The Marine Insurance policy covers the loss or damage to property caused due to:

  • Natural disasters like cyclone, earthquake, lightning, etc.
  • Man-made disasters like theft, violence, and piracy of ships
  • Collision, overturning or derailment of land conveyance
  • Sinking or stranding of ships
  • Expenses such as survey fees, forwarding costs, and reconditioning costs

The Marine Insurance Policy covers transits by:

  • Water
  • Air
  • Road or Rail
  • Registered Post or Parcel
  • Courier

Or any combinations of the above

Click here to know what is not covered Under Marine Insurance

The Marine Insurance covers the following types of covers:

  • Institute Cargo Clause (C): Named peril basis
  • It covers loss or damage caused due to:
  • Fire or explosion
  • Overturning or derailment of land conveyance
  • Discharge of cargo at a point of distress and loss or damage caused by jettison
  • Institute Cargo Clause (B): Named peril basis

Though, this cover is similar to ‘C’, it offers the following additional covers:

  • Lightning, volcanic eruption, earthquake
  • Washing overboard
  • Entry of river or sea water into the vessel, conveyance, lift van or place of shortage
  • Total loss of any package while loading or unloading from vessel or craft
  • Institute Cargo Clause (A): It offers the wide coverage as it covers all the perils.

Additional covers

It is possible to extend marine insurance policy to cover a wide range of industries, including but not limited to:

  • Pharmaceutical industry
  • Electronics Industry
  • Healthcare Industry
  • Fine Arts
  • Consumer Goods Industry

Case on Covers of Marine Insurance

P.L. Pharma Company regularly exports its medicines to Asian nations. Formed in 2013, the company has managed to carve a niche for itself in the market.

All shipments are carried via sea route. Last year, a huge consignment was sent to Sri Lanka which reached the port successfully. However, while unloading the consignment, a fire broke out on a cargo ship anchored at the Port. The blaze which started in the morning at around 10 was put out within an hour by four fire engines who rushed to the spot. Though no casualties were reported, the consignment worth thousands of dollars engulfed into the fire.

The million-dollar loss made the company’s top management to think, is there anything they could have done to curtail the financial loss?


The situation would have been different if the company had bought a marine cargo insurance policy. This policy covers loss or damages to the goods during transportation by any means of transport, like air, water, and rail. In this case, the insurer would have given compensation to P. L Pharma Company after the latter reported the loss due to fire.

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