As a cargo business owner, you may have invested in marine insurance to create a financial safety net in the event your shipment encounters an unexpected peril. However, have you considered whether your insurance would protect you if your loss resulted from a port strike? Would your policy still respond?
In most cases, the answer is no. Losses due to strikes are typically excluded under standard marine insurance policies. However, if you have opted for the Institute Strikes Clauses (Cargo) or added SRCC (Strikes, Riots, and Civil Commotion) coverage to your policy, you may be eligible for compensation provided certain conditions are met.
In this blog, we will outline what this clause covers and what it excludes and walk you through the steps involved in submitting a claim under SRCC coverage.
What does the Port Strike and Cargo Insurance cover?
Below is the list of risks that are covered under the port strike and cargo insurance cover:
- Loss or damage to the cargo caused by strikes, lockouts or labour disturbances
- Loss or damage resulting from riots or civil commotion
- Loss or damage caused by acts of terrorism
- Loss or damage caused by individuals acting with political motives
- General average and salvage charges incurred to prevent or reduce a loss from any of the above risks, adjusted according to applicable contracts and laws
Note: The above-mentioned list is not exhaustive; please refer to the policy document for a complete list.
Exclusions
These are the conditions under which your claim might get rejected:
- Loss or damage caused by the assured’s deliberate or willful misconduct.
- Normal leakage, normal loss in weight or volume, or ordinary wear and tear.
- Loss or damage due to inadequate or unsuitable packing or preparation.
- Loss or expense caused by delay, even if the delay is due to a covered risk.
- Loss or expense resulting from insolvency or financial failure of the vessel’s owner, manager, charterer, or operator.
- Loss or expense due to lack, shortage, or withdrawal of labour resulting from strikes, lockouts, or labour disturbances.
- Claims arising from abandonment or cancellation of the voyage.
- Loss or damage caused by nuclear or radioactive weapons or materials.
- Loss or damage caused by war, civil war, rebellion, revolution, or hostile acts by or against a warring party.
- Loss or expense due to the vessel or container being unseaworthy or unsuitable for safe transport, if the proposer knew about this condition when the goods were loaded.
Documents required for the strike and cargo insurance claim process
Below are the documents needed to raise the claim:
- Original insurance policy or certificate. Duly filled and signed by the insured.
- Original bill of lading / air waybill / railway receipt
- Commercial invoice and packing list.
- Independent assessment of damage or loss, ideally from an approved surveyor.
- Written intimation to insurer and carrier immediately upon discovery.
- Correspondence with the carrier, including claim lodgment and replies, especially for strike-related delays or damages.
- Discharge voucher, signed by the claimant upon settlement.
- Photographs of damaged goods.
- Customs documents, if applicable,
- Transporter’s receipt / delivery challan to confirm handover and delivery status.
- Police report / FIR. Mandatory in cases of theft, strike violence, or malicious damage.
- Subrogation letter that authorises the insurer to recover from liable third parties.
Steps involved in the claim process
Here’s a step-by-step guide:
- Step 1: Notify your insurer or broker as soon as loss or damage is discovered. Mention policy number, nature of loss (strike, theft, damage), date and location.
- Step 2: Secure the damaged cargo and packaging. Do not dispose of anything until the surveyor inspects it. Take photographs and retain transport documents.
- Step 3: The insurer will appoint a licensed surveyor to assess the damage. Cooperate fully and provide access to the cargo, warehouse, or port.
- Step 4: Fill out the insurer’s marine claim form accurately and attach the above documents.
- Step 5: Take steps to minimise further loss. This may include repacking, salvaging or rerouting cargo. Document all actions taken.
- Step 6: The insurer reviews the surveyor’s report, verifies documents, and determines liability. Strike-related claims may require proof of external interference or port disruption.
- Step 7: If approved, the insurer releases payment via NEFT or cheque. If rejected, you may escalate via grievance redressal or ombudsman.
- Step 8: Most insurers require intimation within 3–7 days of discovery. Delays may affect admissibility.
Conclusion
Understanding how port strikes are treated under cargo insurance can help you avoid unexpected financial losses. While standard single transit insurance may not cover strike-related disruptions, adding SRCC or the Institute Strikes Clauses ensures wider protection when labour unrest affects your cargo. Always review your policy wording carefully and consult your insurer or broker to ensure your coverage aligns with your operational risk. Being informed today can save you significant costs tomorrow.
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