Marine Insurance


Marine Hull Insurance policy provides cover against physical damage as well as attendant liabilities to ships/boats/yachts and other vessels.

This insurance is available for sea going vessels mainly for leisure, pleasure, domestic use, own business. The cover will protect against damage, loss or theft of the boat while at use or leisure.



The sum insured is the market value of the hull to either repair or replacement in the event of total loss. Cover may also extend to include the engine, contents on the boat, and against legal liabilities in view of ownership or operations.

The requirements on the vessels to be insured include:

  • Certificate of seaworthiness from registrar of ships & seafarers
  • Maintenance contract/inspection warranty
  • Warranted that all certificate requirements are always complied with including requirements for classification
  • Warranted KMA certificates maintained in force.

The insurance cover provided includes physical damage on vessel because of:

  • Perils of the sea – g., fire; explosion; jettison; storm; collision; sinking; contact with objects fixed or floating
  • Fire, explosion
  • Theft
  • Piracy
  • Earthquake
  • Volcanic eruption
  • Physical damage caused by negligence of the master, officers, crew, or pilots.

The Marine Cargo Insurance is a transit risk policy covering movement of Cargo from a specified point to the point of discharge.

This cover may run from time goods leave the warehouse of consignor/ port of loading (sea/ airport) that is named in the policy and continue during the ordinary course of the voyage until consignee’s warehouse/ port of discharge (sea/ airport)



There are various kinds of covers available for overseas transit. The following three kinds of cover are the most common.

Institute Cargo Clauses (C)

The risks covered under these clauses include loss or damage to the insured property due to or caused by:

  • Fire or Explosion.
  • Stranding, Grounding, or Sinking of the Vessel or Craft.
  • Overturning or Derailment of Land Conveyance.
  • Collision or Contact of Vessel, Craft or Conveyance with any external object other than water.
  • Discharge of cargo at a port of distress.
  • General Average Sacrifice and Salvage Charges
  • Jettisoning
Institute Cargo Clauses (B)

All losses covered under Institute Cargo Clauses (C) are covered under this clause. In addition, the following perils are also covered:

  • Loss or Damage to the Insured property due to or caused by:
  • Earthquake, Volcanic Eruption or Lightning.
  • Sea Water or Fresh Water Damage.
  • Loss or Damage by Washing Overboard.
  • Total loss of any package lost overboard or dropped whilst loading or unloading
Institute Cargo Clauses (A)

Covers all risks of loss or damage to insured cargo except those specifically excluded in the list. (This is the most comprehensive cover for Marine Insurance)

Loss Damage or Expense:

  • Attributed to wilful conduct of the assured.
  • Due to ordinary Leakage, Breakage, Wear and Tear and Loss in Weight or Volume.
  • Due to unsuitability or insufficiency of packing.
  • Caused by inherent vice or nature of the property insured.
  • Proximately caused by delay, even though the delay be caused by a risk insured against.
  • Due to insolvency or financial default of the Owners, Managers, Charterers, or operators of the vessel.
  • Due to Nuclear Perils.
  • Arising from unseaworthiness or unfitness of Vessel or Craft used for the carriage of the property insured.
  • Due to or arising from War Perils.
  • Due to or arising from Strike Perils.
  • Caused by Capture, Seizure, Arrest, Restraint or Detainment (Piracy excepted) and the consequences thereof or any attempt threat.
  • Caused by terrorist or any person acting from a political motive.



A comprehensive all risks Marine insurance policy that covers loss or damage because of:

  1. Marine perils – Perils of sea – fortuitous accidents or casualties peculiar to transportation over navigable waters (“perils of sea” e.g., fire; explosion; jettison; storm; collision; sinking; contact with objects fixed or floating.)
  2. War & SRCC Perils
  3. Extraneous Perils Also known as incidental perils, they are caused by errors in loading, carrying, and loading at the terminals. Examples are pilferage; non-delivery; rainwater damage; hook damage; oil damage; heating; breaking , denting etc
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Head office

First Assurance House,
Clyde Gardens,
Gitanga Road, Lavington