Work out marine insurance premium instantly with clear inputs, formula shown and shareable results.
Marine cargo is insured on CIF value — cost, insurance and freight — plus a conventional imaginary profit of around 10% to cover the trader's expected margin and incidental costs. The premium rate depends on commodity, packing, voyage, conveyance and loss record.
Insured value
Insured value = (Invoice value + Freight and charges) x (1 + Imaginary profit %)
Premium
Premium = Insured value x Premium rate %
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.
Because a total loss deprives the trader of the margin as well as the goods. Adding 10% is the market convention and is accepted without proof.
Institute Cargo Clauses A is all-risks, B and C cover progressively narrower named perils. A is standard for most manufactured goods.