Today, business is no longer restricted to boundaries. A marine insurance policy caters to both importers' and exporters' needs, the coverage is comprehensive and flexible with international shipments protected from the time the goods leave the seller's warehouse until they reach the buyer's warehouse. It is possible that your cargo may get damaged by stranding, grounding, sinking, collisions, rough weather, entry of sea or river water, jettison, washing overboard, ship's sweat, hook damage, theft or pilferage, war, strikes, riots or civil commotion.
The party usually responsible for insuring the goods is determined by the sales contract. Terms of sales are FOB / C & F, CIF. Marine insurance policies are issued on an agreed value basis. Usually Cargo Insurance covers transits by sea, air, road, rail, registered post , parcel, courier or a combination of any of these.
Marine cargo policies are based on Institute Cargo Clauses, which are ICC (A) – ALL RISK, ICC (B) – WIDER RISK and ICC (C) – BASIC RISK.
ICC (A) is based on “ALL Risks” while (B) and (C) are based on named perils. All three clauses have certain exclusions. Institute War Clauses are also available in addition to above cargo clauses. The above are all internationally recognized clauses.