With the rapid developments in international trade, transportation of cargo has become more of a necessity. Since each voyage is a joint venture of the ship owner and all the cargo owners, it is important that the cargoes or shipment are protected from risks which might result in huge losses for both parties. Cargo Takaful can ensure that you are protected from the financial consequences of loss or damage to your cargo.

Cargo takaful covers the loss or damage of cargoes when property is transferred, acquired, or held between the points of origin and final destination. The goods may be transported by sea, air and land.

What is covered?

Cargo takaful covers the perils stated in Institute Cargo clauses. They are
Institute Cargo Clause A, B and C.

Types of cover?

Single Shipment Policy: This policy enables cover for individual voyage basis. The policy insure the shipment of goods from one place to another in one voyage, from the time they leave the shippers on the sellers warehouse until they reach the consignees or buyers warehouse at the final destination.

Annual or Open Cargo Policy: This policy provides continuous cover with a stipulated commencement date of cover until expiring or remains in force until cancelled.

Following is a summary of the coverage provided by Cargo Clause A, B
and C :





Fire or explosion

Vessel/craft being stranded, grounded, sunk or capsized

Overturning or derailment of land conveyance

Collision or contact of vessels, craft or conveyance with external object other than water

Discharged of cargo at a port of distress

Earthquake, volcanic eruption or lightning


General average sacrifice


Washing overboard


Entry of sea, lake or river water into vessel, craft, conveyance container lift van and/or place of storage


Total loss of any package lost overboard or dropped whilst loading onto or unloading from vessel or craft


General average and salvage charges

Pirates. thieves and non delivery



Any other risks not specifically excluded in the policy or the caluses



Documents required to apply

The following documents have to be presented with: