Marine Insurance Certificate for Export: Format, Cover and LC Rules
When a marine (cargo) insurance certificate is required, the fields it shows, ICC (A), (B) and (C) cover, and the UCP 600 rules banks check it against.
Short answer: A marine (cargo) insurance certificate is evidence that goods are insured while in transit. Under CIF and CIP the seller must arrange it; the buyer usually does under other Incoterms. Under a letter of credit, UCP 600 requires cover of at least 110% of the invoice value unless the credit says otherwise.
- Arranged by
- Seller under CIF and CIP; otherwise usually the buyer
- Minimum cover (LC)
- 110% of CIF/CIP value (UCP 600 Art. 28(f)(ii))
- Common clauses
- Institute Cargo Clauses (A), (B), (C)
What it is
A marine (cargo) insurance certificate evidences that cargo is covered against loss or damage in transit under a specific policy. It's distinct from the insurance policy itself — the certificate is the shipment-specific document that a bank or buyer can examine, referencing the policy that actually provides the cover.
Whether you need one at all depends on the Incoterm: under CIF or CIP, the seller is responsible for arranging and paying for insurance, and the certificate becomes part of the document set. Under FOB or similar terms, insurance is the buyer's responsibility, and the seller typically doesn't provide this certificate.
Required fields and coverage types
Typical fields: insured party, policy or certificate number, vessel and voyage details, goods description and quantity, insured value (often invoice value plus a margin, commonly around 110%, though this varies by agreement), and the coverage clauses that apply (institute cargo clauses A, B, or C, broadly ranging from all-risk to more limited named-peril cover).
Under a letter of credit, the LC will often specify the minimum coverage type and insured value required — check field 47A or the LC's insurance clause rather than assuming standard cover satisfies it.
Marine insurance certificate format
There is no single mandatory layout: each insurer uses its own form. The fields below appear on almost every certificate, and they are the ones a bank compares with the invoice, transport document and LC.
| Field | What it shows | Checked against |
|---|---|---|
| Certificate number and date of issue | Unique reference; the date matters under an LC | Transport document date |
| Policy or open cover number | The policy the certificate is issued under | — |
| Assured (insured) | Usually the exporter; endorsed in blank or to order if the LC asks | LC field 46A wording |
| Conveyance and voyage | Vessel or flight, voyage number | Bill of lading or air waybill |
| From / To | Place where cover starts and ends (e.g. warehouse to warehouse) | LC fields 44A/44E and 44F/44B |
| Goods description, marks and packages | What is insured | Commercial invoice and packing list |
| Sum insured and currency | Commonly 110% of the CIF or CIP value | Invoice value and LC currency (32B) |
| Conditions of cover | Institute Cargo Clauses (A), (B) or (C), plus war and strikes clauses if required | LC insurance clause or contract |
| Claims payable at / survey agent | Where a claim is paid and who surveys damage | LC wording, often the destination |
| Signature | Insurer, underwriter or their authorised agent | UCP 600 Art. 28(a) |
ICC (A), (B) and (C): which cover is which
The Institute Cargo Clauses are the standard wordings most marine cargo policies use. Clause (A) is the widest; (B) and (C) only cover the perils they list.
| Clause | Type of cover | Typical use |
|---|---|---|
| ICC (A) | All risks of loss or damage, subject to listed exclusions | Most manufactured goods; what many LCs and buyers ask for |
| ICC (B) | Named perils: fire, explosion, stranding, sinking, collision, earthquake, lightning, washing overboard, entry of sea or river water, and more | Lower-value or robust cargo |
| ICC (C) | Narrower named perils: fire, explosion, stranding, sinking, collision, jettison, general average | Bulk and low-risk cargo |
| War and strikes clauses | Separate add-on clauses, not part of (A), (B) or (C) | Add when the LC or buyer asks for them |
Insurance certificate rules under a letter of credit (UCP 600 Article 28)
When an LC asks for an insurance document, the bank checks it against these rules unless the credit says otherwise.
- It must be issued and signed by an insurance company, an underwriter or their agents or proxies.
- Cover notes are not accepted. An insurance policy is acceptable in place of an insurance certificate.
- It must not be dated later than the shipment date, unless it shows that cover is effective from no later than that date.
- It must be in the same currency as the credit.
- If the credit does not state an amount, cover must be at least 110% of the CIF or CIP value.
- Cover must run at least from the place of taking in charge or shipment to the place of discharge or final destination named in the credit.
Common mistakes
Providing a certificate under FOB terms when insurance was actually the buyer's responsibility — wasted effort, and potentially confusing about who's actually covered. Insured value that doesn't match the LC's stated minimum, or coverage clauses narrower than what the credit specifies.
A goods description or vessel detail on the certificate that doesn't match the commercial invoice and bill of lading — banks compare these documents against each other, not just against the LC.
How it must match other documents
Goods description, quantity, and vessel/voyage details on the insurance certificate should agree with the commercial invoice and bill of lading. The insured value should reconcile with the invoice value plus whatever margin the LC or buyer agreement specifies.
How Bilexor helps
Bilexor keeps invoice value, goods description, and shipment details on one record, so the figures you'll need to arrange and document marine insurance under a CIF/CIP shipment come from the same source as your other trade documents.
Informational only — not insurance advice. Confirm coverage type, insured value, and certificate requirements with your insurer and, where an LC is involved, your bank.
Frequently asked questions
Is a marine insurance certificate required under FOB shipments?
Generally no — under FOB, insurance responsibility sits with the buyer once goods are loaded, so the seller typically doesn't need to provide this certificate. Confirm the specific Incoterm and any contract terms that might vary this.
What's the difference between an insurance policy and an insurance certificate?
The policy is the full insurance contract. The certificate is a shipment-specific document confirming cover exists under that policy for this particular cargo — it's what typically travels with the other trade documents, not the full policy itself.
How do I calculate the insured value for a marine insurance certificate?
The usual basis is the CIF or CIP value plus 10%, i.e. 110% of the invoice value under those terms. For a CIF invoice of USD 20,000 that means a sum insured of USD 22,000. Under an LC, 110% is the minimum when the credit gives no other figure; follow the credit if it states one.
Is a cover note accepted instead of an insurance certificate under an LC?
No. UCP 600 Article 28(c) says cover notes will not be accepted. Present an insurance certificate, a declaration under an open cover, or the policy itself.
Can the insurance certificate be dated after the bill of lading?
Only if it shows that cover was effective from no later than the shipment date. Otherwise a certificate dated after the on-board date is a discrepancy under UCP 600 Article 28(e).
Who issues a marine insurance certificate in India?
A general insurance company, either for a single shipment or as a declaration under an open (annual) policy that covers all your shipments. The exporter applies with the invoice, transport details and the cover the buyer or LC requires.
What does ICC (A) cover in marine insurance?
Institute Cargo Clauses (A) cover all risks of loss or damage to the cargo, subject to the exclusions in the clause, such as wilful misconduct, ordinary leakage or wear, insufficient packing, inherent vice and delay. War and strikes need separate clauses.
Informational only — not legal, banking, tax, or customs advice. Always verify document and LC requirements with your bank, CHA / customs broker, and buyer before presentation.