Marine cargo insurance for oil and petroleum products

Russia is and has always been one of the leading exporters of oil and petroleum products in the world. In 2021 exports of oil from Russia to non-CIS countries made 214.4 mln. tonnes. Russia mainly exports oil to three countries – the Netherlands, China and Germany.

Oil and petroleum products are liquid cargoes. Oil is transported through pipelines as well as by sea, rail and land transport. As a rule, insurance of petroleum products transportation is compulsory under foreign trade contracts. Insurance terms may include Institute Cargo Clauses (A), Institute Cargo Clauses (С) or Institute Bulk Oil Clauses.

If the insured is interested in a broad insurance coverage that would include the risks of cargo contamination or petroleum products mixing, the insurer will require the presence of a surveyor during cargo handling and transhipping procedures. The surveyor checks whether the ship’s holds or railway carriages are clean and leak-tight enough as well as inspects the quality of the cargo poured in and off. For sea transportation insurers also list age and class of the ships as well as P&I insurance policy among compulsory conditions of insurance.

Feel free to approach us for help in oil cargo insurance on the Russian market by e-mail: polaris@polaris.broker