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Marine Insurance is the oldest form of insurance. Marine Insurance broadly deals with two kind of insurance Hull and Cargo. Marine Cargo Insurance protects the owners of the cargo as well as importers, exporters, retailers, wholesalers etc. It covers goods in transit during the sea transport as well as road, rail and air.  

Importers and Exporters are exposed to countless financial risk when don’t insure their international transit. And trying to recover the losses from carrier is difficult and time consuming. The best way to protect financial interest is with marine insurance coverage. The Carrier pays for loss only when the Carrier causes damage. The carriers are only required to pay limited amount per package and not full value of cargo, this again gives a strong reason to purchase Marine Cargo Insurance. 

Marine Cargo Insurance protects against following perils:

1) Fire and explosion.

2)      Vessel being grounded, stranded, sunk and capsizes.

3)      Overturning or derailment of land conveyance.

4)      Discharge of cargo at port of distress.

5)      Entry of sea, river water in to ship etc.

6)      Washing overboard

7)      Loading and unloading of cargo.

8)      Piracy. 

Institute Cargo Clauses which provides protection from above perils.

Institute Cargo Clause (C): Named Peril basis Institute Cargo Clause

(B): Named Peril basis Institute Cargo Clause

(A): offers the widest form of cover under Marine Cargo  

Sum Insured is the maximum limit of insurer CIF+10%.

Most of the marine policies are agreed value policies, where insured can decide value of its cargo on which he has to pay his premium. 

Premium:In marine cargo insurance premium which depends upon the various factor such as Voyage, Mode of Conveyance, Nature of cargo & Packing, Terms and Condition of Insurance and past claim experience. 

Marine Cargo insurance policies are freely assignable, but importantly policyholder must have insurable interest in the goods at the time of loss.  

Types of Marine Insurance Polices:

1)      Open Cover- for dispatches outside the country.

2)      Open Policy- for dispatches within country.

3)      Special Declaration Policy for large and frequent dispatches.

4)      Specific Policy to cover single shipment. 

In India, there many insurance companies such as National Insurance, New India Assurance, ICICI Lombard, Bajaj Allianz, Tata-AIG, and Future Generali offer great marine cargo insurance policies. 

If you are not sure to go for particular company, you can always take advice from your insurance agent or Insurance Broker.