Ocean Marine Cargo Transportation Insurance
OCEAN MARINE CARGO TRANSPORTATION INSURANCE
This insurance covers the risks of loss or damage to the cargo caused by Natural Hazard, Fortuitous Accidents or external reasons during the marine cargo transit.
 
SCOPE OF COVER
The goods or cargoes in transit.
 
COMMON PROVISIONS
Ocean marine cargo clauses
Free From Particular Average (F. P. A. )
– total or Constructive Total Loss of the whole consignment hereby insured caused in the course of transit by natural calamities:
   heavy weather, lightning, tsunami, earthquake and flood. 
– total or Partial Loss caused by accidents the carrying conveyance being grounded, stranded, sunk or in collision with
   floating ice or other objects as fire or explosion .
– partial loss of the insured goods attributable to heavy weather, lightning and/or tsunami, where the conveyance has been
   grounded, stranded, sunk or burnt. irrespective of whether the event or events took place or after such accidents.
– partial of total loss consequent on falling of entire package or packages into sea during loading, transshipment or discharge.
– reasonable cost incurred by the insured on salvaging the goods or averting or minimizing a loss recoverable under the Policy,
   provided that such cost shall not exceed the sum insured of the consignment so saved.
– losses attributable to discharge of the insured goods at a pert of distress following a sea peril as well as special charges
   arising from loading, warehousing and forwarding of the goods at an intermediate port of call or refuge.
– sacrifice in and Contribution to General Average and Salvage Charges.
– such proportion of losses sustained by the shipowners as is to be reimbursed by the Cargo Owner under the Contract of
   Affreightment Both to Blame Collision clause.
 
With Average (W. A. )
– aside from the risks covered under F. P. A. condition as above, this insurance also covers partial losses of the insured goods
   caused by heavy weather,lightning, tsunami, earthquake and/or flood.
 
All Risks
– aside from the risks covered under the F. P. A. and W. A. conditions as above, this insurance also cover all risks of loss of or
   damage to the insured goods whether partial or total, arising from external causes in the cause of transit.
 
Exclusions:
– loss or damage caused by the intentional act or fault of the insured. 
– loss or damage falling under the liability of the consignor. 
– loss or damage arising from the inferior quality or shortage of the insured goods prior to the attachment of this insurance.
– loss or damage arising from normal loss,inherent vice or nature of the insured goods , loss of market and/or delay in
   transit and any expenses arising there from..。
– risks and liabilities covered and excluded by the ocean marine (cargo) war risks clauses and strike , riot and civil commotion
   clauses of this Company.
 
ICC (A) 
Scope of responsibility
– It adopts "all risks reducing exclusions" method. The insurer shall cover all risks except the listed “exclusions”.
 
Exclusions
– General exclusions: loss or expense caused by willful act or gross negligence of the Insured;loss of or damage to the
   property insured itself or expenses resulting  from wear and tear, inherent , latent defect or delay, loss or expense arising
   from insolvency or financial default of the owners, charterers of the vessel; any loss or expense due to use of atomic or
   nuclear weapons.
– Unseaworthiness, discomfort exclusions: In the loading of subject matter, the insured and the employees have known
   the unseaworthiness of the ship, vessel, conveyance and container etc.
– War exclusion clause: war, warlike operation, hostilities, armed conflicts, terrorism, conspiracy insurrection, coup d’etat;;
   arrest, detention etc.(except pirates); drifting mines, torpedoes
– Strike exclusion clause: the loss and expense caused by the strikers and workers in the process of strike and shutdown. 

 ICC (B) 
Scope of responsibility
Underwriting approach is to adopt the method of "listed risk", namely listing all the risks covered by the insurer. Subject matter can be reasonably attributed to the loss of or damage of any of the following risks, the underwriter is borne for compensation:
– fire and explosion;
– ship or barge grounding, stranding, sinking or capsizing;
– overland transportation capsizing and derailing;
– ship, barge or conveyance collide with external objects beyond the limits of water;
– discharging of cargo at the shelter port;
– earthquake, volcano,lightening;
– sacrifice of general average;
– Jettison of cargo;
– washing overboard;
– water, lake or river water get into the ship, barges, conveyance, container, large shipping box or storage place;
– total loss of cargo due to falling or flopping in the process of discharging.
 
Exclusions
Exclusions of ICC(B)  and ICC(A) is almost the same but there are two differences: 
– ICC(A) is not liable for the willful act or illegal loss and expenses caused by the insured, but other people’s willful loss and
   subject matter damage or other losses shall be compensated, but ICC(B) is not liable for it.
– ICC(A) adds piracy in the risk list but ICC(B) is not responsible for it.
 
 ICC (C) 
Scope of responsibility
This insurance covers”vital accident”instead of “natural hazard and unimportant accident. It covers:
– fire and explosion;
– ship or barge grounding, stranding, sinking or capsizing;
– overland transportation capsizing and derailing;
– discharging of cargo at the shelter port;
– sacrifice of general average;
– jettison of cargo
 
 Exclusions
– The “Exclusions” of ICC(C)  and ICC(B) is the same.
 
WAY OF COVER 
· single coverage: Fill in the insurance application, issue the insurance policy and settle premium for each transit, which is
  suitable for rarely happened cargo transportation.
· open policy: It provides blanket cover against loss or damage to all goods transported during a stated period(normally
   one year). Under this terms, the insured is required to periodically provide the insurer with the description, quantity and
   value of goods shipped during that period. It has several merits:
  – simplify the formalities, avoid troubles of successive coverage
  – avoid omission and errors
  – get preferable insurance premium
 
* For further details, please refer to the insurance clauses.
 

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