The Insurance Law, 2021, ACT 1061, Section 222 (1)(2) mandates marine insurance as compulsory: “A person importing goods, other than personal effects, into the country must insure the goods with an insurer licensed under this Act.” Additionally, “A person shall not place marine hull or cargo business, other than reinsurance business, with an insurer not licensed under this Act, unless with prior approval from the Commission.” Marine insurance covers the physical loss or damage of ships, cargo, terminals, and any means of transport used to transfer, acquire, or hold property between the origin and destination points. Marine Hull insurance applies to the ship or hull, while Marine Cargo insurance provides all-risk coverage for the cargo and freight.

For Marine Cargo Insurance, there are three types of coverage: Marine (Institute) Cargo Clause A, Marine (Institute) Cargo Clause B, and Marine (Institute) Cargo Clause C, with Institute Cargo Clause A being the most comprehensive and suitable for Collateralized Assets Insurance.