ImageCargo Insurance - Buy & Renew Cargo Insurance Policy Online in India

The Benefits of Cargo Insurance


Cargo insurance will be designed based on the kind of goods, sending limit for each transaction, per location limit required, type of mode used, typical normal losses and transit frequency.

Open Policy

Marine Cargo insurance can be an open declaration policy. An aggregate sum assured is specified for the full year. All transits thereafter are covered with a declaration at the end of each month.

Fast Issuance

Policy issuance is fast. Payment happens through Netbanking or NEFT. Online policy can be issued for immediate coverage. Soft copy of the policy can be used for documentary evidence of the insurance

Comprehensive Cover

Inland Transit Clause A could be bought for all risk coverage. Sum Assured could be enhanced by additional 10% to cover incidental expenses in case of loss. Add-ons such as 'loading risks' could be bought.

Quick Guide to Cargo Insurance

What is Cargo Insurance?

Cargo Insurance is a specially designed insurance policy to cover for your goods in transit. It offers coverage to your goods and freights against all types of losses and damages that can occur from external sources during the transportation. This insurance covers for all the mediums of transportation, i.e., via land, sea, air or rail.

The movement of goods or freight across, always has some risk associated with it. It is essential to insure the goods which otherwise could eat up from your profit as the loss associated could be huge.

What is the difference between Freight Insurance and Cargo Insurance?

Freight insurance and cargo insurance are insurance terms used interchangeably to describe a goods insurance which is designed to protect your goods and commodities during the transit, loading and unloading or offloading, i.e., for the period the goods are associated with the vessel or the carrier. Both the insurances are designed to insure the total or partial value of the goods.

Why do you need Cargo Insurance?

The premium of a cargo insurance comes up to less than 1% of the value of the goods or commodity transported. To say, if you are transporting goods worth INR 1,00,000 then the premium charged for a cargo insurance that will insure your goods against damages will come at a price which will be much less than INR 1000. When compared, insuring goods in transit is much cheaper than bearing the loss of the damaged goods which can be huge and eat up from your profit. Cargo insurance can prove really beneficial in the following situations:

  • Importing and exporting goods
  • Moving goods from one point to another via waterways both domestic and international
  • Goods transported via rail, road or post
  • Goods transported by airways

Types of Cargo Insurance Policy?

Below are the types:

  • Open Cover Policy: this policy covers for transits within India. An open policy is valid for a year and covers for all the goods in transit that are declared by the policyholder. An open policy can be designed for a specific type of transit. For example, we can have an open policy for sales and an open policy for purchase.
  • Specific Transit Policy: this policy is suitable for one single voyage or transit. The policy is generally issued at the start of the transit and ceases to exist as soon as the goods reaches the destination.
  • Sales Turn-over Policy: such a policy covers for multiple transits and goods transported by the policyholder. An annual policy can be issued to a transport operator, commission agent or to anyone as a joint policy. Annual freight policies cannot be assigned to others or transferred to anyone else.

Coverage provided in Cargo Insurance Plans?

Below are the coverages provided under such an insurance policy:

  • Fire or explosion
  • Collision
  • Sinking or stranding
  • Damage due to natural calamities such as earthquake, flood, lightning
  • Jettison
  • Washing overboard
  • Spillover
  • Derailment
  • Salvage charges
  • Damage during loading, onloading or offloading
  • Any damage during discharge of consignment at the port of distress
  • Note: This is just an indicative list. Complete list of inclusions or coverages will be part of your policy copy.

What does cargo insurance not cover?

There are some exclusions under a goods insurance. The policy does not cover for loss or damage due to:

  • Wars, strike, national/international unrest
  • Improper packaging of the goods transported
  • Willful damage or misconduct to damage the goods by the policyholder
  • Delay in shipment
  • Loss in volume or weight
  • Ordinary leakage
  • Inherent flaws in the goods or commodities in transit
  • Financial distress involved
  • Insolvency of the carriers
  • Ordinary wear and tear
  • Note: This is just an indicative list. Your policy copy will have the details of the exact exclusions.

Benefits of Purchasing Cargo Insurance Policy

Wide Range of Risks Covered

  • Domestic Sales and Purchases transits are covered for loss or damage caused due to various risks including fire, lightning strike, sinking of vessel and derailment of the carrying vehicle
  • Loss due to any package lost overboard or dropped whilst loading or unloading from vessel could be covered
  • Non-delivery of consignment due to hijacking or mysterious disappearance of the vehicle could also be covered

Damage Due to Third Party Covered

  • Damages caused by surrounding cargo due to leakage, heat or explosion will be covered. This may occur due to insufficient space or improper handling of the cargo.
  • Losses caused due to the negligence of the transporter such as overloading, wrong allocation, and untrained driver, could be covered
  • Accident of the cargo carrying vehicle due to third party leading to either partial or total loss of the consignment is covered

Flexible Plan

  • Single marine open policy could cover multiple transits such as sales, purchases, sales returns, inter-warehouse transfers and job work
  • We can structure an arrangement to maintain a CD balance with the insurer, and issue a portal. Clients can issue individual specific transit policies directly from the portal for all their India transits
  • We can cover transits from anywhere to anywhere in India, across multiple dispatch locations of the client

How to buy a cargo insurance policy online in India?

SecureNow helps you in buying such insurance online easily. Below are the steps that you need to follow to obtain good insurance online from us:

  • Fill in your details such as your name, contact details on our page.
  • You’ll then be directed to the transit details page where you have to provide details of the goods or commodities such as the transit type, the category and the invoice value of the goods.
  • You’ll then land on the quotes page. Here you can compare the premium and coverages offered by various insurers.
  • Click “Buy Now” against you selection and you’ll be taken through a payment gateway
  • On successfully completing the payment you’ll receive your certificate of insurance instantly over the email.

Does Cargo Insurance have any limitations?

Cargo insurance does not cover stationary risks. Cargo insurance is designed to cover for goods or commodities in transit. So, if the goods are in a warehouse or a godown, then it will not be covered under the regular goods or cargo insurance. However, there are methods to cover for your stationary goods also to protect them for unforeseen perils. Such risks need to be covered through a stock or warehouse fire insurance policy.

How to make a Cargo Insurance claim?

The first step in claiming under a cargo insurance is intimating about the damage of loss to the insurer. The Insurer will then appoint a surveyor to assess the loss. This would be followed by a list of documents required to establish cohesion and assess the actual loss. After reviewing the document, the insurer would provide a claim assessment. Typically, any marine loss entails disposal of the salvage as well. This could be retained by the client or could be sold to a third-party.

Frequently Asked Questions

There are three types of transit clauses covered namely: Inland Transit Clause (C), Inland Transit Clause (B), and Inland Transit Clause (A). ITC (A) offers the widest form of cover under inland transit insurance and covers for most named and unnamed perils.
A bill of lading is the contract between shipowner and shipper, summarizing the liability of the carrier. It also serves as a document to acknowledge the receipt of cargo or shipment. A completed bill of lading shows that the carrier has received the cargo as described and is obligated to deliver that in good condition to the consignee.
This is the maximum anticipated value of cargo during a single transit at any given point of time. It is important to keep the per sending limit on a higher side keeping inline to your business needs. This limit will have an impact on the premium calculation and as well as the claim settlement, so it is advisable to take help of our in-house insurance experts for deciding the appropriate limits.


What is a Cargo Marine Insurance Policy

The cargo marine insurance policy is a specially designed insurance cover for goods in transit. It offers coverage to freight against all types of losses or damages from external causes during transportation whether by land, sear or rail.

Usually, cargo insurance policies are freely assignable. However, in case of insured goods being personal belongings of a person, cannot assign policies.

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How does Marine Cargo insurance work?

Marine cargo insurance policy is a category of property insurance that provides protection to a property that is transit. The losses to the property in transit can incur due to certain perils associated with transport by sea, by air, or inland waterways. Marine cargo insurance provides coverage to the goods and the means of transportation from damages caused due to wheather issues...
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What is Inland Transit Clause A in marine insurance?

Marine Inland Cargo Insurance or Transit Coverage Insurance solutions will help you in safeguarding yourself from the various risks associated with the goods when they are in transit. With marine inland transit coverage, you are able to avail coverage against loss, damage, or destruction. Which can happen to goods while they are in transit over land transportation such as by goods tranis or trucks. Marine inland transit insurance is usually suitable for those goods which are being domestically transported.

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