Quick answer: After a truck clears port, insure its inland leg with a road transit extension to your marine cargo policy or a standalone CMR/road haulage policy. Institute Cargo Clauses A gives all-risk cover, while B and C are narrower; a 25-tonne tipper moving 400 km needs at least Clause A or equivalent all-risk.
The ocean voyage gets all the insurance attention, because that is where the big water risk is. But a surprising number of total losses and partial damages to imported trucks happen after the ship has docked, while the unit is being driven or hauled from the port to the buyer's depot. A complete SAGMOTO vehicle is a high-value, awkward, zero-ground-clearance load on a public road, and the gap between "cleared at port" and "parked at your yard" is exactly where standard marine cover frequently stops. This guide explains what inland transit insurance actually covers, the clause choices that matter, and how to avoid paying twice or not at all.
Does my marine cargo policy cover the inland leg after the port?
Usually not, or only partially. A standard marine cargo policy is written for the sea voyage and typically terminates at the port of discharge once the goods are delivered to the consignee's custody or a nominated inland point, whichever comes first. The moment the truck is loaded onto a low-loader or driven off the terminal under its own power toward your depot, the marine cover may already have ended or may apply only on a restricted basis. Assuming the ocean policy follows the truck 300 kilometres inland is the single most common and most expensive mistake importers make.
The fix is explicit, not implied. Either extend the marine cargo policy with an inland transit or "survey and tender" clause that keeps cover alive until the vehicle reaches your named depot, or place a standalone road-haulage policy for that single leg. For a SAGMOTO unit travelling 300 km inland from the wharf, the extension is inexpensive relative to the vehicle value and removes the argument about where the loss occurred. The key is to confirm the termination point in writing before the ship arrives, not after a scrape on the highway.
| Cover type | When it applies | Typical end point | Gap to close |
|---|---|---|---|
| Marine cargo (CIF) | From factory to port of discharge | Port of discharge / delivery | Inland leg after port |
| Inland transit extension | Adds road leg to marine policy | Named inland depot | None if named |
| CMR / road haulage | Third-party carrier leg | Destination agreed on consignment | Carrier liability limit |
| Own-movement cover | Truck driven under own power | Yard or first reg. point | Driver and road risk |
What is the difference between Institute Cargo Clauses A, B and C?
The Institute Cargo Clauses are the standard wording used worldwide to define how broad the cover is, and the letter decides almost everything about what you can claim. Clause A is effectively all-risk: it covers loss or damage from any external cause except those specifically excluded, which makes it the right choice for a high-value complete vehicle on a rough inland road. Clause B covers specified perils, notably fire, explosion, vessel collision or stranding, and overturning of the carrying conveyance. Clause C is the narrowest, covering only the major casualties such as fire, explosion, and the conveyance being sunk, grounded or derailed.
For a SAGMOTO unit, the practical reading is simple. A SAGMOTO dump trucks operator moving a tipper 400 km on variable roads wants Clause A, because the realistic losses, a stone through the windscreen, a forklift graze at the depot, a low-loader ramp accident, are precisely the "external cause" perils that B and C exclude. Clause C would pay only if the truck were effectively written off in a major casualty, which is rare; Clause B sits in between but still misses the everyday damage that actually happens. Paying for Clause A is the difference between a claim that settles and one that is declined for being "not a covered peril."
What is CMR insurance and when do you need it?
When the inland move is handled by a third-party road carrier rather than your own driver, the contract of carriage usually falls under CMR, the international convention on the carriage of goods by road, or an equivalent national road-haulage regime. CMR governs the carrier's liability for loss of or damage to the goods while they are in the carrier's custody. It is not the same as your own cargo insurance: it is the carrier's legal liability, and it caps what you can recover from them.
The trap is the limit. Under CMR the carrier's liability is capped per kilogram of gross weight, which for a heavy truck can be far below the vehicle's value, so a carrier liability claim on a 25-tonne truck moved by a third-party carrier from port to depot may recover only a fraction of a real loss. The buyer therefore needs both: the carrier must hold valid CMR or equivalent cover, and the buyer should hold their own all-risk policy on top, so a shortfall in the carrier's limit is picked up by the cargo policy. Relying on the carrier's CMR limit alone is how importers discover their "insurance" was worth a third of the damage.
Should you buy total-loss only or all-risk cover?
Insurers sometimes offer a cheaper total-loss-only or "constructive total loss" variant, and it is tempting on a tight inland leg. It is also usually the wrong buy for a complete vehicle. The realistic inland transit loss on a truck is overwhelmingly partial: a damaged headlight cluster, a dented cab corner, a broken mirror, a punctured tyre from debris on the haul route. These are exactly the 10% to 30% partial-damage events on a USD 40,000 chassis that are far more likely than a total loss, and a total-loss-only policy pays nothing for them.
All-risk cover under Clause A pays the partial losses that actually happen, net of the policy excess, and the premium uplift over total-loss-only is typically small for a single leg. For a fleet importing several units a year, the arithmetic is decisive: two or three minor claims a year will exceed the saving from buying total-loss-only many times over. The only time total-loss-only makes sense is a very short, low-risk move of a already-damaged or salvage unit, which is not the profile of a new SAGMOTO import.
How much does inland transit insurance cost?
The premium is modest and scales with declared value and route risk. Inland transit premiums typically run 0.3% to 1.0% of the declared value per leg, so insuring a USD 45,000 truck on a 400 km move costs roughly USD 135 to 450 depending on the clause and the route risk. Longer distances, poorer roads, multiple handling points and higher excess all push the rate toward the top of that band, while a single direct move under Clause A on a good highway sits near the bottom.
The declared value should be the full landed cost, not just the vehicle price, because that is what a total loss would actually cost to replace including freight and duty. Under-declaring to save premium is a false economy: a partial claim is paid pro-rata to the declared value, so an under-declared policy quietly pays less on every claim. Buy the cover on the true landed value, choose Clause A, name the exact depot as the termination point, and the cost is a rounding error against the value it protects.
Conclusion
Inland transit insurance is the short, overlooked leg of an import that causes a disproportionate share of disputes. Marine cargo cover generally stops at the port, the Institute clauses decide whether everyday damage is covered, CMR caps what a carrier will pay, and total-loss-only leaves the most likely claims unpaid. The correct structure is an all-risk Clause A extension or standalone policy that names your depot as the end point, sits on top of the carrier's CMR liability, and is declared on the full landed value.
Shaanxi Fenghan Trading can arrange the export-side marine cargo cover as part of the shipment, but the inland leg is arranged in the destination market with a local insurer or broker. The buyer should confirm the marine policy's termination point, add the inland extension before the vessel sails, and verify the carrier's CMR cover on any third-party haul, so the truck is protected from the wharf to the yard without a gap.
Frequently Asked Questions
Does my marine cargo insurance cover the inland leg after the port?
No, standard marine cargo cover usually ends at the port of discharge, so you must add an inland transit extension or a separate road policy to cover a SAGMOTO unit travelling 300 km inland from the wharf. Confirm the policy's termination point in writing before the ship arrives so there is no gap between port and depot.
What is the difference between Institute Cargo Clauses A, B and C?
Clause A is all-risk, Clause B covers specified perils like fire and collision, and Clause C is the narrowest; for a USD 45,000 tractor choose Clause A to cover the common 80% of inland transit losses. Clauses B and C exclude the everyday handling and glass damage that actually occurs on a road move.
What is CMR insurance and when do I need it?
CMR is the international road-haulage liability regime covering loss or damage in cross-border road transport; a 25-tonne truck moved by a third-party carrier from port to depot must be covered under CMR or an equivalent road convention. Because CMR caps liability per kilogram, you still need your own all-risk policy on top.
Should I choose total-loss only or all-risk cover?
Choose all-risk (Clause A) rather than total-loss only, because a 10% to 30% partial-damage claim on a USD 40,000 chassis is far likelier than a total loss, and total-loss cover would pay nothing for it. The premium difference for a single leg is small against the value protected.
How much does inland transit insurance cost?
Inland transit premiums typically run 0.3% to 1.0% of declared value per leg, so insuring a USD 45,000 truck on a 400 km move costs roughly USD 135 to 450 depending on clause and route risk. Declare the full landed value, not just the vehicle price, so partial claims pay in full.