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Marine Cargo Insurance
Frequently Asked Questions
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  1. What is Marine Cargo insurance?
    It is a contract evidenced by a policy issued covering individual shipments from named starting point to named final destination point. The policy will compensate the assured for loss or damage to cargo during transit and therefore will offer complete financial protection for carriage of goods by sea, air, road or rail.
    Marine Cargo Insurance will provide cover from the port of loading to the final warehouse. Marine Cargo Insurance policies are issued whether the carriage of goods is by sea or air and extends cover for inland transit to the final warehouse. Generally premiums are lower for air cargo insurance than sea cargo insurance.


  1. Under the basic principles of Marine Insurance, what perils are covered?
    The scope of cover in marine cargo insurance is defined under the Institute Cargo Clauses and are mainly ICC(A), ICC(B) and ICC(C). These covers may at the request of the assured be extended to cover Institute War Clauses and Institute Strikes Clauses at an additional premium. There are standard exclusions incorporated in each of the above covers.


The three basic forms of coverage known as Institute Cargo Clauses A, B and C.

      1. Institute Cargo Clause (A): Is an unnamed perils clause
        This is the cover that we offer and is the widest form of cover under Marine Cargo Insurance in so far as it relates to the perils covered. It is on all risks basis and all risks of loss or damage to insured cargo are covered except those excluded e.g. willful misconduct of the insured, ordinary leakage, unseaworthiness, Inherent Vice.

      1. Institute Cargo Clause (B): Named Peril basis.
        This provides cove for:
          1. Loss or damage attributable to:
            1. Fire or explosion
            2. Stranding, grounding, sinking, capsizing
            3. Overturning/derailment of land conveyance
            4. Collision or contact of vessels
            5. Discharge of cargo at port of distress
            6. Earthquake, volcanic eruption or lightening.
          2. Loss or damage caused by:
            1. General average sacrifice
            2. Jettison
            3. Washing overboard
            4. Entry of sea water
            5. Total loss of package overboard during loading/unloading.
          3. General Average
          4. Both to blame


      2. Institute Cargo Clause (C): Named Peril basis.
        This is the most restricted clause and covers only: loss or damage reasonably attributable to:
          1. Fire or explosion
          2. Vessel or craft being stranded grounded sunk or capsized
          3. Overturning or derailment of land conveyance
          4. Collision or contact of vessel craft or conveyance with any external object other than water
          5. Discharge of cargo at a port of distress and loss or damage caused by – General Average Sacrifice / Jettison.


      3. General Exclusions under (A), (B), (C)
        Wilful misconduct of the insured, ordinary leakage, unseaworthiness, Inherent Vice of the subject matter, war, strikes. Note that War and strikes can be extended by payment of additional premium.

  1. What is the Basis of Sum Insured?
    Marine Insurance policies are issued on 'agreed value basis' and should be based on invoice amount plus incidental costs comprising of customs duty, clearing charges, inland freight and VAT. However incidental costs should not exceed 10% of the commercial invoice amount.
  1. What documentation do I require to get Marine Cargo Insurance?
      1. Commercial Invoice
      2. Bill of lading
      3. Copy of I.D & P.I.N


  2. Are duties on lost or damaged goods covered?
    Duties are taken into account in the basis of valuation in arriving at the sums insured and therefore the same is covered.


  3. What are the responsibilities of the buyer and seller with respect to insurance?
    Only the owner of the goods can insure the goods or any party named in the bill of lading which is a document of title. At the time of the claim, the assured must establish insurable interest in the goods.


  4. What perils are excluded?
    This cover does not cover loss, damage, liability, destruction, cost or expense of any nature directly or indirectly caused by or contributed by or arising from any of the following:

      1. Consequential loss/delay exclusion
      2. Cyber-attacks exclusion clause
      3. Wilful misconduct of the insured,
      4. ordinary leakage,
      5. unseaworthiness,
      6. Inherent Vice of the subject matter


  5. What else makes us different from our competitors?
    We at Aellum Insurance Services are committed to delivering a competitive tailored insurance product that not only is very competitive but exactly what you need. Our Marine Cargo Insurance can be obtained from our web based CF PRO Portal, a clearing & forwarding web based software, making it simple and straightforward way to complete all transactions under one platform and is easily accessible worldwide. Unlike other platforms, we provide you with the insurance covers from a range of reputable insurance companies with a proven track record to choose from.


  1. Definitions relating to Marine Insurance:
    In this policy, certain words have special meanings. They have the same meanings wherever they appear. The words are:
      1. Conveyance(s)
        Means any ship, vessel, aircraft, rail, road or air transport used to transport the Goods

      2. Subject Matter Insured/Goods
        Means the type of goods detailed in the policy schedule.

      3. Assured
        Means the insured in the policy schedule

      4. Reshipment
        Circumstances beyond the control of the assured where the contract of carriage is terminated at a port or place other than the final destination is allowed subject to additional premium.

  1. Is Trans-shipment allowed?
    Yes. There is no additional premium charged for transshipment at major trading ports.
    Your relationship with Kenya Orient Insurance means a lot to us and it's one we want you to be


  1. What should I do in event of claim?
    Where there is a is a loss or damage which may result in a claim under this policy, you must take the following steps:
    1. Notify Aellum insurance service about the event as soon as possible together with estimate. This enables us to appoint a surveyor to establish the nature of the cause of the loss or damage and the extent of the loss
    2. Notify the agent or representative of the carrier. This preserves the rights which the consignee may have against the carrier, bailees or other third parties for the loss occasioned by breach of the contract of carriage specifically:
        1. Do not release those parties from liability.

        2. Deliver to the parties responsible notice of intention to claim within 3 days of delivery.

        3. Do not give clean receipts where the Goods are in doubtful condition by consignee to the carrier.

        4. Letters of protest may be issued immediately where the goods are in damaged condition. Should be done within 3 days.

        5. Where the delivery is made by container, ensure that the seals are examined immediately by an authorized official.

        6. If a container is delivered damaged or with broken or missing seals or other seals as stated in the shipping documents, note the delivery docket accordingly and retain the seals for subsequent identification.

        7. Upon discovery of any loss or damage, apply immediately for surveys by the carriers or other bailees to be conducted within 3 days.

        8. Inform the police as soon as possible after a theft has occurred.

        9. In the event of a General Average or Salvage Contribution arising under this policy, contact us or our nominated settling agent before signing any general average or salvage bond.


    3. Submit as soon as possible all supporting documentation and correspondence regarding the event including invoices, statements, or other documents evidencing the amount being claimed.

    4. Notify any sub-carrier or other bailees before the goods get to the final destination

    5. Notify the Port authority. It is the duty of assured to ensure that all rights are properly preserved and exercised

    6. Take reasonable measures to avoid or minimize the loss, damage or expense.


  1. What documentation is required to make a claim?
    You are required in the interests of prompt settlement of any claim under the policy to submit all available supporting documentation without delay including the following documents:
    1. Copy of the policy schedule

    2. Bills of lading or Contracts of carriage including consignment note(s) or Airway bills

    3. Copies of invoices, Parking lists, shipping specifications, weight notes or other documents indicting quantity and value

    4. Correspondence exchanged with any third party regarding their liability for the loss or damage

    5. Master’s protest/ship log – For a washing overboard claim

    6. LOB certificate – for packages lost overboard

    7. Non delivery certificate- Ships out turn/ landing a/c

    8. Short lading certificate – Issued by port authority


  1. What is "General Average?"
    General average arises when property involved in a common maritime adventure is voluntarily sacrificed in time of peril for the purpose of preserving the adventure or any extra ordinary expenditure is incurred for a like purpose.
    What this means is that, during the voyage, the property of one party may be sacrificed to save the rest. For example, a container on the vessels deck might have to be dumped overboard to stabilize the ship. Following such a sacrifice, when the ship safely reaches port, the fortunate party whose cargo was untouched should contribute to the loss of the party whose property was sacrificed. The contribution is levied on arrived values of the ship, cargo and freight.
  1. What is the Subrogation Clause?
    When we settle a claim, we may pursue recovery rights against the carrier or any other third party who caused loss or damage to the Goods. You agree that:
      1. We may act in Your name in such recovery action
      2. You will give us reasonable assistance with such actions.


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