The general guiding rate of the insurance premium is 1% of the amount insured. The premium rates may vary, for example, from 0.5% to 2.5% or more depending on factors such as:

　Type of goods ---
The goods that are more susceptible to damage demand a higher premium. For example, glassware has a higher premium rate than the hammer.

　The country and distance of destination ---
Countries with a history of higher risks of loss or damage or at a war zone require a higher premium.

The longer the distance of voyage, the greater is the risks of loss or damage, thus a higher premium rate.

　Value of the goods ---
The higher the value of the goods, the higher the amount the insurer will compensate in the event of loss or damage, thus a higher premium rate. For example, the precious jewellery has a higher premium rate than costume jewellery.

　Mode of transportation ---
Generally, ocean freight has a higher premium than land freight, and land freight has a higher premium than air freight. Air freight, in general, has better cargo security than ocean and land freight and it is faster to reach the destination by air, thus there is less exposure to the risks of loss or damage.

　The type of risks covered ---
The more risks are covered, the higher the premium. In the Institute Cargo Clauses (A), (B) and (C), the Clauses (A) have the greatest extent of cover, followed by the Clauses (B), and then the Clauses (C). Any endorsement of the insurance clauses requires payment of an additional premium.

　Container or break-bulk shipment ---
Containers provide better protection for the cargo. Therefore, container shipments have a lower premium than break-bulk shipments.

　Type of packing ---
The better the goods are protected, the lower the premium. The risks of insufficient and unsuitable packing have been excluded in the new Institute Cargo Clauses.