How many types of marine Insurance Policies are there? Different clauses of marine insurance policies, Scope of cargo insurance policy and how does marine Insurance policies work?
The shipper or insured covers the risks depending on the terms of letter of credit/ export order. The Institute of London Underwriters has drawn up the different clauses in marine insurance policy in respect of risk coverage. The risk coverage is done in terms of various institute cargo clauses. Different marine insurance policies with different risk coverage are :
Institute Cargo Clause A: This policy covers all the risks of loss or damage to goods. This is the widest cover.
Institute Cargo Clause B: This policy covers risks less than under clause ‘A’.
Institute Cargo Clause C: This policy covers lowest risks.
War and Strikes, Riots and Civil Commotion (SRCC) clause is excluded in all the above policies. These risks can be covered by specifically asking for, paying additional premium
.