Best Marine Cargo Insurance in Kenya 2025: Comparing the Top Providers

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As of February 14th 2025, importers in Kenya must obtain local marine insurance for their goods. This regulation underscores the importance of choosing the right provider to ensure maximum protection and compliance with legal requirements.

Shopping around for the best marine cargo insurance in Kenya can save you money, protect your assets, and provide peace of mind during transit.

In this article, we’ll dive deep into the top marine cargo insurance providers in Kenya, compare their offerings, and provide useful insights to help you make an informed decision.

Why Should You Insure Marine Cargo?

Marine cargo insurance is vital for any business involved in importing or exporting goods. Here are key reasons why:

  1. Protection Against Perils: Coverage includes risks such as fire, collision, sinking, weather damage, pilferage, and non-delivery.

  2. General Average Loss: In scenarios where all parties involved in a maritime adventure contribute to the expenses of saving a voyage, marine insurance ensures the insured’s share is covered.

  3. Bank Requirements: For transactions involving banks, insurance is mandatory to cover documents like the bill of lading, invoice, and packing specifications.

 “Marine insurance is not just a regulatory requirement; it’s a safety net for businesses, ensuring financial protection against unforeseen events during transit.” Step by Step Insurance

Responsibility for Marine Cargo Insurance

The responsibility for insuring cargo depends on the terms of the sale contract:

  • FOB (Free on Board) and C&F (Cost and Freight): The shipper is responsible for insurance until the goods are loaded on the vessel.

  • CIF (Cost, Insurance, and Freight): The seller handles insurance for the entire transit.

Key Insight: Ensure clarity in your sale contracts to avoid misunderstandings about who covers the insurance.

Determining the Coverage Amount

When insuring marine cargo, the amount of coverage is critical. Here are some factors to consider:

  • Delivered Cost: This includes the invoice cost, freight, clearing, and inland transportation expenses.

  • Taxes and Duties: It’s advisable to include duties and taxes payable at the destination.

  • Basis of Value (BOV): The BOV reflects the overall cost and becomes the basis for settling claims. It may include FOB, CIF, C&F, VAT, and Duty, often with a 10% to 20% markup for incidentals.

  • Currency Considerations: The currency used in your invoice won’t affect the insured amount.

Factors to Consider When Choosing Marine Cargo Insurance

When selecting a marine cargo insurance provider, consider these key factors:

  1. Coverage Options: Ensure the policy covers all relevant risks.

  2. Policy Terms and Warranties: Review the fine print for exclusions and limitations.

  3. Claims Experience: Choose a provider known for efficient claims processing.

  4. Basis of Valuation: Ensure it aligns with your cargo’s value.

  5. Policy Extensions: Additional coverage for storage, transit extension, and war risks may be necessary.

Top Marine Cargo Insurance Providers in Kenya

1. AIG Kenya

Key Features:

  • Global presence with extensive branch networks
  • Specialized marine loss control Engineering services
  • Comprehensive coverage for air, sea, rail, or road transport
  • Fast claims processing at location due to worldwide presence

Target Market:

  • Individual importers and exporters
  • Banking institutions
  • Project contractors

2. CIC Group

Standout Benefits:

  • Rapid claims settlement process
  • Competitive market rates
  • Comprehensive inland transit coverage
  • Convenient online policy purchase
  • Digital access to policy documentation
  • Strong financial backing
  • Dedicated cargo insurance team

Their “warehouse-to-warehouse” protection offers customized coverage designed specifically for various goods and shipment methods, making them particularly attractive for businesses requiring flexible solutions.

3. Liberty Insurance

Unique Selling Points:

  • Global coverage capabilities
  • Warehouse-to-warehouse comprehensive protection
  • A+ rating from Global Credit Rating Agency

Comprehensive Coverage Including:

  • Expenses for loss prevention
  • General Average losses and contributions
  • Landing and warehousing charges
  • War risks coverage
  • Strikes, riots, and civil commotion
  • Theft and hijacking protection
  • Shortage and non-delivery coverage

4. Britam

Specialized Offerings:

  • Single transit covers
  • Open covers
  • Bulk and non-bulk cargo options
  • Marine Hull and Machinery Insurance for vessel protection

5. Madison Group

Coverage Highlights:

  • Flexible insurance options based on trade terms (FOB, C&F, CIF)
  • Comprehensive valuation considerations
  • Multiple policy extensions available

6. APA Insurance

Key Features:

  • Complete coverage for goods, freight, and other interests
  • Multi-modal transport coverage (rail, road, sea, air)
  • Specialized coverage for bulk consignments
  • Guaranteed out-turn (GOT) for specific products

7. AAR Insurance

Coverage Options:

  • Marine Open Cover Insurance
  • Marine Time on Risk Insurance
  • Marine Voyage Cover Insurance
  • Marine Mixed Cover Insurance

8. Old Mutual

Distinguished Features:

  • Flexible coverage options (port-to-port and warehouse-to-warehouse)
  • Negotiable insurance rates
  • Global claims settlement assistance
  • Rapid certificate issuance

 

Provider Key Coverage Types Unique Features Target Market Additional Benefits
AIG Kenya – Air, Sea, Rail, Road
– Warehouse to Warehouse
– Project Cargo 		– Global branch network
– Marine loss control Engineering
– Fast local claims processing 		– Individual importers
– Banks
– Project contractors 		– Worldwide claims settlement
– Engineering services
– Global presence
CIC Group – All-risks coverage
– Inland transit
– Warehouse coverage 		– Online purchase platform
– Fast claims settlement
– Specialized cargo team 		– Businesses
– Importers
– Local traders 		– Competitive pricing
– Digital policy access
– Strong financial backing
Liberty – Comprehensive coverage
– War risks
– Strikes & riots 		– A+ Global Credit Rating
– Complete journey coverage
– Tailored solutions 		– Global traders
– Large importers
– Multinational companies 		– Extended safeguards
– Transhipment coverage
– Storage extensions
Britam – Single transit
– Open covers
– Hull & Machinery 		– Bulk & non-bulk options
– Vessel protection
– Flexible coverage 		– Vessel owners
– Cargo owners
– Maritime businesses 		– Specialized marine expertise
– Customized solutions
– Multiple cover options
Madison Group – FOB coverage
– C&F coverage
– CIF coverage 		– Flexible insurance options
– Comprehensive valuation
– Multiple extensions 		– Commercial importers
– Trade businesses
– International traders 		– Policy extensions
– Flexible terms
– Customized solutions
Old Mutual – Port to port
– Warehouse to warehouse
– Transit coverage 		– Negotiable rates
– Quick certificate issuance
– Flexible coverage 		– Private boat owners
– Fleet operators
– General traders 		– Global claims assistance
– Rapid documentation
– Customizable coverage

Factors to Consider When Choosing a Provider

  1. Coverage Scope:
    • Type of goods being transported
    • Transportation methods
    • Geographic coverage needed
    • Additional coverage requirements
  2. Policy Terms:
    • Premium rates
    • Deductibles
    • Exclusions
    • Claims process
  3. Provider Reliability:
    • Financial stability
    • Claims settlement history
    • Customer service quality
    • Global network presence
  4. Value-Added Services:
    • Online policy management
    • Risk assessment services
    • Claims assistance network
    • Documentation support

Common Policy Exclusions

It’s important to note that most providers exclude:

  • Willful misconduct by the assured
  • Normal wear and tear
  • Insufficient packing damage
  • Inherent vice of goods
  • Delay-related losses
  • Nuclear event risks
  • Vessel unseaworthiness (if known)

Making Your Decision

When selecting a marine cargo insurance provider in Kenya, consider:

  1. Business Requirements:
    • Frequency of shipments
    • Types of goods transported
    • Typical shipping routes
    • Budget constraints
  2. Provider Strengths:
    • Expertise in your industry
    • Claims processing efficiency
    • Customer service quality
    • Digital capabilities
  3. Cost-Benefit Analysis:
    • Premium rates
    • Coverage breadth
    • Additional services
    • Payment flexibility

Read Also

For more in-depth information on marine insurance in Kenya, check out these articles:

Conclusion

Kenya’s marine cargo insurance market offers diverse options for businesses of all sizes. While providers like AIG and Liberty stand out for their global presence, others like CIC Group and Britam offer strong local expertise and specialized services. The key is to match your specific business needs with the provider that offers the most suitable combination of coverage, service, and value.

Remember to regularly review your insurance needs and provider performance to ensure your coverage remains optimal for your business operations. As the market evolves and your business grows, your insurance requirements may change, making it essential to maintain an open dialogue with your provider and stay informed about new offerings in the market.

Don’t wait until the last minute to secure your marine cargo insurance! Protect your shipments today with comprehensive coverage starting from Kshs 3,000 per shipment. Visit Here to get started and ensure your cargo is safe and compliant with local regulations.