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Duration of cargo insurance coverage

Unlike other insurance policies, a marine cargo insurance policy is also known as a "voyage policy". It does not have a fixed start and end date for the coverage period. The following example comes under the trade term CPT (Carriage Paid To…named place of destination). The seller requires to insure his cargo from the time the goods leave the warehouse or place of storage named in the policy for commencement of transit until the goods are delivered to the consignees' warehouse or place of storage at the destination named in the policy or the maximum number of days specified in different clauses (whichever shall first occur). The table below shows the maximum number of days of insurance coverage for clauses that are commonly used:

Cargo Clauses

Max. No. of days of insurance coverage

Institute Cargo Clauses (A)/(B)/(C) 60
Institute Cargo Clauses (Air) 30
Institute Bulk Oil Clauses 30
Institute Frozen Food Clauses (A) 5

These specified number of days start to be counted after the date of arrival of the oversea vessel at the named destination, with the expectation that the cargo will be delivered to the consignee's warehouse within the time frame.

If the party concerned knows that there may be a delay in the voyage which could lead to the period of transit exceeding the maximum number of days of insurance coverage, he/she should inform the insurance company immediately and negotiate an extension of the insurance coverage period in order to minimise losses and avoid unnecessary disputes. 

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