5. CONTENTS:
Cargo
Marine Insurance
Marine Reinsurance
Cargo Insurance and its types
Proportional Reinsurance Treaties
Non- Proportional Reinsurance Treaties
Clauses of Clauses
Institute Cargo Clauses (A)
Institute Cargo Clauses (B)
Institute Cargo Clauses (C)
Institute Cargo Clauses (AIR) (excluding sending's by post) 1/1/82
Institute Air Clauses (cargo) 1/1/82
Institute Strike Clauses (cargo)1/1/82
Other Cargo Clauses
Recommendation
Conclusion
Marine Reinsurance treaties and its clauses under cargo insurance
6. This is one of the earliest business forms of
Marine insurance.
Cargo refers to good and merchandise imported
or exported from or to various parts of the world.
Charges depend on types of cargo.
Cargo
7. “Insurance against loss by damage to or
destruction of cargo or the means or instruments
of its transportation whether on land, sea, or air ”
Legal Definition of MARINE INSURANCE
8. Marine Reinsurance
Insurance that is purchased by an insurance
company (the "ceding company“ under the
reinsurance arrangement) from one or more
insurance companies (the "reinsurer") directly or
through a broker as a means of risk management,
INSURANCE OF
INSURANCE
INSURANCE
COMPANY TO
REINSURANCE
COMPANY
CAN BE DONE IN
NO OF WAYS
9. Cargo insurance
Cargo Insurance covers loss and/or damage of cargo while it is in transit between the
points of origin and final destination. Goods may be transported by sea, air and land.
• Land cargo insurance • Marine cargo insurance
Cargo insurance and its types
10. Policies of marine cargo insurance
Open cover
• Must usual type
• Cover a number of consignments
• Permanent policy
• Renewable policy
Specific policy
• Time to time need
• Voyage policy
Contingency policy
• Insurance policy purchased by customer
• Very less premium rate
11. Methods of reinsurance
Treaty PoolsFacultative
Proportional Reinsurance Treaties Non- Proportional Reinsurance Treaties
Quota Share Surplus Excess of loss Excess of loss ratio
12. Treaty reinsurance is the method of reinsurance
predominantly used.
Proportional Reinsurance Treaties
• Under this method of reinsurance , the direct
insurer decides what proportion of the risk they
want to retain and then agree to cede the balance
to the reinsurers under the treaty.
Quota Share Surplus
Treaty Reinsurance
13. Non- Proportional Reinsurance Treaties
Proportional Reinsurance Treaty Proportional reinsurance is concerned with proportions of the value at risk.
Where as non-proportional reinsurance is based on the losses rather than the sums insured.
EXCESS OF LOSS
Catastrophic excess of loss
Risk excess of loss
Excess of Loss Ratio
• Excess of loss ratio
• stop loss reinsurance.
14. Cargo Clauses:
In this section we will examine , in detail , the institute Cargo Clauses (A), (B) and (C )1/1/82 .
Risks covered
Institute Cargo Clauses (A)
Institute Cargo Clauses (B)
Institute Cargo Clauses (C)
Institute Cargo Clause (AIR)
Institute War Clauses (cargo)1/1/82
Institute Strike Clauses (cargo)1/1/82
15. Risks Covered
• The risks Clause in the (A),(B) and (C) clauses, together with the
General Average Clause 2 and the ‘ Both to Blame Collision’
Clause 3 state the risks covered. The cover is subject to the
exclusions set out later in the clauses.
Institute Cargo Clauses (A)
• The Risks Clause in the (A) clauses opens This
insurance covers all risk of loss of or damage to the
subject matter insured…
17. Institute Cargo Clauses (C)
• The most restricted form of cover.
• The same as B, but with minimal
differences of risks covered.
18. Under Institute Cargo Clauses (B) and (C)
• Institute Malicious Damage Clause 1/8/82 ( and the payment of
any additional premium.
• General Average clause
• Both to Blame Collision clause
• Exclusions
• General Exclusion clause
• Unseaworthiness and Unfitness exclusion clause
• War Exclusion Clause
• Strikes Exclusion Clause
20. Institute Cargo Clause (AIR )
• These clauses cover all risks of damage to
the subject – matter insured in a similar
manner to the institute cargo clauses (A)
1/1/82 but, as they are constructed with a
different form of transport in mind, they
do not provide for general average and
salvage charges, nor the ‘Both to Blame
Collisions’ Clause.
21. Institute WAR Clause (Cargo )
Risks covered:
1 war civil war revolution rebellion
insurrection, or civil strife arising therefrom,
or any hostile act by or against a belligerent
power
2 capture seizure arrest restraint or
detainment, arising from risks covered under
1.1 above, and the consequence thereof or any
attempt thereat
3 derelict mines torpedoes bombs or other
derelict weapons of war.
22. Institute Strike Clause (cargo)
• strikers, locked-out workmen, or people average and salvage charges
when incurred to avoid.
• Any terrorist or any person acting from a political motive
23. Other Cargo Clause
• Institute Frozen Meat Clauses
• Institute Frozen Food Clauses
• Institute Coal Clauses
• Institute Bulk oil Clauses
• Institute Commodity Trades Clauses
24. • Institute Natural Rubber Clauses
• Institute jute Clauses
• Institute FOSFA Trades Clauses
• Institute Timber Trade Federation Clauses
• Institute Container Clauses
CONT’D
25. • Basic information
• Request to customer and /or broker the schedule and
project agenda.
• Plan for the project
• Request assistance
• Center of gravity information
• Critical points
• Analysis
• Review all equipments and means of transportation
