Marine insurance is a type of insurance policy that provides coverage against any damage/loss caused to cargo vessels, ships, terminals, etc. in which the goods are transported from one point of origin to another. Marine insurance coverage includes loss or damage caused to the shipment/cargo/ ship while is grounded, and also from untoward perils like- sinking, collision, burning, weather conditions, navigation errors, theft, jettison, improper stowage by the carrier, hook damage, strikes, war, and natural perils.
A marine cargo insurance policy is necessary for all the owners of the ship who use it for a commercial or transportation purpose. However, the insurance coverage is not only limited to sea there are plans that offer coverage during rail, land, sea, and air transport.
Any untoward perils can cause huge financial loss to the shipment. Insuring the goods against any unforeseen incident such as an accident, collision, overturning, etc. during transit also means a secured business. There is another important sub-category i.e. Marine Cargo insurance.
1. Comprehensive Coverage: A marine cargo insurance policy offers comprehensive coverage against all the potential marine-related perils that the goods are exposed to while they are in transit.
2. Flexibility: The plans are flexible enough and have a variety of options to cater to the requirements of the insured, considering their budget.
3. Claim Survey and Settlement Assistance: This insurance policy frees from stress about the claim as the policy offers worldwide claims
settlement assistance along with a claim survey.
4. Extension of Coverage: Under this policy, one has the liberty to enhance the coverage with add-on benefits and cover the risk arising due to strikes, riots, etc.
There are different types of marine insurance plans that are designed to cater to the different needs of the customers. Mentioned below are some of the common types of plans. However, it can vary from one insurance provider to another.
Marine Cargo Insurance: Marine Cargo insurance is a type of insurance policy that covers the loss or damages caused to marine cargo during the transit. The protection is offered to the cargo owner along with the cover to the cargo for any loss or damage caused due to delay in the voyage, ship accident or unloading. Marine insurance also covers third-party liabilities arising from any loss or damage caused to the ship, port, or other transport forms from the insured cargo. This type of insurance is mainly beneficial for tankers and other heavy cargo shipments. Simply put marine insurance policy safeguards the ship.
Liability Insurance: This type of insurance protects the ship in case of a crash, collision or any attack that can lead to a huge loss or damage. It compensates the policyholder for any such liabilities that are beyond his control.
Hull Insurance: This marine insurance policy provides coverage to vessel including the furniture and articles of the ship against any unanticipated mishaps. It is imperative for the ship owners to buy this policy and not to overlook it.
Freight Insurance: It is a type of marine insurance policy that compensates the shipping company in case the freight is lost or damaged. Let us have a look at various other marine insurance plans available, some of which are:
The policy provides coverage from the risks arising during transit via sea and other modes of transport. The insurer compensates for the following:
Marine insurance coverage is not provided under the following situations:
Marine insurance coverage is based on the Institute Cargo Clauses. And the coverage available under these standard clauses includes the following:
In India, there are a plethora of insurance companies who provide marine insurance coverage. What becomes a strenuous task is to select the most suitable policy as per one’s requirements.
The best way to buy a marine cargo insurance policy is to compare different online marine policies and accordingly select the plan, which suits you the most. It is easier to select online from the various variants that are available in a marine policy. The correct approach is to compare, analyze coverage and find the best marine insurance policy online.
Here is the process and documents required for online marine insurance claim intimation and procedure:
Below is the list of documents that are required for the claim process:
Once the claim is successfully filed the insurer will provide the URN/claim number, that can be used for uploading documents and checking the insurance claim status.
If the insured items are damaged, all the necessary steps should be taken to protect from further damage or loss.