Marine Cargo Insurance

Globalization has made it possible for businesses to trade not just across borders but also across oceans. For such businesses, risk management becomes a major requirement. Because the importing and exporting of goods can expose the shipment to risks and you can incur huge financial losses if your shipments are damaged or destroyed in transit.

To take care of the risks inherent during the transit, it is important that you take a Marine Cargo Insurance. Marine Cargo Insurance can provide protection to the cargo from the time it leaves the seller’s warehouse till the time it reaches the buyer’s warehouse subject to the INCO terms in the invoice. 

Benefits of Marine Insurance

Comprehensive Coverage:  A marine cargo insurance policy offers comprehensive coverage against all risks that the goods are exposed to while they are in transit.

Easy Customization: The policy can be easily customized as per your needs and business requirements.

Flexibility: It is flexible. You can take a policy that caters to your requirements at a reasonable price that suits your budget.

Tailor-made policies: It’s possible to work out a tailor made policy in consultation with the prospective buyer of insurance.

What’s covered

Marine Cargo insurance primarily covers loss or damage to the subject matter of insurance whilst in transit caused by perils viz., fire, explosion, hijacks, accidents, collisions, flood, inundation, strike, riot, malicious damage, terrorism, shortage, non-delivery etc.

You can choose the coverage based on your specific business requirements. The policy is available for a variety of cargo/goods.

What’s not covered

The insurance policy does not cover:

  • Wilful misconduct of the InsuredCompensation is not provided for any intentional loss/damage.
  • Insufficiency or Unsuitability of packing as per industry standards.
  • No cover shall be provided if the damage occurs due to bankruptcy, liquidation, failure/collapse in the finances.
  • No cover shall be provided if the loss occurs due to delay in the cargo.
  • Inherent vice or nature of the subject matter insured.
  • Insolvency or financial default of owners/operators of the carrier if the cargo owners are privy to same

Who Can Take the Policy?

Cargo shipments with high or low value can directly impact business of an individual or an organisation. Exporter, importer, manufacturer, trader, merchant exporter, or contractors of project etc can take a Marine Cargo Insurance policy to protect goods from material damages whilst in transit.

Types of Marine Cargo Insurance Policy

Specific Policy: This provides coverage to the single specific shipment during the policy period.

Open Policy: This provides coverage to all goods in transit falling within that agreement for a period, usually one year. All the terms and conditions are agreed to between the policy holder and the insurance company at the time of taking the policy. Periodical declarations should be submitted to the insurance company and premium should be paid in advance or a cash deposit should be maintained with the insurance company. As per Section 64 VB of the Insurance Act no insurance company can accept a risk without the premium being paid in advance before the commencement of the risk

Open Cover: Same as above but this policy is essentially for Export and Imports. Some private companies use the Open Policy for Domestic, Exports and Import coverages.