Why RoRo is risky without a clean policy

RoRo is fast, gentle and efficient – but risks remain: storm damage, general average, theft during unplanned temporary storage, damage during port handling or war/strike events. The insurance must therefore be appropriate for the type of cargo, relation and risk profile.

Three basic principles help with the selection:

1. Scope of cover (named perils vs. all risks)
2. Risk period (warehouse-to-warehouse, port-to-port, pre-carriage/post-carriage)
3. Obligations & exclusions (e.g. „no viewing“, proper securing, no personal belongings)

Practical tip: Check the General Average Rules (York-Antwerp Rules) and whether your policy covers GA contributions and salvage. This is crucial for sea transport.

Official rules and regulations: IMO - CTU Code

What the Institute Cargo Clauses mean

The Institute Cargo Clauses (ICC) are international standard terms and conditions for goods transport insurance:

• ICC (A): All risks (with standard exclusions such as inherent vice, corrosion, inadequate packaging)
• ICC (B): Extended named perils (e.g. earthquake, seawater)
• ICC (C): Basic named perils (e.g. fire, general average)
• Add-ons: Institute War Clauses, Strikes Clauses (SRCC), GA coverage, warehouse-to-warehouse if applicable

The IUMI Guide at iumi.com provides a clear overview.

A comparison of the 5 most common RoRo tariffs

Tariff 1: Total Loss Only (TLO) – Budget protection

• For whom? Older vehicles with low residual value
• Coverage: Total damage/total loss only
• Plus: Inexpensive, covers catastrophic scenarios
• Minus: No partial damage such as dents or broken glass
• Typical application: low-budget exports
• Search intention: Minimum insurance solution for ro-ro transport

Tariff 2: ICC (C) – Basic Named Perils

• For whom? Robust vehicles, simple relations
• Coverage: Fire, collision, major accident, salvage
• Plus: Basic cover including GA
• Minus: No protection against theft or corrosion, for example
• Use case: Unsensitive machines

Tariff 3: ICC (B) – Extended Named Perils

• For whom? Moderate risk profile, additional protection desired
• Coverage: Contains more hazards (earthquakes, seawater)
• Plus: Wider than C
• Minus: No genuine all-risk cover
• Use case: Medium-value production vehicles

Tariff 4: ICC (A) – All Risks

• For whom? High-quality vehicles, sensitive goods
• Coverage: Almost all transport risks, including general average and salvage
• Plus: Protection against crashes, theft, vandalism
• Minus: Exclusions remain, e.g. rust without incident
• Use case: Premium vehicles, new machinery

Tariff 5: All Risks + War/Strikes + Specials

• For whom? Expensive EVs, project shipments with risk
• Coverage: ICC (A) + War + SRCC + Special Clauses
• Plus: Maximum protection against geopolitical risks
• Minus: Higher contribution, strict obligations
• Use case: High value on tricky routes

Comparison table: Scope of coverage & areas of application

Alt text: Matrix comparing the five standard RoRo insurance rates according to coverage elements and areas of application.

Key terms you need to know

General Average:
In the event of extraordinary rescue operations (e.g. jettisoning), costs are distributed among the ship, cargo and fuel. Without a suitable policy, high advance payments may be required.

Liability regime (carrier):
Shipping companies only have limited liability (e.g. according to the Hague-Visby or Hamburg Rules). It is therefore essential to take out your own transport insurance.

„Blickleer“ & obligations:
No items in the vehicle, fuel level < ¼, document condition. Violations jeopardise coverage.

How to choose the right insurance

1. Assess vehicle value and risk
2. Select target coverage (TLO to All Risks + SRCC)
3. Check the risk period: Do you need warehouse-to-warehouse?
4. Include GA coverage
5. Agree on add-ons and excess

Checklist: 10 steps to finding the right policy

Before booking:

1. Define the value of goods and risk
2. Set coverage target
3. Select risk period
4. Check GA & recovery
5. Clarify special clauses and excesses

During the booking process:

6. Photo documentation (exterior, interior, VIN, mileage)
7. Observe blind spots and fuel level
8. Obtain policy, check B/L data

After departure:

9. Keep track of tracking and deadlines
10. Damage: Document & report

Further links

• Timetables
• What do I need to bear in mind for a RoRo shipment?
• IMO - CTU Code

Common exclusions

• Inherent vice, normal corrosion, packaging defects
• Personal belongings in the vehicle
• Previous damage without condition documentation

Tip: For used vehicles, it is essential to create photo documentation before handing them over to the terminal.

Conclusion: Reach your destination relaxed with the right policy

The right transport insurance determines the resilience of your RoRo project. While TLO is sufficient for budget cases, ICC (A) or A + War/Strikes offer robust all-round coverage. Ensure you have clear documentation, GA coverage and compliance with obligations.

For planning and execution:

• Timetables & Slots
• Customs clearance for RoRo shipments

Note: Specific contributions depend on many factors. An individual enquiry is required to obtain a reliable quote.

Disclaimer: All information in this article has been carefully researched but is subject to change at any time. ODS Orient accepts no liability for the topicality, accuracy and completeness of the information provided.