• Discharge of cargo at a port of distress
• General average sacrifice
• Jettison

Loss or damage reasonably attributable to:-

• Earthquake, volcanic eruption or lightning

Loss or damage caused by:-

• Washing overboard
• Entry of sea, lake or river water into vessel craft hold, conveyance,container, liftvan or place of storage.
• Total loss of any package lost overboard, or dropped whilst loading on to or unloading from, vessel or craft.

Institute Cargo Clauses (B)

As displayed above the ICC(B) cover includes all the risks of ICC (C) and certain additional risks of lightning, earthquake, volcanic eruption, washing overboard and water damage caused by entry of sea, lake or river water. A total loss of any package is covered when lost overboard or dropped during loading or unloading from the vessel or craft. The cover is suited to items less vulnerable to general types of damages, such as heavy machinery, steal products, goods in packed bales, equipments, old vehicles etc.

Institute Cargo Clauses (C)

It is designed to cover major perils of fire, stranding, sinking ,collision, and includes losses resulting from accidents to land conveyances. Sea water damage to the goods is recoverable when it is reasonably attributable to vessel or craft sinking or capsizing. It is suitable for insurance of cargoes heavy in volume – low in value such as timber, iron ore, billets, steal rods, bars, girders etc.

Inland Transit Insurance

The cover is required for dispatch of goods during transit from any place to any other location upto destination within Pakistan. The cover is provided by Rail/Road Cargo Clauses (A) & (B) for inland transit.

General Exclusions common in ICC (B)&(C)

• Loss damage or expense attributable to wilful misconduct of the Assured.
• Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured.
• Loss damage or expense caused by insufficiency or unsuitablility of packing or preparation of the subject-matter insured. Packing shall be deemed to include stowage in a container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by the Assured or their servants.
• Loss damage or expense caused by inherent vice or nature of the subject-matter insured
• Loss damage or expense proximately caused by delay.
• Deliberate damage to or deliberate destruction of the subject-matter insured or any part thereof by the wrongful act of any person (s).
• Loss damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

General Exclusions of ICC (A)

With the exception of exclusion (7) above all other exclusions are applicable to ICC (A)

Other Exclusions.

• Unfitness of conveyance
• War exclusions
• SRCC exclusions

Please download the following Clauses for perusal to enlighten further with respect to the Coverage, Exclusions, duration of cover, Termination of Contract of Carriage, insurable interest, forwarding charges, Constructive Total Loss, Increase in values during transit, Duty of Assured etc.

• Institute Cargo Clauses (A)
• Institute Cargo Clauses (B)
• Institute Cargo Clauses (C)
• Institute War Clauses (Cargo)
• Institute Strikes Clauses (Cargo)
• Institute Cargo Clauses (Air) (Excluding sendings by post)
• Institute War Clauses (Air Cargo) (Excluding sending by post)
• Institute Strikes Clauses (Air Cargo)
• Institute War Clauses ( sendings by post)