Marine & Transit Insurance
Marine Cargo Insurance
Marine Cargo Insurance provides coverage for the loss or damage of goods during transportation by sea, air, road, rail, or inland waterways. It safeguards businesses from financial losses due to unforeseen events such as theft, accidents, natural disasters, or mishandling while goods are in transit.
It is crucial for importers, exporters, manufacturers, and logistics companies to protect their shipments from risks during domestic or international transport.
Why is Marine Cargo Insurance Essential?
- Protects Against Financial Loss
- Ensures Smooth Business Operations
- Covers Various Modes of Transport
- Required for International Trade
- Customizable Coverage Options
Important Things You Should Note
- Types of Policies Available
Specific Voyage Policy – Covers a single consignment from origin to destination. Open Cover Policy – Provides continuous coverage for multiple shipments within a specified period. Annual Policy – Suitable for businesses with frequent shipments throughout the year. - Institute Cargo Clauses (A, B, C) Differences
Clause A (All Risks) – Covers all accidental losses/damages, except specific exclusions. Clause B (Named Perils) – Covers specified risks like fire, stranding, and natural calamities. Clause C (Basic Cover) – Covers major perils only, excluding theft, pilferage, and partial losses. - Understand Exclusions
Policies do not cover losses due to inherent vice, poor packaging, or delay in transit. - Claim Documentation is Crucial
Claims require a bill of lading, invoice, insurance policy, survey report, and loss details. - Coverage Extensions Available
Additional coverage can be added for war risks, strikes, terrorism, and civil commotions.
What is Covered & What is Not Covered?
What is Covered?
- Loss or Damage Due to Accidents – Covers fire, collision, sinking, derailment, overturning, or other transit-related accidents.
- Theft, Pilferage & Non-Delivery – Protection against loss due to theft, hijacking, or goods going missing.
- Natural Disasters – Covers floods, storms, earthquakes, and tsunamis affecting cargo.
- Loading & Unloading Risks – Includes damage during handling at ports or warehouses.
- General Average Losses – If cargo is sacrificed for the safety of the vessel, the policy compensates for it.
What is Not Covered? (Exclusions)
- Inadequate Packaging – Damage due to poor packaging or improper handling.
- Delay in Transit – Financial losses due to delayed deliveries are not covered.
- War, Strikes & Riots – Unless additional coverage is purchased.
- Loss Due to Inherent Vice – Damage caused by the natural characteristics of the goods (e.g., fruit rotting).
- Willful Misconduct – Losses due to fraud, intentional acts, or negligence by the insured.
Frequently Asked Questions (FAQs)
Who needs Marine Cargo Insurance?
Importers, exporters, manufacturers, distributors, and logistics providers who ship goods frequently.
Can I get coverage for international shipments?
Yes, Marine Cargo Insurance provides coverage for both domestic and international shipments.
How is the premium calculated?
Based on cargo value, type of goods, route, transport mode, and risk factors.
What should I do if my cargo is lost or damaged?
Immediately notify the insurer, gather required documents (invoice, bill of lading, survey report), and file a claim.
Does Marine Cargo Insurance cover partial damage?
Yes, if covered under Clause A (All Risks), but Clause B or C may not cover partial losses unless caused by insured perils.
