Marine Insurance

Marine insurance is a contract that protects against financial loss or damage to a vessel, its cargo, or freight during transit across sea, air, road, rail, or inland waterways. It covers risks such as storms, collisions, fire, piracy, and theft, providing a financial safety net for businesses involved in shipping. Policies can cover various aspects like the ship itself (hull insurance), the goods being transported (cargo insurance), or the potential loss of income (freight insurance).

Why Marine Insurance Matters

Marine insurance safeguards your cargo while it travels by road, rail, air, sea, or courier. It is especially important for businesses that transport machinery, raw materials, finished products, or valuable inventory.

Benefits:

Protection against damage, theft, accidents, and natural disasters
Coverage across multiple transit modes
Prevents major financial loss and shipment disruptions
Coverage options such as warehouse-to-warehouse, loading/unloading, SRCC, and more
Suitable for manufacturers, traders, exporters, importers, and wholesalers

Marine Insurance Act, 1963 (India)

The Marine Insurance Act, 1963 provides the legal foundation for marine insurance contracts in India. It specifies how policies should be formed, what they must contain, and how claims and disputes should be settled.

The Act explains:

Rights and responsibilities of insurers and policyholders
Rules for paying premiums and settling claims
Subrogation and transfer of rights
Handling disputes and losses arising from maritime risks such as piracy and perils of the sea

The law is overseen by the Insurance Regulatory and Development Authority of India (IRDAI) to ensure fair practices and transparency across the industry.

Your Details

Types of Marine Insurance

Inland Transit Insurance –Covers goods transported within India.
Export Insurance –Covers cargo shipped from India to another country.
Import Insurance –Covers goods being brought into India from abroad.

Modes of Transport Covered

Sea/Ocean –Goods transported via cargo ships in domestic or international waters.
Inland Waterways –Movement along rivers, lakes, and canals.
Air –Cargo carried by air freight and express logistics services.
Road –Shipments moved by trucks, trailers, and commercial road carriers.
Rail –Goods transported through rail networks within India or cross-border.

What Does Marine Insurance Cover?

Fire, explosion, lightning
Earthquake, volcanic activity
Vehicle collision, overturning, or derailment
Losses during loading or unloading
Theft, malicious act, or attempted hijacking
Damage caused during transit
Other transit-related risks unless specifically excluded

Key Exclusions (Not Covered)

Rust, corrosion, or discoloration of unpacked or unprotected goods
Mechanical, electronic, or electrical breakdown not caused by an insured peril
Unexplained shortages or stock-taking discrepancies
Losses from exhibition stands during open hours
Theft without forcible or violent entry
Loss caused by employee collusion
Damage due to weather, climate, or temperature fluctuation
Loss due to changes in the water table

Exhibition/Demonstration Risk Exclusions:

Defects due to faulty design, assembly, or construction
Damage occurring while the item is being demonstrated
Theft from an unattended stand without signs of forced entry
Items hired out for exhibitions unless specifically agreed beforehand

Who Should Consider Marine Insurance?

Ship owners and operators
Shipbuilders and repairers
Marine contractors
Charterers
Port and terminal operators

Frequently Asked Questions (FAQs)

What is Marine Insurance?▼

Marine Insurance provides financial protection against loss or damage to goods during transit by sea, air, road, rail, or multimodal transport. It covers risks faced during import, export, and domestic movement of cargo.

Who should buy Marine Insurance?▼

Marine Insurance is suitable for: Importers and exporters , Manufacturers and traders , Distributors and wholesalers , Logistics-dependent businesses & E-commerce sellers moving goods regularly

What types of Marine Insurance policies are available?▼

Common types include: Single Transit Policy – Covers one shipment , Open Marine Policy – Covers multiple shipments during the year , Sales Turnover Policy – Based on annual sales value , Import / Export Policy – For international cargo and Inland Transit Policy – For domestic movement

What risks are covered under Marine Insurance?▼

Coverage typically includes: Fire and explosion , Accident to carrying vessel or vehicle , Natural calamities (flood, storm, earthquake) , Natural calamities (flood, storm, earthquake) ,Loading and unloading risks & Coverage depends on the selected Institute Cargo Clauses (A, B, or C).

What are Institute Cargo Clauses (A, B, and C)?▼

Clause A – All-risk cover (widest protection) , Clause B – Named perils (limited risks) & Clause C – Basic cover (minimum risks)

Are warehouse or storage risks covered?▼

Basic marine policies cover transit risks only. Warehouse risks can be covered through add-ons or separate storage insurance policies.

What is the difference between Marine Insurance and Goods Transit Insurance?▼

Marine Insurance is a broader cover that includes sea, air, and inland transit, whereas Goods Transit Insurance usually focuses only on domestic movement.