Marine Insurance
Marine Takaful is one of the oldest forms of Takaful. Marine Cargo Participant Membership Documents (PMDs) cover loss of and/or damage to the covered goods carried by sea, by air and rail/road transit. Marine Cargo Takaful is divided mainly into three segments.
- Import
- Export
- Inland Transit
The covers with respect to Import and Export are to be provided as per Institute Cargo Clauses A, B and C.
(a) Institute Cargo Clause “A”
It covers all risks of loss or damage to Cargo being transported by Sea or by Air with certain exclusions under the institute cargo clause “A”.
(b) Institute Cargo Clause “B”
It is the intermediate level of cover which provides coverage against loss or damage to the cargo against following perils:
- Fire or Explosion
- Vessel being sunk, grounded or capsize.
- Collision of vessel or conveyance.
- Discharge of cargo at port of distress.
- Earthquake, volcanic eruption or lightning.
- General average sacrifice.
- Jettison or washing overboard
- Damage to cargo due to entry of sea, lake or river water into vessel or craft.
- Total loss of any package lost overboard or dropped while loading to or unloading from vessel.
Under Cargo clause “B” other perils can be extended as required to the Insured by charging as additional premium.
(c) Institute Cargo Clause “C”
It is the basic level of Cover which provides coverage against loss or damage to the cargo against following perils:
- Fire or Explosion
- Vessel being sunk, grounded or capsize.
- Collision of vessel or conveyance.
- Discharge of cargo at port of distress.
- General Average Sacrifice.
- Jettison
(a) Rail/Road Cargo Clause “A”
It covers all risks of loss or damage to cargo except exclusion as mentioned in the Rail/Road Cargo Clause “A”.
(b) Rail/Road cargo Clause “B”
It covers loss or damage to the cargo against the following perils:
- Fire or Explosion
- Overturning or derailment of land conveyance
- Collision or contact of conveyance with any external object other than water
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