Marine Cargo PDF Print E-mail
Products - General



Marine Cargo may be effected by either the buyer or seller of goods depending on the terms of the contract of sale.

The types of contracts entered may either be FOB, C & F or CTF basis.

Types of contract :

1.
FOB (Free On Board) – The Seller delivers the goods sold onto the vessel and his interest ceases. The Buyer is responsible for Takaful of the goods the moment they are on board the vessel and is also liable for the payment of freight charges to the Shipping Company.
2.
C & F (Cost and Freight) – The Seller is responsible for freight charges until the goods are delivered at the destination. The Buyer would have to take Takaful for the transit of these goods.
3.

 

CTF (Cost Takaful and Freight) – The Seller is responsible for all charges, including Takaful contribution and freight charges, until the goods are delivered at the destination, whereupon his contract with the purchaser ceases. The price charged by the Seller includes Takaful and freight charges.

Scope of cover:

Institute Cargo Clauses (A)
All risks of loss or damages to the subject matter other than those excluded. 

Institute Cargo Clauses (B)
Covers loss or damage caused by the following perils: 
  • Fire or Explosion
  • Stranding, grounding, sinking or capsizing of the ship
  • Overturning or derailment of the land conveyance
  • Collision
  • Discharge of cargo at the port of distress
  • Earthquake, lighting and volcanic eruption
  • Entry of sea, lake or river water into the vessel or place of storage
  • Packages totally lost during loading and unloading from the ship
  • Jettison
Institute Cargo Clauses (C)

This is a very restricted cover i.e.

  • Fire or Explosion
  • Stranding, grounding, sinking or capsizing of the ship
  • Overturning or derailment of the land conveyance
  • Collision
  • Discharge of cargo at the port of distress
  • Earthquake, lighting and volcanic eruption
  • Entry of sea, lake or river water into the vessel or place of storage
  • Packages totally lost during loading and unloading from the ship
  • Jettison

Exclusions:

  • Willful misconduct of the assured/participant
  • Ordinary leakage or loss in weight or volume, wear and tear
  • Inherent vice or nature of the goods
  • Delay (even caused by covered perils) 
  • Insolvency of the ship owners/managers/ charters/operators 
  • Radioactive or nuclear risks
  • Unseaworthiness of the ship