Question:
Most marine cargo insurance includes a Classification Clause. What does this clause refer to?

Answer:
Classification Clause is a mandatory clause and is commonly found on a cargo policy. The clause lists out all the basic requirements of a qualified vessel that transports the insured cargo. The purpose of this clause is to remind the shipper to find a seaworthy vessel for transportation.

Question:
If the shipper has confirmed to have his/her goods delivered by a specified vessel that meets the requirements stated in the Classification Clause, can the marine cargo insurance policy be issued without the Classification Clause?

Answer:
The Clause is a mandatory clause of a cargo policy to protect the insurer. It serves to bind the shipper to ensure to his best effort the quality of the vessel in the insured voyage. As such, the marine cargo insurance still holds to be valid should the vessel be changed without the acknowledgement of the shipper.

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