Marine Cargo
Marine cargo insurance has undergone series changes and legislation to get where is presently is. Before 1976 all goods imported into Nigeria where insured by the overseas supplier; in 1976, the government of Nigeria passed a decree making it compulsory to take marine policies in Nigeria on goods being imported into the country. There are presently three types of marine cargo covers available:
Institute Cargo Clauses A: This covers all risks (range of contingencies including breakages, damages, shortages, etc.) of loss of or damage to the subject-matter insured.
Institute Cargo Clauses B: This type of cover is not as wide as clauses A. It covers only loss of or damage to the subject matter reasonably attributable to fire or explosion, vessel of craft, grounded, sunk or capsized; collision or contact of vessel, craft or conveyance with any external object apart from water; discharge of cargo at a port of distress; earthquake, volcanic eruption or lightning; entry of sea, lake or river water into vessel, craft, hold, conveyance, container, liftvan or place of storage; total loss of any package lost overboard or dropped whilst loading into or unloading from vessel or craft; and jettison and washing overboard. This clause does not cover claims for partial losses.
Institute Cargo Clauses C: This cover is the least. It provides cover against specific perils like under clauses B but excludes earthquake, volcanic eruption or lightning; entry of sea, lake or river water into vessel, craft, hold conveyance, container, liftvan or place of storage; total loss of any package lost overboard or dropped whilst loading into or unloading from vessel or craft; and washing overboard of cargo. This clause does not cover claims for partial losses.
Marine Hull
This policy is for all ocean going vessels including fishing trawlers and speed boats. Common perils covered include perils of the sea, rivers, lakes or other navigable waters; jettison; piracy; negligence of masters, officers, crew or pilots; barratry of master, officers or crew. Covers available are based on the Marine Insurance Act 1906 and are as follows:
Institute Fishing Vessel Clauses: This covers the vessel at all times (with or without a cargo of catch and fishing gear) including sailing without pilots, on trial trips, to assist/tow vessels/crafts in distress or render salvage services so far they are not carried out under a contract previously arranged by the assured, owners, managers, charters.
Institute Yatch Clauses: This policy covers loss, damage or liability arising from using the vessel while in commission; when being lifted or hauled out and launched, sailing or navigating with or without pilots, on trial trips and when assisting/towing vessels or crafts in distress; while laid up out of commission; while being used as houseboat; for loss or damage caused by latent defects in hull or machinery, breakage of shafts or bursting of boilers; the negligence of an person (excluding negligence or breach of contract). Certain extensions on prompt notice and/or payment of additional premium can be applied to the policy, e.g. continuation of cover when policy expires while the vessel is at sea, in distress or at a port/place of refuge or call, etc.
Institute Time and Institute Voyage Clauses – Hulls: The policy covers the vessel at all times while sailing or navigating with or without pilots; while on trial trips; while towing and/or assisting any other vessels or craft in distress or customary towage of the insured vessel in connection with loading and discharging operations.
Institute Time Clauses Hulls – Port Risks: This policy is for vessels that are being built or undergoing repairs in the ports or other stated places. It covers the vessel while proceeding to and from any wet or dry docks, harbours, ways, cradles and pontoons.
Private Pleasure Craft/Speedboat: This policy is similar to the Institute Yatch clauses though the private pleasure craft policy covers automatically claims due to outboard motor dropping off or falling overboard; while it excludes chemical action of petrol or oil on expanded plastic and wear and tear, depreciation and deterioration from use.
