What is covered under

marine insurance
Athaya Shafira/07
Irsyad Dhia R/13
Shella Handayani/23
The marine insurance policy
covers the loss or damage to
property caused due to:

• Natural disasters like cyclone, earthquake,

lightning, etc.
• Man-made disasters like theft, violence, and
piracy of ships.
• Collision, overturning or derailment of land
conveyance.
• Sinking or stranding of ships.
 The marine insurance
covers transits by:

•Water
•Air
•Road or rail
•Registered post or parcel
•Courier
The Marine Insurance covers
the following type of covers :
 02 Institute Cargo Clause B : named peril
basis
Though,this covers is similar to ‘C’ it offers the following additional
covers :
•Lightning, volcanic eruption, earthquake
•Washing overboard
•Entry of river or sea water into the vessel, conveyance, lift van or
place of shortage
•Total loss of any package while loading or unloading from vessel or
craft

Institute Cargo Clause A : it covers the wide

01 Institute Cargo Clause C : named peril

basis
It covers loss or damage caused due to:
coverage as it covers all the perils.
It is possible to extend marine insurance policy to cover a wide
range of industries, including but not limited to:
•Pharmaeutical industry
•Fire or explosion

03
•Electronic industry
•Overturning or derailment of land conveyance •Healthcare industry
•Discharge of cargo at a point of distress and loss •Fine arts
or damage caused by jettison •Consumer good industry
Case on Covers of Marine
Insurance
P.L. Pharma Company regularly exports its medicines to Asian nations. Formed
in 2013, the company has managed to carve a niche for itself in the market.
All shipments are carried via sea route. Last year, a huge consignment was
sent to Sri Lanka which reached the port successfully. However, while
unloading the consignment, a fire broke out on a cargo ship anchored at the
Port. The blaze which started in the morning at around 10 was put out within
an hour by four fire engines who rushed to the spot. Though no casualties
were reported, the consignment worth thousands of dollars engulfed into the
fire.
The million-dollar loss made the company’s top management to
think, is there anything they could have done to curtail the financial
loss?
Solution :
The situation would have been different if the company had bought a
marine cargo insurance policy. This policy covers loss or damages to
the goods during transportation by any means of transport, like air,
water, and rail. In this case, the insurer would have given
compensation to P. L Pharma Company after the latter reported the
loss due to fire.
 What is not covered
under marine insurance
Marine insurance doesn’t offer any
coverage in the following cases :
• Lost or damage due to wilful act of negligence and
misconduct
• Loss or damage due to delay
• Loss or damage due to improper packing
• Financial default or insolvency of owners, charteters,
managers, or operators of vessel
• Loss or damage due to wire, strike, riot, and civil
commotion
• Lost or damage arising from the use of nuclear fission,
weapon, or any other radioactive force.
• 1/4th of collision damage
• Removal or wreck
• Contamination due to radioactive rays
• Attack or damage from biological, biochemical, chemical,
or electromagnetic weapons
Case on Marine Insurance
Exclusions
In 2015, Excel Electronics got a big contract of exporting 500
electronic items, including LED, mobile and washing machine, to
the Eastern nation. Before dispatching, the packaging team
scrutinized the same and the consignment was released only
after getting the green signal from the team.
It took seven days for the consignment to reach the destination.
However, at the time of unloading, the buyer found out that the
consignment was wet. It was due to the negligence of the
packaging team that a substantial part of the consignment got
damaged due to water.
The buyer filed the case against the seller and asked for
compensation. The seller, on the other hand, had a marine
insurance and therefore, approached the insurer for the claim
settlement. However, the insurer rejected the claim as the
damages were caused due to improper packing. As a result,
Excel Electronics incurred all the losses by own.
In a similar case, the G.S Automobile sent a consignment of
automobile tools to a neighboring nation. However, at the time
of unloading, 1/4th of the consignment got damaged. Though
G.S Automobile had a marine insurance; the insurer refused to
offer the cover as the damage fell under the exclusion.
THANK YOU