Marine Insurance

Marine Insurance protects your business from the financial burden of goods and products lost during a voyage. With adequate insurance coverage, you can ensure that your marine cargo reaches its destination securely and on time, protecting both your cargo and your ship from unexpected losses and damages.

What is Marine Insurance?

Marine Insurance covers loss or damage during the transport of property from origin to destination, including ships, goods, terminals, and crew members. It is a type of cargo insurance or transit insurance. 

In India, marine insurance protects against risks like loss or damage to cargo, ships, and other vessels. This includes perils such as fire, theft, piracy, collision, and weather-related risks like storms and hurricanes. The policy can also cover third-party property damage or crew member injuries.

Marine Insurance typically covers onshore and offshore property, such as container terminals and ports, and includes hull, marine casualty, and marine liability. 

Features of Marine Insurance

• Customer-Focused Policies: Designed to meet the specific needs of customers transporting goods via sea or waterways.
• Insured Value Options: Choose the insured value of your goods, whether actual or agreed-upon.
• Flexible Premiums: Options for annual, quarterly, or single-payment plans.

Types of Marine Insurance

1. Cargo Insurance: Provides financial protection against the loss or damage to goods during transportation by sea.
2. Hull Insurance: Covers physical damage to the ship or vessel, including machinery and equipment.

What is Covered?

• Theft/Pilferage: Coverage for goods lost or damaged due to theft.
• Total Loss During Loading/Unloading: Covers goods damaged or lost during loading and unloading.
• Malicious Damage: Protects against intentional damage by others.
• Collision of Vessels: Covers damages from vessel collisions.
• Fire, Lightning, and Explosion: Coverage for fire-related incidents during transport.
• Land Conveyance Accidents: Covers collisions, overturning, or derailment of vehicles carrying cargo.
• Bridge Breakage: Protection if goods are damaged when a bridge collapses during transport.
• Vessel Overturning: Coverage for goods lost due to vessel overturning or derailment.
• Stranding, Grounding, or Sinking: Covers losses if a ship gets stuck, grounded, or sinks.
• Natural Disasters: Protection against earthquakes, volcanic eruptions, and other calamities.
• Water Damage: Covers losses from water entering the vessel (excluding rainwater).
• General Average Sacrifice: Compensation for sacrifices made during maritime emergencies.
• Jettison and Washing Overboard: Covers intentional cargo disposal and goods swept away by waves.
• Unloading at Alternative Locations: Covers unloading at different ports due to bad weather.

What is Not Covered?

• Poor Packaging: Losses from improper packaging are not covered.
• Unfit Containers: Damage from unsuitable containers is excluded.
• Willful Misconduct: Excludes intentional actions by the policyholder.
• Mishandling: Damage from mishandling during transit is not covered.
• Inherent Vice: Excludes self-destructing goods due to internal flaws.
• War Risks: Damage from wars is not covered.
• Over-Dimensional and Bulk Cargo: Excludes oversized or improperly stored bulk cargo.
• Temperature Sensitivity: Losses from temperature-sensitive goods are not covered.
• Weapons and Nuclear Risks: Damage from radioactive materials is excluded.
• Wear and Tear: Ordinary wear and tear are not covered.
• Delays: Losses due to transit delays are excluded.

Factors Affecting Marine Insurance Premiums

Premiums are determined by the value and nature of goods, the transportation route, claim history, cargo fitness, and the insurer’s assessment.

*Disclaimer: Prices are subject to change based on commodities and insurers.

Marine Insurance Act 1963

The Marine Insurance Act of 1963 governs marine insurance in India, outlining regulations for protecting goods and vessels through rail, road, air, and sea. It defines insurer responsibilities and loss evaluation, promoting fairness in the marine insurance sector.

How Does Marine Cargo Insurance Work?

1. Purchase Coverage: Buy marine cargo insurance before shipping. Tailor policies to suit your cargo’s type, value, and route.
2. Coverage Scope: Protects against natural and man-made risks like storms theft, and mishandling errors.
3. Premiums: Based on cargo value, risk level, and transportation mode.
4. File Claims: Report losses with proof, such as bills and receipts, to the insurer.
5. Claim Settlement: The insurer investigates and compensates for losses based on cargo value and damage extent.

Marine Insurance Claim Document Requirements

• Insurance policy documents
• Surveyor report
• Bill of lading copy
• Claim bill
• Original invoice with shipping details
• Correspondence with carriers

Who Needs Marine Insurance?

• Ship Owners: Protect vessels from damage and liability claims.
• Freight Forwarders: Ensure safe cargo delivery.
• Exporters/Importers: Cover goods against loss during transport.
• Shipbuilders/Repairers: Protect against construction and repair risks.
• Port Authorities: Cover cargo handling in ports.
• Marine Contractors: Insure against offshore exploration risks.
• Charterers: Cover vessels under temporary control.