Marine Insurance

Comprehensive coverage for goods in transit by sea, air, rail, and road.

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PRODUCT OVERVIEW

What is Marine Insurance?

Marine insurance is a commercial insurance that protects businesses against financial losses arising during the transportation of goods, cargo, and consignments across domestic and international supply chains. While traditionally associated with sea transport, marine insurance today provides end-to-end transit coverage across road, rail, air, and waterways, helping businesses secure goods throughout the logistics journey. It is widely used by manufacturers, exporters, importers, distributors, logistics companies, and businesses managing high-value or frequent shipments.
A marine insurance policy helps cover losses caused by transit-related risks such as theft, accidental damage, fire, collision, overturning, loading and unloading incidents, natural catastrophes, and other unforeseen disruptions that may impact cargo movement or business operations. Marine insurance can cover both domestic inland transit and international import-export shipments. In India, marine insurance is governed by the Marine Insurance Act, 1963, which defines the legal framework, rights, liabilities, and principles applicable to marine and cargo insurance contracts.

Financial Protection Against Transit Losses

Reduces the financial impact of cargo damage, theft, and transit disruptions on commercial operations.

Supply Chain Continuity

Supports uninterrupted business operations by protecting goods throughout domestic and international transportation movements.

Multi-Mode Transit Coverage

Provides end-to-end protection across road, rail, air, and sea transportation under a single marine insurance framework.

Protection for High-Value Commercial Goods

Safeguards raw materials, machinery, finished goods, and other high-value cargo during storage, loading, unloading, and transit.

Better Risk Management for Growing Businesses

Helps importers, exporters, manufacturers, distributors, and logistics companies manage commercial transit risks more effectively.

Single Transit Policy

A Single Transit Policy provides coverage for a specific shipment during a one-time transit from origin to destination. It is suitable for businesses with occasional cargo movement, project-based transportation requirements, or limited shipment frequency.

Annual Open Policy

An Annual Open Policy offers continuous coverage for multiple shipments carried out during the policy period. It is commonly preferred by businesses with regular logistics operations, helping reduce administrative effort and ensuring uninterrupted transit protection.

Sales Turnover Policy (STOP)

A Sales Turnover Policy is designed for businesses managing high annual shipment volumes across multiple locations and transportation modes. The policy provides comprehensive coverage based on the company's projected annual turnover and overall transit exposure.

Cargo / Transit Insurance

Cargo or Transit Insurance provides financial protection against loss or damage to goods while being transported through road, rail, air, sea, or inland waterways. It helps businesses minimise operational and financial risks associated with cargo movement and supply chain disruptions.

Hull Insurance

Hull Insurance covers physical damage to ships, vessels, aircraft, trucks, and other transport vehicles involved in cargo transportation. It helps businesses and fleet owners manage financial liabilities arising from accidents, collisions, fires, or other transit-related incidents.

Road Transportation ⌄

Covers goods transported through trucks and commercial vehicles against transit-related risks and damages.

Rail Transportation ⌄

Provides protection for cargo moved through railway networks against accidental losses during transit.

Air Transportation ⌄

Offers coverage for domestic and international air cargo shipments, including high-value and time-sensitive goods.

Sea Transportation ⌄

Protects cargo transported through ships and vessels against maritime transit risks and damages.

Inland Waterways Transportation ⌄

Covers goods transported through rivers, canals, and inland water routes during transit.

What is Covered

Cargo Damage During Transit

Covers financial losses arising from accidental damage to goods while being transported through road, rail, air, sea, or inland waterways.

Theft and Pilferage

Provides coverage against loss of goods caused due to theft, burglary, pilferage, or non-delivery during transit.

Fire, Collision, and Transit Accidents

Protects shipments against losses caused by fire, explosion, overturning, derailment, collision, sinking, or other transit-related accidents.

Natural Calamities

Provides protection against losses caused by floods, storms, cyclones, earthquakes, and other natural disasters affecting goods in transit.

Loading, Unloading, and Handling Risks

Covers damages occurring during cargo handling activities, including loading, unloading, and temporary transit-related storage.

Warehouse-to-Warehouse Coverage

Marine insurance can provide end-to-end coverage from the point of dispatch to the final delivery destination, subject to policy terms.

General Average and Salvage Charges

Covers shared emergency expenses and salvage costs incurred to protect cargo and transport vessels during maritime incidents.

What is Not Covered

Intentional or Wilful Damage

Losses arising due to deliberate misconduct, negligence, or intentional damage caused by the insured are not covered.

Improper Packaging or Handling

Damages resulting from inadequate packaging, improper loading, poor handling, or insufficient storage arrangements are excluded from coverage.

Normal Wear and Tear

Marine insurance does not cover gradual deterioration, ordinary leakage, depreciation, or normal wear and tear of goods.

Delay and Consequential Losses

Financial losses arising solely due to shipment delays, late delivery, or market-related business losses are generally not covered.

War and Nuclear Risks

Losses caused by war, civil unrest, nuclear activity, radioactive contamination, or similar high-risk events are excluded unless specifically covered.

Inherent Nature of Goods

Damage caused due to the inherent characteristics, self-deterioration, or internal defects of the cargo is not covered.

Unfit Transport Vehicles or Containers

Losses arising from the use of unsuitable, unfit, or unauthorised transport vehicles or containers are generally excluded.

Temperature-Sensitive or Perishable Goods

Damage to temperature-sensitive, refrigerated, or perishable goods may not be covered unless specifically included in the policy.

Institute Cargo Clauses (ICC)

Institute Cargo Clauses apply to international cargo and import-export shipments. These clauses define the extent of coverage, insured risks, and exclusions applicable during international transit.

ICC (A): All Risk Coverage

ICC (A) provides the widest level of marine cargo protection and covers most transit-related losses or damages, subject to standard policy exclusions. It is commonly preferred for high-value, sensitive, or export-import cargo.

ICC (B): Restricted Risk Coverage

ICC (B) provides limited coverage against specified risks such as fire, collision, sinking, overturning, earthquake, and major accidental transit damage.

ICC (C): Basic Risk Coverage

ICC (C) offers basic protection against major transit perils, including fire, collision, capsizing, and major transport accidents. It is generally suitable for lower-risk cargo movements.

Inland Transit Clauses (ITC)

Inland Transit Clauses apply to domestic cargo transportation within India through road, rail, and inland transit routes. These clauses determine the scope of protection for inland commercial shipments.

ITC (A): All Risk Inland Coverage

ITC (A) provides broader inland transit protection against accidental loss or damage during domestic transportation, subject to policy exclusions.

ITC (A) and ITC (B) Coverage Options

ITC (A) provides broader inland transit protection against accidental loss or damage during domestic transportation, subject to policy exclusions. ITC (B) offers limited coverage against specified inland transit risks such as collision, overturning, derailment, fire, and accidental damage.

Cargo Value and Type of Goods

The premium depends on the value, nature, and risk profile of the goods being transported.

Mode of Transportation

Premium calculations may vary based on whether cargo is transported through road, rail, air, sea, or multimodal transit.

Transit Route and Destination

Shipment distance, geographical exposure, and transit routes influence the overall risk assessment and premium amount.

Packaging and Cargo Handling

Proper packaging, storage, and handling practices help reduce transit risks and may impact premium calculations.

Claims History and Shipment Frequency

Businesses with frequent shipments or higher historical claims exposure may have different premium structures based on insurer risk evaluation.

Utmost Good Faith (Uberrimae Fidei)

Both the insurer and the insured must disclose all material facts related to the cargo, shipment, transit route, and associated risks before purchasing the policy.

Insurable Interest

The policyholder must have a financial interest in the insured goods or shipment and should suffer a financial loss if damage occurs.

Principle of Indemnity

Marine insurance compensates only for the actual financial loss suffered and does not allow profit from a claim.

Subrogation

After settling a claim, the insurer gains the legal right to recover the loss amount from the responsible third party, if applicable.

Contribution

If the same cargo or shipment is insured under multiple policies, all insurers share the claim liability proportionately.

Proximate Cause (Causa Proxima)

Claims are settled based on the nearest and most effective cause of the loss or damage.

Mitigation of Loss

The insured is expected to take reasonable steps to minimise or prevent further damage to the cargo or shipment during transit.

Warranties

Certain policy conditions and obligations specified in the contract must be strictly followed for coverage to remain valid.

Customised Transit Coverage

Get tailored marine insurance solutions for domestic transit, import-export shipments, high-value cargo, and multi-location supply chain requirements.

Support Across Multiple Industries

Marine insurance solutions designed for manufacturers, distributors, logistics companies, exporters, importers, wholesalers, and growing enterprises.

Dedicated Claims Assistance

Receive end-to-end support during the claims process, including claim intimation, documentation guidance, and coordination with insurers.

Faster Policy Issuance and Renewals

Simplified onboarding and streamlined policy servicing help businesses secure coverage with minimal operational delays.

Expert Risk Advisory

Get assistance in understanding transit-related risks, policy structures, and suitable coverage options based on your business requirements.

CLAIMS

Marine Insurance Claim Process

Coverfox will assist the policyholder with the claim resolution. Follow the steps below to raise a Marine Insurance claim through Coverfox.

Claim Intimation

The insured must immediately inform us at help@coverfox.com about the loss, damage, or transit-related incident as soon as it is identified.

Submission of Claim Details

Relevant shipment and policy details, along with preliminary information regarding the incident, must be submitted for claim registration.

Survey and Damage Assessment

The insurer may appoint a surveyor to inspect the cargo, assess the extent of loss or damage, and evaluate claim validity.

Document Submission

The insured must submit supporting documents such as policy copies, invoices, transport receipts, survey reports, claim bills, and correspondence related to the shipment.

Claim Review and Settlement

Once the claim assessment and document verification are completed, the insurer processes the claim as per policy terms and approved settlement conditions.

What is the difference between marine insurance and transit insurance?

Marine insurance is a broader category that covers cargo, vessels, and transit-related risks across sea, road, rail, air, and inland waterways. Transit insurance generally focuses on protecting goods during transportation.

Does marine insurance cover road transportation?

Yes, marine insurance can provide coverage for goods transported through road networks, including domestic inland transit movements.

What is an Annual Open Marine Policy?

An Annual Open Policy provides continuous coverage for multiple shipments carried out during the policy period, making it suitable for businesses with frequent cargo movement.

What is warehouse-to-warehouse coverage?

Warehouse-to-warehouse coverage protects goods from the point they leave the origin warehouse until they are delivered to the final destination warehouse, subject to policy terms.

How is the marine insurance premium calculated?

Marine insurance premiums are generally calculated based on factors such as cargo value, type of goods, transit mode, route, packaging quality, and shipment frequency.

Is marine insurance important for import-export businesses?

Yes, marine insurance helps importers and exporters protect cargo against financial losses arising from international transit risks, logistics disruptions, and shipment damage.

How do Incoterms affect marine insurance responsibility?

Incoterms determine whether the buyer or seller is responsible for arranging marine insurance during international cargo transportation. Terms such as FOB, CIF, EXW, and DDP define the point at which transit risk and insurance obligations shift between parties involved in the shipment.

Who arranges marine insurance under CIF and FOB contracts?

Under CIF (Cost, Insurance & Freight) contracts, sellers usually arrange marine insurance until the cargo reaches the destination port. Under FOB (Free on Board) contracts, buyers generally become responsible for marine insurance once the goods are loaded onto the vessel.

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Disclaimer

Marine insurance coverage, inclusions, exclusions, clauses, premium calculations, and claim settlement are subject to insurer underwriting guidelines, policy terms and conditions, cargo type, transit mode, and applicable regulatory requirements. Coverage may vary depending on the selected policy, Institute Cargo Clauses (ICC), Inland Transit Clauses (ITC), and risk assessment conducted by the insurer. Businesses are advised to review the policy wording carefully and consult with insurance experts before purchasing coverage.