Marine Insurance

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Marine cargo insurance is a category of property insurance that provides protection to a property that is in transit. The losses to the property in transit can incur due to certain perils, associated with transport by sea, by air, or inland waterways.  In marine cargo insurance, the coverage provides to the goods and the means of transportation from damages caused due to weather issues, piracy, loading or the unloading of cargoes, etc. This insurance mainly covers cargoes that are mainly for international transportation and will cover the goods from the time they leave the warehouse of the seller until they reach the buyer’s warehouse.

Major benefits of marine cargo insurance

Some of the major benefits provided by marine cargo insurance are:

  1. Comprehensive all-risks coverage is available which includes infestation, rejection of customs, dishonesty of employees, damage caused due to improper packaging of goods, etc.
  2. Flexible coverage options are available for the policyholders.
  3. Provides the covers with cargo insurance customize to suit the needs of the policyholder.
  4. Assistance on claim settlement and survey is available worldwide.
  5. Extensions were made to the marine policy to cover strikes, riots, or other perils.

Marine Cargo Insurance Policy Types

The types of Marine cargo insurance are described below:

1. Specific Cargo  policy

The specific cargo policy provides cover against specific perils under the cargo, sent or received during the policy term.

2. Open policy

The open policy will provide cover for cargoes within the policy period and also for the indefinite period until the policy is canceled either by the insurance provider or the insured. Some insurance providers also include third-party liability coverage within this policy.

 3. Open cargo

 The open cargo policy will cover all the marine cargoes of the particular client within a 12-month policy term. The voyage involved in this case can be either an import or an export.


Marine Cargo Insurance Coverages

The Marine Cargo Insurance mainly offers four types of covers i.e.


1. Institute Cargo Clause(C) i.e. ICC C

This is one of the most restrictive clauses of marine cargo insurance and only provides cover in case of specific cases such as:

  • Fire or an explosion
  • Derailment or the overturning of land conveyance
  • Collision or the contact of vessel craft with any outside object


2. Institute Cargo Clause(B) i.e. ICC B

 The Institute Cargo Clause (B) is almost similar to that of ICC C but with some additional covers such as:

  •  Natural calamities like earthquakes, lightning, or volcanic eruptions
  • Total loss of any package if lost while the process of loading or unloading
  • Damages caused due to the entry of seawater into the vessel, craft, or conveyance


Additional Read: What is Constructive Total Loss in Marine Cargo Insurance?


3. Institute Cargo Clause(A) i.e. ICC A

The ICC A clause is a clause associated with unnamed perils. This clause offers the widest variety of coverage for cargoes. The premium for this insurance is also the highest as it provides extensive coverage. Mainly, ICC A will provide cover for all risks of loss or damage except certain specific exclusions.


4. Institute Cargo Clause (Air)

Institute Cargo Clause (Air) provides cover for all risks of loss or damage which might occur to the insured except in certain scenarios like insolvency of owners, loss caused due to delay, ordinary leakage, willful misconduct, inherent vice, etc.


Business today is no longer restricted by borders and goods are sent frequently by ships and other transport means across the world. It has become very crucial to protect goods and shipments from various mishaps and this is feasible by a marine cargo insurance policy.

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