The
Paramount Marine Cargo Insurance Policy is designed to
insure merchandise from the time it leaves the seller’s
premises until it reaches the buyer. It encompasses all modes
of conveyances, be it by land, sea or air. The Marine Cargo
Individual Policy covers a specific shipment and is used by
those not regularly engaged in foreign trade, while the Open
Policy automatically covers all shipments, even in the event
of unreported shipments. The Paramount Marine Cargo Insurance
Policy provides covers for both inter-island and international
voyages.
PERILS
COVERED
The insured can buy coverage
against named or against "all risks". The most cornmon
insuring terms are:
T.L.O. or Total Loss Only - That is to
say that if a policy is issued granting cover against total
loss only, before any claim will be paid, the insured vessel
must be proven to have totally lost by one of the perils
insured against. This type of cover is usually granted in
respect of shipments by sailing vessels.
Institute Cargo Clauses (A) - The insurance
covers all risks of loss of or damge to the subject-matter
insured except loss or damage attributable to willful misconduct
of the assured, ordinary leakage, ordinary loss in weight
or volume or ordinary wear and tear, insufficiency of or
unsuitability of packing, inherent vice, delay, financial
insolvency or financial default of the owners managers charterers
or operators of the vessel and use of any weapon of ware
employing atomic or nuclear fission and/or fusion. War (Waterborne
risk only) and Strikes, Riots and Civil Commotion are also
excluded but may be bought at an additional premium.
Institute Cargo Clauses (B) - The insurance
covers loss of or damage to the subject-matter insured 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, earthquake volcanic
eruption or lightning, general average sacrifice, jettison
or washing overboard, entry of sea lake or river water into
vessel craft hold conveyance container liftvan or place
of storage and total loss of any package lost overboard
or dropped whilst loading on to, or unloading from vessel
or craft.
In addition to the losses excluded under Clause (A) the
policy does not cover deliberate damage or deliberate
destruction of the subject-matter insured or any part
thereof by wrongful act of any person, unseaworthiness
or unfitness of vessel craft conveyance container of liftvan
for the safe carriage if assured is privy to such unseaworthiness
or unfitness at the time of loading.
Institute Cargo Clauses (C) - The insurance
cover is similar to Clause (B) but excludes earthquake volcanic
eruption or lightning, entry of sea lake or river water
into vessel craft hold conveyance container liftvan or place
of storage and washing overboard. All exclusions applicable
to Clauses (A) and (B) apply to this clause.
TYPES OF MARINE CARGO
POLICIES
INDIVIDUAL POLICY - This policy is issued
to cover a specific shipment. This form is used by those
not regularly engaged in foreign trade, for example, by
individuals shipping household goods or personal effects.
OPEN POLICY - An open policy is a contract
which remains in force until cancelled and under which individual
successive shipments are reported or declared. Once arranged,
the policy automatically covers all shipments. While the
insured must report such shipments to the insurance company,
and pay premium at rates agreed to, the policy even covers
in the event that there is an unintentional failure to report
a particular shipment or shipments.
