Cargo Insurance

Cargo insurance is a legal contract between the insurer and the policyholder. It is designed for individuals involved in import & export business and use cargo ships, airplanes, trains, etc. to transport their goods from one place to another must purchase this policy. A marine cargo insurance policy is one of the best insurance covers that will help you safeguard your valuable cargo anywhere in the world. A cargo insurance policy will protect your cargo from any loss or damage caused during transit via road, sea, rail, or air.

Read more
Protect your goods from losses or damages just ₹500*
₹10 lakh cover @ ₹591/transit*

Expert Advice

Buy Right

Instant Policy

Quick & Hassle free

Dedicated Team

Speedy Claims

*Premium varies on the basis of Occupancy, Business Activity & Coverage Type

Please share some basic details
Step 1/2
Or Contact us on: 1800-309-0988
Get Updates on WhatsApp
By clicking on "" you agree to our Privacy Policy and Terms Of Use

*Premium varies on the basis of Occupancy, Business Activity & Coverage Type

Just a step away from the quotes
Step 2/2
Or Contact us on: 1800-572-3918
Get Updates on WhatsApp
By clicking on "" you agree to our Privacy Policy and Terms of Use

What is Cargo Insurance?

Cargo Insurance policy is designed to provide indemnity cover for goods/cargo carried through different modes of transport and transit. A lot of money goes in packaging and transporting shipments. And any loss or damage would mean a huge loss. To cover up such losses, it is important to have cargo insurance in place.

Freight insurance can also be taken for goods during shipment. It helps in mitigating the risks related to the shipping process and helps you ship your goods in a secure manner. You can buy freight insurance directly from the shipper or an insurance provider.

Types of Cargo Insurance Policies

There are various types of cargo insurance in India. You can buy cargo insurance cover that suits most of your requirements such as import, export, transit within India, single voyage etc. Let’s have a look in detail-

  • Open Cover- An open cover cargo insurance policy is suitable for goods that are imported and exported. It is issued on a contractual basis for a period of 12 months. Under open cover cargo insurance, the insurance provider agrees to cover all the shipments that are within the scope of coverage. An open cargo insurance cover policy is based on an unstamped agreement.
  • Open Policy- This cargo insurance policy is issued to cover the transit of goods within India. An Open policy is valid for a year. It covers all the goods in transit that are declared by the policyholder, which is subjected to the overall sum insured limit. It is issued on a stamped document. And stamp duty is taken in advance along with the premium. Usually, the premium is collected in advance for the complete estimated value during the policy term. In such cases, specific cargo insurance policies are not issued for each shipment.
  • Specific Voyage Policy- This type of cargo insurance cover is suitable for a single transit or voyage. The policy is generally issued before the transit starts. On completion of the voyage, the coverage will cease immediately. The specific voyage policy usually contains all the details of Vessel name/conveyance/ Bill of Lading/ Waybill and date along with policy terms, conditions, and sum insured details similar to the other marine cargo insurance policies.
  • Annual Policy- This type of cargo insurance policy offers coverage to goods in transit by rail, road, and sea from stated depots or processing units that are hired or owned by the policyholder. It is required that the goods covered must be held in trust or belong to the  These policies cannot be issued to transport operators, freight forwarders, commission agents or to anyone in joint names. Annual policies cannot be transferred or assigned.

Why Do You Need Cargo Insurance?

To save your shipments and recover the money invested in such consignments, it is important to have the goods covered under a cargo insurance policy. It is helpful in the following circumstances:

  • Import and export shipments
  • For goods that are moved from one place to another by river transport
  • For goods being transported by sea, rail, air, road or post
  • Goods being transported by coastal vessels from one port to another
  • Cargo moved by country craft or small vessels over inland waters

Coverage Provided in Cargo Insurance Plans

The insurer will compensate you for any damage that is caused to your shipment due to the specified natural and man-made disasters. Cargo insurance usually covers the loss or damage caused to the property due to the following reasons-

  • Collision
  • Explosion or Fire
  • Sinking or Stranding
  • Earthquake
  • Lightning
  • Jettison
  • Spillover or derailment
  • Washing overboard
  • Any damage during discharge of consignment at the port of distress
  • Salvage charges
  • Total loss overboard or while loading or unloading
  • SRCC and war conditions are specifically covered in some cargo insurance plans

Benefits of Purchasing Cargo Insurance Policy

The major benefits of cargo insurance policies are listed below-

  • Cargo insurance plans are freely assignable
  • The existence of insurance interest needs to be established only at the time of loss
  • Most of the marine cargo insurance policies are based on an agreed value
  • Marine car insurance policies are usually transit policies and  are not restricted to a precise period

Does Cargo Insurance Have Limitations?

The policy does not cover loss or damage to cargo insured due to-

  • Fault in the preparation and packaging of the insured cargo
  • Any deliberate attempt or misconduct by the policyholder
  • Delay of the shipment
  • Ordinary leakage
  • Any ordinary loss in volume or weight
  • Any kind of inherent flaws
  • Financial distress and insolvency of the carriers
  • Ordinary wear and tear is not covered under marine cargo insurance

If you file a claim due to the above-mentioned reasons you will not get compensation under your marine cargo insurance policy.


Cargo insurance articles

Recent Articles
Popular Articles
International Cargo Clauses & Inland Transit Clauses in Marine Insurance

13 Aug 2022

Marine insurance coverage is divided into two types. One is...
Read more
Meaning of Insurable Interest in Marine Insurance Policy

10 Aug 2022

Among so many important insurance terms, the meaning of...
Read more
Difference Between Total Loss and Partial Loss in Marine Insurance

23 Feb 2022

Traders who export or import their goods across distant lands...
Read more
Difference Between Total Loss and Partial Loss in Marine Insurance
Traders who export or import their goods across distant lands are aware of the risks during transit. While there...
Read more
Meaning of Insurable Interest in Marine Insurance Policy
Among so many important insurance terms, the meaning of insurable interest in marine insurance can be confusing...
Read more

Cargo Insurance Reviews & Ratings
4.1 / 5 (Based on 14 Reviews)
(Showing Newest 10 reviews)
Delhi, March 08, 2022
Amazing coverage
I have been utilising open cover Cargo Policy for quite some time now. It on contractual basis and this is one that suits my business the most. I like the coverage.
Kolkata, March 03, 2022
Fantastic plan
When it came time to get cargo insurance, we had no problems. It went off without a hitch, and the premiums were quite low. The plan was fantastic.
Ahmedabad, February 26, 2022
Good things to say
I ve only had good things to say about my insurance since I bought it here. It s where you ll have to buy your insurance.
Pune, February 21, 2022
Spillover coverage
There was spill over during the voyage. There were obvious damages. Insurance provided the expenses for the same.
Kochi, February 16, 2022
Specific voyage cover
We took specific voyage insurance as this consignment was for a very spcefic thing. Glad to say everything went well.
Chennai, February 11, 2022
Compensation for overboard damage
In our lst insurance when our goods were lost, we didnt recive any compensation. We were cheated by our insurers. This time we have carefully navigated the place we wanted. It has an extensive coverage and when there was an overboard situation, we were compensated for it.
Mumbai, February 10, 2022
Cheap premiums
There was no trouble no fuss at all when we had to buy our cargo insurance. It went rather smoothly and the premiums were really cheap as well. Loved the plan.
Noida, February 09, 2022
Annual policy cover
We own a shipment business and need insurance for the goods that we ship. For that we had bought the annual policy for ouselves which is cheaper with a reasonable coverage. We bought it from PolicyBazaar.
Navada, February 09, 2022
Quick claim settlement
There was a spillage when our cargo was on its way. Obvious losses happened but thankfully we had the insurance. We were able to claim settlement for the insurance we had bought and recived compensation for it.
Dispur, February 01, 2022
Specific cargo insurance
We had to send a big consignment but only for one journey. So we chose a specific voyage cargo insurance for it. It was only for a single trip so it would close immediately after the delivery. It suited our needs.