Shipping Marine Insurance Premium Calculator
Calculate ocean, air, and overland marine cargo insurance coverage. Compute total insured value using standard 110% CIF rules, select Institute Cargo Clauses (A, B, or C), and estimate exact insurance premiums.
- • CIF Insured Value Formula: Insured Value = (Commercial Invoice + Freight) × 110%
- • Standard All-Risk (ICC A): Coverage for all fortuitous loss except willful misconduct & delay
- • Minimum Policy Premium: Underwriters enforce a minimum charge (typically $35.00 – $50.00 USD)
- • Extra Coverage Options: War & Strikes (WSRCC) usually adds 0.03% – 0.05% to base rate
1. Shipment Valuation & Incoterms
2. Risk Coverage Clauses & Policy Rates
Marine Cargo Insurance Calculation Standards & Principles
Marine cargo insurance protects cargo owners against loss or damage incurred during ocean, air, or multimodal transit. Under international trade standards (Incoterms 2020), cargo is typically insured at 110% of the combined CIF (Cost, Insurance, Freight) or CIP value to cover extra administrative costs and profit allowances.
Institute Cargo Clauses (ICC A, B, C) Comparison
The International Underwriting Association (IUA) and Lloyd's Market Association set the Institute Cargo Clauses. ICC (A) provides the broadest "All Risks" protection against physical loss or damage, whereas ICC (C) limits coverage exclusively to major perils like sea vessel stranding, capsizing, collision, or discharge at a port of distress.
Frequently Asked Questions
Q: Does marine insurance cover General Average claims?
Yes. All standard Institute Cargo Clauses (A, B, and C) include coverage for General Average and Salvage Charges incurred to prevent loss to the common maritime adventure.
Q: Who is responsible for purchasing cargo insurance under FOB terms?
Under FOB (Free on Board), the buyer assumes risk once goods are loaded on board the vessel. The buyer is responsible for insuring the shipment for the main international transit leg.