We also facilitate cargo insurance to our customers. There are Three Basic Policies (in the Old Cargo Clauses)
Institute Cargo Clauses (All risks)
The term All Risks is misleading as not all the risks are covered. The All Risks (A.R.) is the broadest form of coverage commonly encountered in exporting. It covers all risks of physical loss or damage from any external causes irrespective of percentage.
Institute Cargo Clauses (With Average)
The With Average (W.A.) is sometimes called the With Particular Average.
In insurance parlance, the word “particular” means partial, and the word “average” means loss. The With Average (W.A.) covers partial loss. The partial loss, however, is subject to a franchise being written into the policy.
Institute Cargo Clauses (Free of Particular Average)
The Free of Particular Average (F.P.A.) is the narrowest form of coverage. It covers against total loss. it is recoverable from the insurer only When loss is specifically covered in the policy.