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Marine Cargo Insurance

Protect your goods during transit across sea, road, rail, or air, from risks such as explosion, fire, and more.

Coverage worth

₹20 Lakhs

at just

₹700^*

annually

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What Is

Marine Cargo Insurance?

Marine Cargo Insurance is designed to safeguard your business against losses incurred during the transportation of goods. It's not limited to sea transport — it encompasses all modes, including air, land (road and rail), and inland waterways. It offers coverage for a wide array of risks, including container damage, cargo loss, liability for third-party property damage or personal injury.

Companies that regularly transport valuable or fragile goods need this insurance policy for their shipments.

Types of Marine Cargo Insurance

Import Marine Insurance

This policy provides comprehensive coverage for any kind of import, from any global location to any destination in India. The primary modes of transit covered under this policy typically include air and sea transport.

Export Marine Insurance

Specifically designed for exporters, this policy offers protection for any form of export, emanating from any part of India to destinations worldwide. The key transit methods incorporated in this policy are air and sea transport.

Inland Marine Insurance

Catering to domestic transportation needs, this policy ensures coverage for the transfer of goods across India, predominantly by road and rail. This insurance type is ideal for mitigating risks associated with inland goods transportation.

ALOP Insurance

It stands for Advanced Loss of Profit and is a particular type of business interruption insurance. It relates to the financial consequences of a project delay due to the occurrence of material damage to critical equipment during shipment. It is also known by the various names like Delay in Start-up, and Project-Cargo Marine/Consequential loss

E-product Specific Voyage

This insurance covers any manufactured e-product or device or any component of the same, and other interests from various losses and damages, such as fire, collisions, earthquakes, and lightning during a specific voyage.

Open Cover Agreement

It is an agreement (not a policy) in which the insurer will accept responsibility for the insurance of all shipments for a fixed period, usually 12 months, within the terms of the cover. Here, the insured party does not need to arrange separate insurance for each individual shipment.

Direct Loss

Unlike other marine policies that cover the value of items, this policy covers the sales turnover of a company. In this case, the insured receives coverage for all transits required to achieve sales. In this policy, imports & customs duties, raw materials, consumables, inter-factory, inter-depot, and job worker movement are covered. Along with that, export transit and temporary storage at intermediary locations such as ports and C&F facilities are covered also. Therefore, an annual turnover policy can satisfy all the requirements of a marine cargo insurance policy.

Specific Voyage Policy

It provides coverage for a specific single transit, from one location to another. It typically includes protection against various perils and risks that may occur during the transportation of goods. This policy concludes upon the journey's completion.

Annual Policy

This policy is issued to cover marine cargo shipments from all potential perils for a period of 12 months.

Who Needs

Marine Cargo Insurance?

Obtaining a marine cargo insurance policy is highly recommended for any company involved in the transportation of goods, whether it's by sea, air, land, or inland waterways. It is highly sought after by shippers, cargo owners, logistic service providers, operators, freight forwarders, importers and exporters, etc. It protects shipping companies and couriers from potential losses stemming from natural disasters, cross-border conflicts, water transportation issues, inland & air transportation issues or cargo mishandling. It is an indemnity contract in which the insurer agrees to compensate the insured, within the policy's limits, for any loss or damage to property caused by specified perils.

Why Get

Marine Cargo Insurance?

Business shipments often hold significant value, and any damage can directly affect a company's bottom line. Marine Cargo Insurance policies can provide coverage for theft, malicious damage, shortages, non-delivery of goods, damages during loading and unloading, and cargo mishandling. You can tailor marine cargo insurance coverage to meet your specific business requirements, and it is available for a broad range of cargo and goods.

How to File a Claim Under Marine Cargo Insurance?

Provide a copy of the insurance policy as proof of coverage.
Submit the surveyor's report detailing the extent of damage or loss.
Produce a copy of the bill of lading as proof of the shipping contract.
Present a claim bill, specifying the incurred losses or damages.
Share the original invoice list to provide details of shipped items and their values.
Any correspondence with carriers demonstrating efforts to resolve the issue.

Coverages & Exclusions in

Marine Cargo Insurance

CoveragesExclusions

Whether the cargo is being transported by sea, air, land, or inland waterways, marine insurance protects it against various risks and perils that may occur throughout the journey. Major accidents covered under marine insurance include:

Collision

This cover refers to the protection provided for physical damage or loss to cargo resulting from a collision or accident during transit. For example, If the vessel carrying the insured goods collides with another vessel, resulting in damage or loss to the cargo, the policy will provide coverage for the resulting expenses. It may also be extended to include collisions or accidents that may occur during the inland transportation of goods or cargo, by truck, train, or other forms of inland transport.

Fire accident

This coverage protects against damages to any cargo or property on board that may be affected by a fire accident. It also covers additional expenses related to the fire, such as firefighting efforts or damages caused by smoke or water used to extinguish the fire.

Sinking

Sinking coverage includes damages to any cargo or property on board resulting from the sinking or capsizing of the carrier. It also covers additional expenses incurred due to the sinking, such as salvage and recovery efforts, and liability for damages caused to other vessels or properties.

Natural calamities

This coverage protects against damages or losses to the cargo caused by natural disasters like storms, hurricanes, earthquakes, or tsunamis. It covers losses to cargo or property on board and includes costs associated with salvage and recovery efforts, as well as liability for damages caused to other carriers or properties.

Reconditioning cost

Reconditioning cost coverage provides reimbursement for expenses incurred to repair or restore a carrier to its original condition following a covered loss or damage. This may include repairs to the machinery, equipment as well as replacement of damaged or lost items. It also covers labor and materials costs for reconditioning, along with related expenses like shipping and storage

Overturning

This coverage protects against damages or losses to cargo or property on board, as well as additional expenses related to the overturning, such as salvage and recovery efforts.

Explosion

Explosion coverage protects against damages to the shipment and any cargo or property on board resulting from an explosion or similar event. It also covers additional expenses incurred due to the explosion, such as salvage and recovery efforts, and liability for damages caused to other carrier or property.

Stranding

Stranding coverage protects against damages or losses to a shipment caused by it becoming stranded on a shoal, reef, or other obstruction. This coverage also includes damages to any cargo or property on board affected by the stranding.

Willful acts by the insured

It excludes losses or damages arising from intentional or willful acts by the insured or its representatives, such as causing intentional damage to their own cargo and filing a fraudulent insurance claim.

Weight loss, volume loss, liquid leakage, or normal wear and tear:

Coverage is excluded for losses or damages resulting from weight loss, volume loss, liquid leakage, or normal wear and tear of the insured item.

Inadequate packaging

It excludes losses arising from the insured's negligence or failure to take reasonable precautions in packaging or preparing the insured item for transport.

Inherent vice or nature

Losses or damages arising from inherent defects or characteristics of the insured item are excluded.

Damages arising from riots, strikes, or war

There is exclusion for losses or damages resulting from insured party's cargo being damaged or lost during events like riots, civil commotions, or war. However, some of these perils can be covered under certain conditions with an additional premium.

Delay in the delivery of goods

It excludes losses or damages resulting from a delay in the delivery of the insured goods, which doesn't result in any physical damage or loss to the goods themselves.

Default on financial obligation

It excludes coverage for losses or damages caused by the financial failure or default (such as failure of loan payments) of a party involved in the transportation or delivery of the insured goods. For example, this exclusion typically applies when the loss or damage to the cargo results from the financial inability of a party (such as a Freight Forwarder) to fulfill his contractual obligations related to the transportation or delivery of the goods.

Marine Cargo Examples

Incident 1Incident 2

A company manufacturing electronics ships a cargo worth Rs 5 crore from India to Myanmar. During the voyage, a severe storm damages the shipment, causing the electronic goods to become inoperable and leading to a total loss. If the company had obtained marine cargo insurance before shipping the goods, they could have filed a claim with their insurer and received compensation for the damages incurred.

About Marine Cargo Insurance

What are the most common types of marine cargo insurance?

What is inland marine insurance?

What is the general average in marine insurance?

What is an insurable interest in marine cargo insurance?

What is marine cargo insurance?

What is a constructive total loss in marine insurance?

What is jettison in marine insurance?

What is a marine survey for insurance?

What are the 6 principles of Marine Insurance?

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This is an article by YouStory written by Palak Agarwal and published on October, 2022

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