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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?

Export and Import Insurance provides compensation to exporters or importers for loss or damage to goods during transit. This coverage applies to perils associated with transport. It covers for all possible damages to the cargo either onshore or offshore.


This insurance policy can cover commercial risks, including faults, delays in payment, and bankruptcy. It can also cover political risks like war and riots if specified in your policy. This policy covers multiple export or import shipments and protects against various named and unnamed perils. This tailored contract between the insurer and insured helps reimbursing damages to cargo caused by covered perils.

Types of Export Import Insurance

Some of the common types of import export insurance are:


  • Pre-shipment Export Credit Insurance - Addresses the risk of the buyer not paying before shipping the goods. It provides protection against default of payment by the buyer, besides covering political and commercial risks.

  • Post-shipment Export Credit Insurance - Covers the risks of non-payment by the buyer after the shipment of goods. It provides protection against default of payment by the buyer, besides covering commercial and political risks.

  • Marine Cargo Insurance - This 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 - - It 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 - Covers the risks of political events that can impact exports, including war, Forfeiture, and currency control.

  • Trade Credit Insurance - - It covers risks of non-payment by customers because of commercial or political reasons. It provides protection against risks such as bankruptcy, insolvency, and default.

Exporters should assess different export insurance options and choose the one that best fits their requirements.

Benefits of Export & Import Insurance Policy

Wide Risk Coverage

  • The Marine cargo policy includes international coverage specified in Institute Cargo Clauses (ICC). ICC (A), ICC (B), and ICC (C) clauses cover varying levels of risks and enjoy universal acceptance.
  • Export cargo insurance covers perils like fire, lightning, stranding, grounding, sinking, or capsizing of vessels etc.
  • Marine cargo insurance can also cover maritime, extraneous, and strike perils.

Legal Requirements Cover

  • Export-Import Insurance meets Letter of Credit requirements, needed for bank payment.
  • Some countries may require this insurance at the port for 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

  • Exporters or importers can reduce financial loss risks for goods lost or damaged during transit by rail, sea, road, or air. This coverage also includes protection against damage during loading or unloading.
  • You can include add-ons like war and strike clauses, and theft cover, to protect your cargo.
  • Export and Import Marine policy will also pay for the customs duty, removal of debris and loss of documents.

Export Insurance offers safeguards to businesses from financial setbacks when long-term clients fail to pay. By covering accounts receivable, it ensures a stable cash flow, and understanding how credit insurance works is crucial. Diverse modes of transportation further support seamless operations.

What are the Inclusions under Export Import Insurance Policy

Import Export Insurance protects businesses in international trade from risks associated with exporting and importing goods, providing essential coverage for security.


This policy provides coverage against loss or damage to goods during transit, including sea, air, and land transportation. The policy provides protection from non-payment, shielding against financial losses.


Additionally, It protects against political and regulatory risks, including changes in import/export laws started by foreign buyers. Export insurance covers shipped goods, while import coverage protects received goods. 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 resulting from political events such as war, confiscation, and state control. One can tailor the coverage under this policy to meet 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: Policy excludes perishable products, which are prone to natural spoilage because of their short shelf-life.
  • Improper packaging: It is always advisable to have a proper packaging of the goods transported. Improper packaging can lead to the rejection of claims for damages to goods.

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 in India provide different plans under export-import insurance to meet traders' specific needs. 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. One may procure online transit insurance at this location.
  • Open Policy: It cater to regular traders, providing coverage for an agreed period.
  • 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

Multiple Indian export insurance companies provide diverse policies covering risks associated with exporting goods from India. Kindly assess and select the most appropriate option. A few examples of the export insurance companies in India are:


  • Export Credit Guarantee Corporation of India (ECGC) - A government-owned company offering export credit insurance to Indian exporters. Offers policies like pre-shipment and post-shipment insurance, safeguarding against non-payment, political, and commercial risks.

  • HDFC ERGO General Insurance Company - - It is a private sector exporters insurance firm. It offers marine insurance, including import coverage, for goods in transit.

  • Tata AIG - A Tata Group and AIG joint venture, offers varied insurance, including export insurance policies for comprehensive coverage.

  • Bajaj Allianz General Insurance Company - Bajaj Allianz is a collaboration between Bajaj Finserv Limited and Allianz SE. It provides insurance policies, like marine and export insurance, to protect against risks in exporting goods.

  • Oriental Insurance Company Limited - This government-owned general insurance company provides marine insurance. It includes export insurance, covering risks of loss or damage to goods during transit.

Best Export & Import Insurance Policy Online in Indi

SecureNow helps you find a personalized marine insurance for export/import. Compare coverages and benefits from different insurers on our platform to make an informed decision.


Submit your details on the form above, check the coverage, and submit a purchase request. An export-import insurance expert will contact you within 24 hours to assist in identifying 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 must 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
    The RFQ requires above data points to fulfil the policy.

Claims process in Export & Import Insurance

As soon as the insured becomes aware of the loss, they should notify the insurer. Insurer will appoint a surveyor to assess the loss. A list of documents required to establish cohesion and assess the actual loss will follow. After reviewing the document, the insurer would provide a claim assessment.


Typically, any marine loss entails disposal of the salvage as well. The client can retain this or sell it 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. The insurance company issuing the policy provides insurance to exporters, traders, or policy-holders who opt for such coverage.
Export & import insurance ensures your goods' safety during transport through various modes, providing comprehensive coverage along the way. 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 important. In an export-import transaction, the relevant INCO terms determine the transfer of goods ownership. The party owning the goods suffers losses in case of damage. Therefore, it is advisable to purchase export-import insurance coverage to cover such losses.
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

Can a Customs Duty cover be bought along with an Open Cover policy under export/import insurance?

Export and import insurance policies protect businesses and cover them against various risks. This policy helps the business owners to secure against a variety of perils involved in export and import transactions. An export and import insurance has various types of policies for different users.

And yes, a customs duty cover can be bought....

Read More

What is a Cargo Insurance Policy?

The cargo insurance policy is 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, sea, or rail.

Usually, cargo insurance policies are freely assignable. However, in the case of insured goods being personal....

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What is Particular Average Clause in Marine Cargo Insurance?

It is referred to as the particular loss or damage which is caused to a cargo where the damages happen due to a particular peril and the loss is directly borne by the persons who are affected by the damages to the cargo. It means, in any situation, it is not possible to shift the burden of loss to other persons involved in the maritime....
Read More

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