Image Marine Insurance Policy - Check Benefits, Meaning, Types, Features & Coverages

The Benefits of Marine Insurance Policy

Export & Import Insurance

Insure shipments that are exported and imported. Cover several risks and choose from a wide variety of coverage options. Cover notes are universally accepted as proof of insurance.

Inland Transit

Well-defined and standardized covers for protecting goods traveling within India by any mode. The domestic transit cover includes warehouse storage for limited periods.

Marine Hull

Covers and insures ships, boats or even large vessels for all risks. Complex risk covers where options for piracy, sea worthiness need to be carefully assessed.

Specific Transits

Cover for goods in transit for a specific transit or voyage. Source and destination have to be pre-defined. Cover note for such journeys issued within hours. Pricing is extremely cost-effective.

Quick Guide to Marine Insurance Policy

What is Marine Insurance

A Marine insurance policy is necessary for manufacturers, transporters and companies who are moving goods from one place to another. A marine insurance policy offers coverage for transit using rail, land, sea and air transport. This insurance policy indemnifies losses of goods against any unforeseen incident such as a collision of the vehicle, overturning, etc. that could arise during the transition of the goods from one place to the other.

Marine Insurance Act 1963

Marine Insurance Act 1963 was introduced in August, 1963 to regulate the transactions involved in marine insurance business. The business includes marine hull, cargo and freight. The insured and the voyages undertaken are subject to certain clauses that define inception and termination of insurance covers including the perils that are covered under the Act. Marine Insurance is a contract under the Marine Insurance Act 1963 created to protect the interests of the insured in case of any marine losses, paid by the insurer.

Features of Marine Insurance Policy

  • Cover for most commercial arrangements - Marine cargo insurance covers several forms of contract such as FOB (Free on Board), C & F (Cost and Freight) and CIF (Cost, Insurance and Freight). For the contract type FOB or C&F, the buyer is responsible for the insurance, while for contract type CIF, the seller is accountable for the insurance.
  • Multiple insurance structures - Based on the frequency of your purchase of a marine insurance you can select a structure. Policies can be: Sales Turn Over Policy, Specific Voyage, Open Policy, and Annual Policy. Annual or sales turnover insurance is a simple way to insure your marine insurance requirements in one policy annually.
  • Progressive levels of cover - Marine Insurance policy covers all risks included under Institute Cargo Class (A), (B) & (C). Point to note her is, Institute Cargo Class (A) provides maximum risk cover against most named and unnamed perils involved during a transit.

Types of Plan Under Marine Insurance Policy

There is a different marine insurance plan for the type of transportation and goods served. We offer all types of marine insurance.

  • Export and import marine insurance: Cover multiple export and import shipments and damage resulting from named and unnamed perils.
  • Inland transit insurance: cover all domestic transits covered including sales and purchases
  • Marine hull insurance: coverage for the hull, engines, machinery of the vessel or ship
  • Multimodal transport operator insurance: cover liabilities such as physical loss or damage to the cargo and errors & omissions, fines, and duties
  • Specific transit insurance: covers risks to goods for a particular journey/voyage.
  • Sales turnover policy: covers all legs of transactions including sales, purchases and internal transfers.

Types of Coverage Under Marine Insurance

Under a marine insurance policy, you’ll get coverage for the following details:

  • Damage to cargo or vessel due to fire, explosion, sinking, stranding during the journey
  • Expenses incurred due to collision, overturning or derailment of land conveyance
  • Compensation for expenses incurred if the cargo is discharged from port of distress/disturbance
  • Damage incurred due to natural calamities such as earthquake or lightning
  • Expenses for survey fees, forwarding expenses, costs of reconditioning and legal charges
  • Jettison and washing overboard expenses
  • Total loss of package due to overboard or droppage during loading or unloading

Note: This is just an indicative list and your policy copy will contain details of all the inclusions as part of the marine insurance bought.

Exclusions under Marine Insurance Policy

The following are not covered by any of the institute cargo clauses –

  • Willful negligence and misconduct
  • Inadequate use of packaging material or improper packaging
  • Ordinary leakages and/or loss in weight of goods
  • Insolvency or financial defaults

Note: This is just an indicative list, and your policy copy will contain details of all the exclusions as part of the marine insurance bought.

Best Marine Insurance Policy Online in India

A lot of insurers in India provide marine insurance policies. The best way to buy marine insurance is to compare different insurances online based on your requirement. We can help you select marine insurance that will suit your business, just reach out to us by submitting your details or call us on our helpline number.
Some of the top insurance companies that provide marine insurance are: ICICI Lombard, HDFC Ergo, National Insurance, Oriental Insurance and Tata AIG.

Types of Warranties in Marine Insurance

Warranties imply that the assured must abide by certain conditions under the Marine Insurance Act. If there is a breach in the warranty, the contract shall be terminated. The four types of marine insurance warranties are:

  • Express Warranty
  • Implied Warranty
  • Seaworthiness of Ship
  • Legality of Venture

Claim procedure for Marine Insurance Policy in India

Below are the steps that have to be followed to claim for marine insurance in India:

  • Intimate the claim to the insurance company by providing the policy number of your marine insurance policy
  • Submit necessary documents as asked for by the insurance company
  • After successful filing of the claim, the claimant will receive a URN/claim number, that will be used for further intimations and transactions
  • Insurance company surveys the damage and based on the survey reimburses for the damaged goods/services

Documents Required for Marine Insurance Policy in India

Below are the documents required to claim for a marine insurance policy in India

  • Original invoice of the goods transported
  • Damage certificate
  • Letter of subrogation
  • Photographs for proof of damage
  • NEFT mandate – canceled cheque or bank passbook copy of the claimant

Frequently Asked Questions

Marine insurance covers for the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination.
Below are the types of marine insurances:
  • Export and import marine insurance
  • Cargo insurance
  • Marine hull insurance
  • Multimodal transport operator insurance
  • Transit insurance Online
  • The fundamental 5 principles of marine insurance policy are
  • Indemnity
  • Insurable Interest
  • Utmost Good Faith
  • Proximate Cause
  • Subrogation and Contribution.
  • Usually, people assume that marine insurance covers only transit by sea, but in reality, a marine insurance policy covers transit by all mediums: air, water and land (posts, rails or trucks). Further, a marine insurance policy covers transportation of goods, and this can be divided into the following categories-
  • Inland Transport
  • Import
  • Export
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