Cargo insurance is covered under risk policy or floating policies. The cargo may be of any description, for example wares, merchandise, property, goods and so on.
Duration of the risk as attaching from the time the goods leave the warehouse or other place of storage at the placement in the policy for commencement of transit.
The risk then continues during the ordinary course of transit to terminate on delivery.
Cargo insurance has coverage of loss or damage caused by war, civil war, revolution, rebellion, insurrection or civil strife or any hostile act, capture, seizure, arrest, restraint detainment, general average and salvage charges, strikes, riots, etc.
Trade coverage covers the insurance needs of various type of cargoes of general nature.
A number of commodities and foodstuff provide for particular hazards. Institute of London Underwriters (ILU) have adopted uniform trade practices.
Which are followed by other insurers for insurance of cocoa, coffee, cotton, fats oil knots, hids, skins, leather, metal, oil seeds, sugar, tea an: so on are assured under standard policy. There are separate insurance of coal, Jute, Rubber, tanker, bulk oil, frozen products.
All risks clause covers inland Transit risks also for the cargo insurance. Loss or damage are covered if the risks occurred due to:
- Riot, strikes, malicious damage
- Impact by any rail /road vehicle
- Storm, cyclone flood, inundation
- Earth-quake, burglary accidental physical loss or damage.
A special declaration policy (SDP) is a form of floating policy issued to insured that have a large turnover with many and frequent dispatches of goods anywhere within the country by rail or road or in water warp.