24/10/2010
The Greek tanker, transporting kerosene, cashed into the Cyrus container ship off the Netherlands coast on 12 October 2010. As a result, there was a kerosene leak into the sea, however it was swiftly stopped and everybody was uninjured in this accident.
After reading it, it raised a question about maritime insurance. If i were a merchant, how I could be guaranteed and achieve an indemnity from damages or loss of goods. I tried finding out the information from the internet, then recognised that marine cargo insurance is definitely essential for most international trade, but firstly I will talk about generally 3 institute cargo clauses as follow as;
1. The Institute Cargo Clause 'A' will cover all risks that are caused by any fortuitous, unforeseen and unintended event, except some specific clauses such as wrong packing and unseaworthiness of ship. Moreover, general average, salvage charges, not arise from mentioned exclusion, and compensation for the Assured's liability under "Boths to Blame Collision" Clause are insured as well.
2. The Institute Cargo Clause 'B' will cover damage to or loss of insured property from definitely specified causes. this term is divided into 3 groups of damage or loss insurance; (1) loss or damage from mentioned causes, such as explosion, collision and volcanic eruption. (2) loss or damage is caused by general average sacrifice, making vessel lighter by jettison, washing overboard and the entry of sea lake or river water into vessel craft and so on. (3) total loss of any package lost overboard or drop while unloading or loading. If loss or damage arises from the following mentioned clause, it will not be insured. Meanwhile, this policy will not cover some exclusion, such as strikes or loss or damage caused by the intention of the Assured.
3. The Institute Cargo Clause 'C' will cover risks as following causes. (1) loss of or damage to insured property is created from danger such as fire and explosion or sunk. (2) loss or damage that is caused by jettison and general average sacrifice. Furthermore, this term has the same exclusion with the institute clause 'B'.
Find an in-depth information : BBC NEWS EUROPE and Insurance Law and Practice
P.S. General average : An Ocean Marine coverage meaning a partial loss which has resulted from the voluntary and deliberate sacrifice of some cargo for the benefit of all concerned, and which must be shared by all parties (owners of ship, cargo and freight) in proportion to their interest.
Salvage : 1. Property taken over by an insurance company to reduce its loss; 2. Award recoverable by salvors under maritime law
so interesting post .
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