Marine Insurance

Ta’awuniya Insurance Company provides marine insurance that covers all losses sustained by goods as a result of exposure to insured risks during domestic or international transportation and shipping—whether by sea, air, or land. The Company indemnifies the insured according to the agreed method and extent.

Types of Coverage

• Cargo (Goods) Insurance Policy

This policy follows the marine insurance conditions issued by the London insurance underwriters and applied in the market, known as the Institute Cargo Clauses (A, B, C). All clauses cover: fire, explosion, collision/impact, detention, overturning, deviation of the means of transport from its route, collision, discharge of cargo at a port of refuge, and general average. Clause (A) includes broader coverage than clauses (B) and (C) and is considered comprehensive; however, general exclusions include: negligence, wilful misconduct, natural wear and tear, loss of weight, insufficient packing, inherent vice arising from the nature of the goods, and delay. Under the above conditions, cargo insurance includes the following policy types:

1. Single Voyage Policy (Individual):

   Issued for each separate shipment. It covers one sea voyage only and ends once the goods reach the insured’s warehouses/stores specified in the policy.

2. General Policy (Common):

   Covers marine risks when the shipping date and shipping method are not known. The insured must notify the Company as soon as they become aware that quantities have been shipped; such quantities are considered covered as long as the insured had not become aware of the shipment. If an incident occurs and it becomes clear that the insured knew and did not notify the Company before the incident, no compensation is payable unless good faith is proven. The Company may cancel coverage at any time, with 30 days’ notice for marine risks and 48 hours’ notice for war and disturbance risks.

3. Open Policy:

   Issued with a total sum insured and premium fees are collected at issuance. The sum insured is not allocated to a specific shipment; it is consumed over multiple shipments. The insured notifies the Company of each shipment upon becoming aware of it, and the Company issues an endorsement until the total sum insured is fully utilized. This policy is often subject to a final settlement upon completion of all insured shipments, is not time-limited, and premiums are paid once in advance.

• Inland Transit Insurance Policy

This service covers goods transported by road, railways, rivers and lakes. It also covers damage or loss resulting from fire, overturning of the means of transport, derailment of railway cars, or sinking of inland water transport.

Coverage Types

• Road Transit Insurance Policy

Covers goods transported by land against total loss and partial damage resulting from fire or road hazards. Additional premium may apply for robbery losses or incidents during loading and unloading. The premium depends on the type of goods and their susceptibility to the insured risks. Coverage ends upon completion of the journey. The transporting unit must be properly loaded, must not exceed licensed load limits, must be fit for the journey, and coverage begins immediately after loading is completed.

• River Transit Insurance Policy

Covers goods transported by rivers against total or partial loss resulting from fire or a navigational accident. The insured may not abandon the goods as a total loss unless damage exceeds 75% of their value prior to the incident. Coverage begins at loading and ends upon unloading at destination or after 48 hours from arrival—whichever occurs first.

• Vessels and Boats Insurance

Covers damages and losses to ships, yachts, boats, original equipment, power transmission equipment, tools and related engines declared in the policy. It also covers third-party liability within specified geographic limits for up to one year. Hull coverage includes mechanical breakdown of machinery, collision, piracy, marine salvage and theft/robbery, hostile acts, mines, labour strikes, contact with air and land transport units, incidents from loading and unloading, fraud and negligence of the captain/crew/pilots and those responsible for repairs or charterers, and damages/losses arising from actions of governmental authorities within their legal powers.

Coverage Types

1. Shipbuilding Risks Insurance Policy.
2. Hull, Machinery and Equipment Insurance Policy.
3. Third-Party Liability Insurance Policy.
4. Ship Repair Dock Insurance Policy.
5. Containerized Transport Insurance Policy.