When goods cross the border, it is no longer Goods In Transit but Marine Cargo Insurance.

There are three levels of cover under Marine Cargo Insurance:- Institute Cargo A, Institute Cargo Clause B and Institute Cargo Clause C.

Institute Cargo Clause C is the most restrictive, providing cover for loss of or damage to the property being conveyed only when the conveying vehicle/truck/lorry / train is affected by overturning, collision, or fire/explosion damage, including loss or damage to the goods at the port of distress, loss by general average sacrifice or jettison. This cover is ideal where items transited are of a brittle nature (fragile items) and can break easily. Therefore, there is no cover unless the conveying truck etc. is affected by fire, collision, etc.

Institute Cargo Clause B provides cover for all perils under Institute Cargo Clause C plus washing overboard, sea/lake/river water and sling losses (i.e. losses during loading and unloading of the package)

Institute Cargo Clause A is the widest level of Marine Cargo insurance, providing cover on “all risks” basis.

It should be noted that the following covers are only available under Institute Cargo Clause A:-

  • Malicious damage
  • Theft
  • Pilferage