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.
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.
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
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.
Cargo insurance, also known as marine cargo insurance, is a type of insurance that covers the loss or damage of goods while they are being transported from one place to another by sea, air, or land. In India, cargo insurance is an important aspect of international trade, as it protects both the seller and the buyer from financial losses that may occur during transit.
A cargo insurance policy in India typically covers the goods being transported, as well as the vessel or carrier that is transporting the goods. The policy may cover various risks such as theft, damage, loss, and destruction of the goods. It may also cover additional costs that may be incurred due to the loss or damage of the goods, such as freight charges and customs duties.
There are two types of cargo insurance policies that are commonly used in India: open cover policies and specific cover policies. An open cover policy is a long-term policy that covers multiple shipments made by a single exporter or importer. This type of policy is ideal for businesses that engage in regular trade activities. A specific cover policy, on the other hand, is a short-term policy that covers a single shipment.
In India, marine cargo policy is not mandatory, but it is highly recommended for businesses that engage in international trade. Cargo insurance provides financial protection to businesses, as it covers the costs of any damage or loss that may occur during transit. It also helps to build trust between buyers and sellers, as both parties are assured that their goods are protected.
To obtain a marine cargo insurance policy in India, businesses can approach insurance companies that offer marine cargo insurance. The insurance company will assess the value of the goods being transported and provide a quote for the insurance policy. Businesses can also consult with insurance brokers who can help them to compare policies from different insurance companies and choose the one that best suits their needs.
In conclusion, cargo insurance is an important aspect of international trade in India. It provides financial protection to businesses and helps to build trust between buyers and sellers. Businesses that engage in regular trade activities should consider obtaining an open cover policy, while those that engage in occasional trade activities should consider obtaining a specific cover policy.
Here is a table summarizing the key difference between Freight Insurance and Cargo Insurance:In summary, while freight insurance vs cargo insurance may seem similar in terms of their purpose, the key differences lie in who provides the coverage, what is covered, who is responsible for obtaining the coverage, and the limits of coverage. While freight insurance covers limited liability for damage or loss of goods during transportation, cargo insurance covers the full value of the goods being transported.
|Feature||Freight Insurance||Cargo Insurance|
|Provided by||Carrier or Transporter||Shipper or Owner of Goods|
|Covers||Limited liability for damage or loss of goods during transportation||Full value of the goods being transported|
|Responsibility||Carrier or Transporter is responsible for providing coverage||Shipper or Owner of Goods is responsible for obtaining coverage|
|Coverage Limit||Covers only a limited amount per kilogram of goods||Customizable to cover specific risks and covers the full value of goods|
|Availability||May be included as a part of carrier's service||Must be obtained separately by the shipper or owner of goods|
Here is a more detailed explanation of the two main types of marine cargo insurance policies:
Having both types of cargo insurance can provide comprehensive coverage for both regular and occasional trade activities.
Cargo insurance is important to protect your business from the financial loss that may occur if your goods are lost or damaged during transportation. Shipping goods across long distances, through multiple modes of transportation, involves a certain degree of risk. Cargo insurance, also known as marine cargo Insurance, can provide financial protection for your business against unforeseen events, such as natural disasters, theft, or accidents. It can also help to build trust with your customers, as they know that their goods are protected during transit. In addition, many banks and financial institutions require cargo insurance as a prerequisite for financing international trade transactions.
There are several advantages of cargo insurance, including:
The coverage provided in cargo insurance plans can vary depending on the type of policy purchased and the specific needs of the business. However, some common marine cargo insurance coverage are:
While cargo insurance policies can provide comprehensive coverage for goods during transportation, there are certain exclusions that are typically not covered. Some common exclusions include Loss or damage due to or caused by:
It is important for businesses to carefully review their insurance policy, understand the specific exclusions that may apply and work with an experienced insurance broker like SecureNow, who can help businesses identify and buy right Cargo Insurance coverage.
In the event of loss or damage to goods covered by a cargo insurance policy, the business must file a claim with their insurance provider to receive compensation. The cargo insurance claim procedure generally involves the following steps:
It is important for businesses to carefully review their cargo insurance and claim procedure to ensure a smooth and timely reimbursement in the event of loss or damage to goods.
Buying a marine cargo open policy online in India is a simple process that can be completed in a few steps:
Cargo insurance has certain limitations that businesses should be aware of. These include coverage limits, exclusions, delay in settlement, and the cost of premiums. Commercial Cargo insurance policies have limits on the amount of coverage available, which can impact businesses with high-value goods. Exclusions may limit coverage for certain types of loss or damage. In some cases, insurance providers may take time to process and settle claims, which can impact cash flow. Lastly, the cost of premiums can vary depending on the type and value of goods being transported, the destination, and the level of coverage required.
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.
Leverage specialized underwriters and international experts unique for each line of business.
Works with all the leading insurers to discover the best price for most comprehensive features.
Get cover note issued within 24 hours. All service requests are resolved in pre-defined TATs.
Manage all aspects of claim including insurer, surveyor & TPA co-ordination, and documentation.
Receive risk diagnostic reports, themographic studies, policy analysis, and wellness programs.
Access your insurance policies through single login; service requests, MIS, and renewal alerts.