Doctors Professional Indemnity

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As the name itself says, a specific voyage insurance policy covers a specific single transit only. It offers coverage to goods, freights, and other interests against various losses or damages, like fire, collision, earthquake, lightning, etc.; if destroyed by rail or air while transporting goods. It will not pay anything if losses or damages happen due to war, terrorist activity, nuclear fusion, etc. Further, if goods are damaged during loading/unloading or while in storage, they won’t be covered under a specific voyage insurance policy, unless stated specifically.

The specific voyage insurance cover comes to an end as soon as the cargo arrives at the destination. The policy would be issued before the inception of the voyage. At the time of taking a specific voyage insurance policy, it is essential to give the complete details of the risk along with complete information about the bill of lading, vessel name, etc.

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Specific voyage insurance policies suit those businesses that do not often need marine insurance policies in the course of their business. In those businesses where the frequency of voyages is high, a specific voyage policy may not be apt. As it becomes challenging to get a separate marine insurance policy each time you decide to transfer your goods.

A specific voyage policy covers transportation of goods through inland transport, import, and export. It is feasible to extend the specific voyage insurance policy and gets an extra cover against perils like a strike, riot, civil commotion, etc.

When choosing the sum insured for a specific voyage insurance policy, you can consider the type of the contract. The total quantity of your goods would be defined in your insurance contract. To calculate the sum insured, make sure to consider the contract value and add 10%-15% to it to find out the incidental cost.


Since its inception, K.S Fashion has carved a niche for itself in the fashion industry. Till the time, the company was directly dealing with customers, however, a few years ago, the company ventured into export as well. Last year, the company bagged a huge contract of exporting fashion apparel to a buyer situated in Dubai.

Considering the risks that could arise during transit, the company decided to purchase a specific voyage insurance policy. As it was only one export, the company purchased a specific voyage insurance policy only. The policy meant to cover only a single contract and would come to an end once the goods were delivered to the buyer in Dubai.

When the ship started its journey, it was a clear sky, however, after a few hours, it started raining heavily. Though they packed the goods in a proper manner; resulted in damage due to water. When the consignment reached the destination, the buyer refused to take the delivery of 20 boxes out of 90 boxes.

Additional Read: How does Warranty Work in Marine Insurance?

As K.S Fashion had a specific voyage insurance policy, it approached the insurer for the claim settlement. Here, the insurer appointed a surveyor to inspect the situation and found that losses happened due to rain which was an insured peril.

The insurer found the claim legitimate and agreed to cover it. In this case, the insurance company only covered one voyage which was from India to Dubai. As the losses happened during that voyage, the insurer agreed to cover them. The specific voyage insurance policy comes to an end, soon after the delivery of goods.

In case, losses occurred when K.S Fashion was exporting goods to another country; then it may not cover under specific voyage insurance, even if the second export took place immediately after the first export.

Simple reason— K.S Fashion bought a specific voyage insurance policy valid only for one. The policy ended as soon as that voyage was over.

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