Marine cargo insurance for grain

In recent years Russia has become one of the largest grain crops exporters in the world. In harvest year 2021 Russia exported over 45 mln. tonnes of grain crops, including 35 mln. tonnes of wheat. Considerable part of this volume was shipped abroad under CIF terms, under which cargo insurance is compulsory.

In many cases grain purchase agreement is paid by a Letter of Credit (L/C). Institute Cargo Clauses (A), Institute Cargo Clauses (С) or GAFTA №72 can be listed among the terms of grain cargoes insurance on the L/C.

Grain is bulk freight and, consequently, has natural loss rate. It also affects the insurance of such cargoes. If the insured wants shortage in weight risks to be covered, surveyor’s supervision of the quantity of cargo during its loading, transhipment and discharge will be a compulsory condition for grains crops cargo insurance.  At the same time such control for quantity of the cargo either at the points of loading/transhipment or at the points of discharge should be effected upon the same technological system. Including deductible into the insurance policy of such cargoes is also a must.

If insurance coverage of grain cargoes damage risks during the transportation is also important for the client, surveyor’s supervision of loading, transhipment and discharge has to include checking of the quality of goods as well as of cleanness and leak integrity of ship’s holds/railway carriages. After the check the surveyor drafts Expert Examination Certificate.

For sea shipments insurers also list age and class of the ships as well as P&I insurance policy among compulsory conditions of insurance.

For cargo owners who want to have shortage in weight risks insured, it is typical to face insufficient, but frequent loss related to it. Polaris Insurance Consultants can help their clients to pre-coordinate simplified claims procedure of such insured events. Polaris Insurance Consultants are ready to help their clients with grain cargoes insurance on the Russian insurance market. Feel free to contact us by e-mail: