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By April 11th, 2024No Comments

Marine Cargo Insurance serves as a solid protection for businesses involved in international trade, providing compensation against the risks associated with importing or exporting goods either by sea or air. Let us dive into some frequently asked questions about marine cargo insurance.

  1. What is Marine Cargo Insurance? Marine Cargo Insurance is a cover that provides compensation for loss or damage of goods being imported into or exported out of the country by either sea or air.
  1. Who needs Marine Cargo Insurance cover? This insurance cover is ideal for import/export merchants, manufacturers, traders, exporters, freight forwarders, logistics companies, and individuals and businesses that import raw materials or stocks of finished products for resale.
  1. What risks does Marine Cargo Insurance cover? Marine Cargo Insurance typically covers loss or damage to goods caused by risks such as:
  • Natural disasters such as earthquake and storms
  • Man-made disasters such as theft, hijacking and piracy of ships
  • Explosion
  • Sinking of ships
  1. How is the premium of Marine Cargo Insurance determined? The cost of Marine Cargo Insurance depends on various factors including the value of goods, mode of transportation, nature of cargo, route and the level of coverage required. Additionally, the insurer considers the risk of factors associated with the journey.
  1. Is Marine Cargo Insurance mandatory? In Kenya, Marine Insurance is mandatory for all individuals and businesses who are importing good by sea or air. This is according to the Marine Insurance Act cap 390 of the Kenyan Law. According to this regulation, individuals must obtain marine insurance coverage from a licensed insurer in Kenya before clearing their goods at customs. They must submit proof of insurance to Kenya Revenue Authority (KRA) for their goods to be cleared.
  1. Are there any exclusions? Yes, policies may have exclusions depending on the cargo insured such as pre-existing damage, inadequate packaging, delays, and perishable goods. It is therefore essential to go over the policy documents thoroughly to understand the fine prints of what is covered and what is not.
  2. How can claims be filed? In the event of loss or damage to cargo, the insured party should promptly notify the insurer and provide necessary documentation such as original policy of certificate of insurance, shipping invoices, bill of landing and/or other documentary evidence to show the extent of the loss or damage. Claims are then assessed and settled accordingly.


In conclusion, Marine Cargo Insurance is an essential component of ensuring the safe and secure importation and exportation of goods either by sea or air. It provides protection against the risks of loss or damage during transit. To select the appropriate marine cargo insurance policy, individuals and businesses should assess their unique requirements, consider the value and nature of goods being transported, evaluate potential risks and compare the cost against the benefits promised by the insurer.

CIC Insurance has marine insurance experts ready to guide you about acquiring this cover. You can reach out to us through email or call 0703099120.

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