ImageImport Export Insurance Policy in India

The Benefits of Export & Import Insurance

Meet Contractual Requirements

Export and Import cargo insurance meets contractual requirements that may oblige you to protect buyer's or their banker's interest. This is an important aspect while shipping goods CIF and CIP.

Limited Carrier Liability Cover

This Marine Insurance cover offers overall protection to your cargo because freight forwarder and carriers' liability in the event of loss is limited. Also, they are not legally responsible for the most common causes of loss.

Customised Policy

Export import cargo insurance can be customised specifically to your requirement. For instance, damage to cargo due to heating, breakage, leakage or damage due to extraneous causes can be covered.


Clear Loss Assessment

Export insurance follows internationally accepted principles of total and average loss while estimating loss value. Total loss is when the cargo is completely destroyed while the average is when a part of it is damaged.

Quick Guide to Export Import Insurance

What Is Export & Import Insurance?

An Export and Import Insurance is designed to provide compensation to the exporters or importers for the loss or damage to the goods, whilst in transit, due to perils associated with transport. It covers for all possible damages to the cargo either onshore or offshore. This insurance policy can provide cover for the commercial risks (such as faults and delays in payment, bankruptcy) and political risks (such as war, riots, etc.); if they are covered under your policy. This policy can provide cover for multiple export or import shipments and also cover for damage against a lot of named and unnamed perils.


It is the contract between the insurer and the insured, tailored for the insured, for the reimbursement of damages caused to cargo due to various covered perils.

Types of Export Import Insurance

Some of the common types of import export insurance are:


  • Pre-shipment Export Credit Insurance - This type of insurance policy covers the risks of non-payment by the buyer before the shipment of goods. It provides protection against default of payment by the buyer, political risks, and commercial risks.

  • Post-shipment Export Credit Insurance - This type of insurance policy covers the risks of non-payment by the buyer after the shipment of goods. It provides protection against default of payment by the buyer, political risks, and commercial risks.

  • Marine Cargo Insurance - This type of insurance policy covers the risks of loss or damage to goods during transit by sea, air, or land. It provides protection against risks such as fire, theft, piracy, collision, and natural disasters.

  • Product Liability Insurance - This type of insurance policy covers the risks of liability for damages caused by defective products. It provides protection against risks such as lawsuits and product recalls.

  • Political Risk Insurance - This type of insurance policy covers the risks of political events that can impact exports, such as war, expropriation, and currency inconvertibility.

  • Trade Credit Insurance - This type of insurance policy covers the risks of non-payment by customers due to commercial or political reasons. It provides protection against risks such as bankruptcy, insolvency, and default.

Exporters should carefully evaluate various types of export insurance policies available and select the one that is most suitable to their needs

Benefits of Export & Import Insurance Policy

Wide Risk Coverage

  • The Marine cargo policy provides the international covers defined under Institute Cargo Clauses (ICC) as ICC (A), ICC (B) and ICC (C), which cover different levels of risks and are universally accepted.
  • Export cargo insurance covers perils like fire, lightning, stranding, grounding, sinking or capsizing of vessels etc.
  • Maritime, extraneous and strike perils can also be covered under the marine cargo insurance.

Legal Requirements Cover

  • Export Import Insurance fulfills the obligation under the Letter of Credit as this insurance may need to be presented to the bank if requested in order to get your money.
  • This insurance may be demanded at the port by some countries during import operations in order to complete import procedures.
  • International cargo insurance takes the responsibility to expedite the release of cargo following the general average which is an internationally accepted principle.

Reduced Exposure to Financial Loss

  • As an exporter or importer, you can reduce the risk of suffering a financial loss if the goods are lost or damaged during transit by rail, sea, road, air or damage while loading or unloading.
  • You can include add-ons like war and strike clauses, and theft cover, in order to protect your cargo.
  • Export and Import Marine policy will also pay for the customs duty, removal of debris and loss of documents.

What are the Inclusions under Export Import Insurance Policy

Export Import Insurance Policy is a type of insurance policy that protects businesses engaged in international trade against the risks associated with exporting and importing goods. This policy provides coverage against loss or damage to goods during transit, including sea, air, and land transportation. The policy also covers risks such as non-payment by foreign buyers, political risks such as war or civil unrest, and regulatory risks such as changes in import/export laws. Export insurance coverage provides protection for goods shipped from one country to another, while import coverage provides protection for goods received from another country. Both types of coverage can include risks such as loss, damage, and delay in transit.


Export Import Insurance Policy typically covers three types of risks : marine insurance, credit insurance, and political risk insurance. Marine insurance provides coverage against damage to goods during transportation. Credit insurance covers the risk of non-payment by foreign buyers. Political risk insurance provides coverage against losses due to political events such as war, expropriation, and nationalization.

The coverage under this policy can be tailored to the specific needs of the exporter or importer. This policy provides peace of mind to businesses engaged in international.

What are the exclusions under Export & Import Insurance Policy

Below are the exclusions under an export import policy.

  • Perishable products: the damages caused to the products that have very less shelf-life and are prone to spoil on their own without any external forces will not be covered under this policy.
  • Improper packaging: It is always advisable to have a proper packaging of the goods transported. Claims can get rejected, if there are instances of damage to goods due to improper packaging.

Note: This is just an indicative list. The policy copy will have details of the exclusions mentioned in it.

Types of Export and Import Insurance Policies in India

Insurers offer various types of plans under an export import insurance plan in India based on the needs of the traders. A few common types of export and import insurance policies are:

  • Specific Policy: this is a policy under export and import insurance that is only applicable for one consignment. You can buy such online transit insurance here.
  • Open Policy: Open policies are created for regular traders. This policy is designed to cover for all trades during a specified period (say 12 months).
  • Sales Turnover Policy: Such a policy is a comprehensive insurance for all types of transits for a company. This would include both domestic and international transits. Further, it will cover all types of transactions such as purchase, sale and warehouse movement.

Export Import Insurance Companies in India

There are several export insurance companies in India that offer various types of export insurance policies to cover the risks associated with exporting goods from India. A few examples of the export insurance companies in India are:


  • Export Credit Guarantee Corporation of India (ECGC) - It is a government-owned company that provides export credit insurance to Indian exporters. It offers various insurance policies, including pre-shipment and post-shipment insurance, to cover the risks of non-payment, political risks, and commercial risks.

  • HDFC ERGO General Insurance Company - It is a private sector exporters insurance company that offers marine insurance policies, including import coverage, to cover the risks of loss or damage to goods during transit.

  • Tata AIG General Insurance Company - It is a joint venture between Tata Group and American International Group (AIG) and offers various types of insurance policies, including export insurance.

  • Bajaj Allianz General Insurance Company - Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE and offers various types of insurance policies, including marine insurance and export insurance, to cover the risks associated with exporting goods.

  • Oriental Insurance Company Limited - It is a government-owned general insurance company that offers marine insurance policies, including export insurance, to cover the risks of loss or damage to goods during transit.

Best Export & Import Insurance Policy Online in India

A marine policy designed for export and import is a very personalized product which depends on the needs of the policyholder/trader. SecureNow can offer you help with buying an insurance that best suits your needs by providing you a platform to compare on the coverages and benefits offered by various insurance companies. We urge you to submit your details on the form above, check for the coverage and submit a purchase request, and an export import insurance expert will get in touch with you within 24 hours to help you identify the best insurance.

Documents required to obtain Export & Import Insurance

Obtaining an export import insurance policy doesn't require a lot of documentation. Two major requirements are:

  • Declarations given by the client has to be correct
  • Request for Quote (RFQ) details have to include:
    • Occupation
    • Commodity details
    • Transit type
    • New or old cargo
    • Annual Turnover
    • Max value of consignment
    • Mode of conveyance
    • Loss History
    • These are some of the data points that are required in the RFQ for the policy to be materialized.

Claims process in Export & Import Insurance

As soon as the loss is known this should be intimidated to the insurer. Insurer will 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

The export import insurance policy, like any other insurance policy, is a contract between the insurer and the insured. An insurance company from which you opt for such an insurance issue the policy to the exporters or traders or the policyholders.
With an export & import insurance policy, your goods and cargo are safe all along the way while being carried through various modes of transport and transit. Export & import insurance policy protects exporters and importers from any losses incurred during transit, by compensating for the same. Thus, this policy protects the trade structure of every economy and is very important.
During an export-import transaction, the ownership of the goods gets transferred based upon the relevant INCO terms. The party who has the ownership of the goods will be at a loss when the goods get damaged. So, to cover such losses, it is always recommended to buy export import insurances.
Generally, regular traders prefer to buy an “open marine policy” which could cover multiple international transits. However, it is also routine for traders to buy insurance for single transits. In either case, one should prefer to buy an all-risk coverage under ICC (A) and ITC (A).Generally, regular traders prefer to buy an “open marine policy” which could cover multiple international transits. However, it is also routine for traders to buy insurance for single transits. In either case, one should prefer to buy an all-risk coverage under ICC (A) and ITC (A).

Insuropedia

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What is Particular Average Clause in Marine Cargo Insurance?

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