What if a whole container simply disappeared? Marine cargo insurance turns that worry into precise coverage. From the new ICC(A/B/C) clauses to the old A.R · W.A · F.P.A, pick the one of six conditions that best fits your cargo. Compare quotes from 6 insurers at once — 30 seconds is enough.
Marine cargo insurance is a non-life policy covering the risk of loss or damage to goods carried by sea, air or multimodal transit.
Depending on the trade term (Incoterms), it covers the risk from the seller's warehouse to the buyer's warehouse, and the sum insured is generally set at CIF × 110%.
International cargo clauses originate from Lloyd's S.G. Policy of 1779 in England, developing into the old clauses (ICC) in 1963 and the new clauses (ICC) in 1982.
The standard marine policy form used at Lloyd's. Its archaic wording often led to interpretation disputes.
The (old) Institute Cargo Clauses, comprising ICC(F.P.A), ICC(W.A) and ICC(A/R).
The new Institute Cargo Clauses, comprising ICC(C), ICC(B) and ICC(A), used as standalone clauses.
Both the 1963 old clauses and 1982 new clauses are in use, applying English marine insurance law as the governing law.
A side-by-side view of which risks are covered under the three old clauses (A/R, W.A, F.P.A) and the three new clauses (A, B, C).
| Risk / type of loss | Old clauses | New clauses | ||||
|---|---|---|---|---|---|---|
| A/R | W.A | F.P.A | A | B | C | |
| Fire / explosion | ○ | ○ | ○ | ○ | ○ | ○ |
| Stranding, grounding, sinking or capsizing of vessel/craft | ○ | ○ | ○ | ○ | ○ | ○ |
| Overturning or derailment of land conveyance | ○ | ○ | ○ | ○ | ○ | ○ |
| Collision or contact with another object | ○ | ○ | ○ | ○ | ○ | ○ |
| Discharge of cargo at a port of distress | ○ | ○ | ○ | ○ | ○ | ○ |
| General average sacrifice / jettison | ○ | ○ | ○ | ○ | ○ | ○ |
| Earthquake, volcanic eruption, lightning | ○ | ○ | × | ○ | ○ | × |
| Risks during loading, discharge or transhipment | ○ | △ | △ | ○ | ○ | × |
| Washing overboard | ○ | ○ | × | ○ | ○ | × |
| Sea/lake/river water ingress (wetting) | ○ | end. | end. | ○ | ○ | × |
| Loss overboard during loading/discharge (per package) | ○ | end. | end. | ○ | ○ | × |
| Theft, non-delivery, rain/fresh-water wetting, breakage, bending, leakage, shortage | ○ | end. | end. | ○ | × | × |
| Any other fortuitous external cause (all risks) | ○ | × | × | ○ | × | × |
| Wrongful or malicious act by a third party | ○ | × | × | ○ | × | × |
○ total & partial loss covered / △ total loss per package covered / end. = covered when a separate endorsement is added / × excluded
Incoterms, published by the International Chamber of Commerce (ICC), are terms of the sale contract — not the carriage contract. The trade term determines whether the seller or the buyer is the party that takes out insurance.
| Term | Meaning | Risk transfer point | Insuring party |
|---|---|---|---|
| Group E — departure | |||
| EXW | Ex Works | On leaving the works | Buyer |
| Group F — main carriage unpaid | |||
| FCA | Free Carrier | On handover to the carrier | Buyer |
| FAS | Free Alongside Ship | When placed alongside the ship | Buyer |
| FOB | Free On Board | On delivery over the ship's rail | Buyer |
| Group C — main carriage paid | |||
| CFR | Cost and Freight | On delivery over the ship's rail | Buyer |
| CIF | Cost, Insurance, Freight | On delivery over the ship's rail | Seller |
| CPT | Carriage Paid To | On handover to the carrier | Buyer |
| CIP | Carriage and Insurance Paid To | On handover to the carrier | Seller |
| Group D — arrival | |||
| DDP | Delivered Duty Paid | On delivery at the named destination | Seller |
| DAT | Delivered at Terminal | On unloading at the named terminal | Seller |
| DAP | Delivered at Place | When ready for unloading at destination | Seller |
※ Under CIF · CIP · DDP · DAT · DAP, the seller (exporter) takes out insurance. Under the other terms, the buyer (importer) does.
Even under All Risks (ICC(A) / A/R), certain commodities have some extraneous risks excluded. For those items, coverage can be extended with a separate endorsement + additional premium.
| Item code | Commodity | Excluded risk (covered when endorsed) |
|---|---|---|
| 202 | Raw hide, raw skin | Oil/other-object contact, hook damage, humidity |
| 203 | Grain, feed, oilseed | Shortage, humidity |
| 209-01 | Liquid chemicals (bottled) | Shortage from bottle breakage |
| 209-02 | Solid chemicals (other than drum/can) | Shortage from bag tearing |
| 209-03 | Explosives | Explosion risk |
| 209-04 | Pharmaceuticals (bottled) | Shortage risk |
| 210-01 | Foodstuffs | Humidity risk |
| 210-02 | Raw sugar | Shortage risk |
| 215-01 | Ferrous metals | Rust, oxidation, discoloration |
| 215-01/02 | Ferrous/non-ferrous metals (scrap, powder) | Rust, oxidation, discoloration, shortage |
| 216 | Machinery | Special Replacement Clause (for secondhand machinery) |
| 217 | Glass, ceramics, furniture | Breakage risk |
| 303 | General goods (fragile cargo) | Breakage risk |
Please prepare the following 7 documents. You can send them via cargoinsu.com's consultation channels when requesting a firm quote.
Beyond the base clauses, coverage can be extended by adding the following.
Situations we see often in import/export and transport — a quick self-check by scenario
Cargo is exposed to loss or damage throughout the international voyage.
The party obliged to insure changes with the trade term, so confirm it first.
Useful when the shipper manages its own cargo risk directly through insurance.
Consider an open cover instead of buying each shipment separately when counts are high.
Check whether war and strike add-on clauses are attached on top of the basic cover.
In marine cargo, disputes usually begin not with whether a loss is covered but with who is obliged to insure. Incoterms such as FOB, CIF and DAP decide whether the seller or the buyer should arrange cover, so the trade term has to be settled first. Cover normally runs warehouse to warehouse, while risks such as war, strikes and riots are covered only when the relevant add-on clauses are attached.
Source: (Standard textbook scenario)
Covering the sea-leg risk of mixer trucks supplying ready-mix concrete to island and coastal sites
FPA (Free of Particular Average) with On-Deck Clauses and Special Replacement Clauses covers sinking, stranding, capsizing, collision and fire, and falls or overturning during loading and unloading.
An Other Insurance Clause covers the amount in excess of the truck owner's own motor policy, filling the sea-leg gap that motor insurance leaves open.
The sum insured is (vehicle value + loaded ready-mix) × 110%, assessed on the maximum number of trucks per sailing. It can be arranged as insurance for a third party, with the truck owner as the insured and the construction company as the policyholder.
To supply ready-mix concrete to a construction site on an island, mixer trucks are carried by a chartered car ferry from a nearby coastal port to the island. Marine cargo was arranged as excess cover on top of the truck owner's own motor policy. Ordinary motor insurance generally does not cover the sea leg while a vehicle is loaded on a ship, so marine cargo fills the loss to the vehicle on that leg. Premium and cover terms are confirmed after the insurer's underwriting, and our brokerage fee is borne by the insurer at no additional cost to the shipper (Insurance Business Act Art. 98).
Source: (General industry example)
The wording and structure points shippers most often overlook
Under CIF and CIP the seller insures; under FOB and CFR the buyer does. Settle the trade term first so no gap in cover arises.
Institute War Clauses, SRCC and similar covers are not part of the basic cover; on a risky route, check whether the add-on clauses are attached.
Check that the Transit Clause runs from the origin warehouse to the destination warehouse, with no gap over interim storage or transhipment.
Full Korean statutory disclosures — depositor protection, tax treatment, signature requirements, the insurance-fraud reporting center and dispute resolution — are provided on the Korean version of this page.
Marine Cargo Insurance · comparison quote
We compare the wordings of 6 insurers and design cover that fits your trade terms for loss in sea/air transit.
Coverage, exclusions and limits are governed by each insurer's wording, and the final premium is confirmed after the insurer's underwriting review. Our fee is paid by the insurer, so there is no extra cost to you (Article 98 of the Insurance Business Act).
For marine & air cargo only — enter export/import, route, HS code and CIF value to see an estimated premium range in about 30 seconds. Final premiums are confirmed after the insurer's underwriting review.
Stop quoting, binding and issuing a certificate for every shipment.
Cover attaches from the moment of shipment · manage it all with one monthly statement.
Cover attaches at shipment. Zero risk of being uninsured due to certificate delays.
Per-shipment quote / bind / issue → one monthly statement.
KIDI reference rate + virtual-account monthly billing. Credit terms arranged with 6 insurers.
On a claim, N2N manages loss adjustment and the insurer filing. The shipper only submits documents.
※ An Open Policy takes effect after the insurer's and shipper's prior underwriting review and a master settlement agreement.
Per-client cover status · expiry alerts · certificate downloads · OCR auto-intake — all on one screen.
Preview the forwarder and shipper console demos:
📊 Forwarder console demo → 📦 Shipper console demo →
Preview screens — clients, certificates and figures shown are sample data.
Visualize certificates by client and shipment; auto-flag upcoming renewals.
Automatic email / Kakao at D-30 / D-14 / D-7 before expiry.
Monthly Open Policy PDF + Excel export. Ledger integration.
Upload CI / PL / B-L → auto-extract HS code, value and Incoterms.
Priority access at launch + first 3 months free. Open Policy shippers are enrolled automatically.
