Marine Insurance

Marine insurance covers the loss or damage caused to the goods during transit between the point of origin and destination. The insurance policy also provides coverage for the exposed goods, kept onshore or offshore, marine liability or casualty and hull.

₹10 lakh cover @ ₹591/transit*

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Marine Insurance Meaning

Marine insurance policy is not restricted to the transportation of goods that are done through the seaway only but it also provides cover to the transportation of goods through roads, air and railways.

Marine Insurance Act, 1963

The Marine Insurance Act was passed in 1963 to protect insurers and their clients against loss caused by marine ventures. The law states that when a person says they have insurance, it means there's a chance for them not having any problems if something goes wrong with what you're insuring against - like your ship getting lost at sea.

Importance of Marine Insurance

Marine insurance is a mandatory requirement for many import-export trade proceedings. Both parties are legally liable to cover the cost of goods under marine coverage, but it's not just about contracts - there are several valid arguments that must be made before admitting you need this type or protection when shipping out your cargo.

Types of Marine Insurance Policies

There are different types of marine insurance policies that are designed to cater to the different needs of the customers. However, it can vary from one insurance provider to another.

Types of Marine Insurance Policies
Types of Marine Insurance Policies


Any kind of import from anywhere in the world to anywhere in India is covered. This type of policy covers transit modes of Air and Sea.


Any kind of export from anywhere in India to anywhere in the world is covered. This type of policy mostly covers transit modes of Air and Sea.

Inland Marine Insurance

Any kind of transportation of goods mostly by road and rail from anywhere to anywhere in India is covered.

Marine Cargo Insurance

Marine Cargo insurance is a type of insurance policy that covers the loss or damages caused to marine cargo during 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

Hull Insurance

This marine insurance policy provides coverage to the 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 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:

  • Open Marine Insurance Policy: An open policy is issued for a specific time period and covers all the shipments during that duration.
  • Time Plan: When a plan is bought for a specific period it is called a time policy. This policy is generally valid for a year or so.
  • Voyage Plan: This plan is can be bought by those who wish to ensure a specific sea voyage. The moment the journey ends, the plan will be expired.
  • Mixed Plan: When a policy provides the advantage of both a voyage plan and a time plan, then such a plan is referred to as a mixed plan.
  • Port Risk Plan: When the ship is stationed at the port, a port risk plan is useful to ensure that it is protected against the risks involved.
  • Valued Plan: Within this plan, the value is determined either of the cargo or the consignment, which is mentioned in the document of the policy in advance. This helps in case cargo or consignment gets lost determining the insurance value.
  • Floating Plan: Under this plan, the amount of claim is specified beforehand. It is to be noted that the other details cannot be disclosed until the ship starts with the voyage. This plan is best suited who undertake regular cargo transportation trips.
  • Wager Plan: This plan does not have any predefined fixed repayment terms, nevertheless, if the safety net provider finds any shortfall or harm deserving of cases, at that point reimbursement is given. If the harms are not worth considering, at that point there will not be any remuneration.

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Type of Plans Under Marine Insurance Policy

There are two types of plans under the Marine insurance policy:

Type of Plans Under Marine Insurance Policy Type of Plans Under Marine Insurance Policy

Open Policy

This plan covers multiple transits for the whole year.

  • There is a fixed sum insured amount in the open policy.
  • The coverage is decided according to per sending limit.
  • The coverage is decided according to per location limit.

Specific Policy

Under this plan, the insurance company provides coverage to the insured for a specific single transit.

Types of Coverage Under Marine Insurance

There are two types of coverage clauses in a Marine insurance policy. They are as follows:

Types of Coverage Under Marine Insurance Types of Coverage Under Marine Insurance
  • ITC A & B (All-risk Coverage & Basic Risk Coverage)

ITC stands for Inland transit clauses and it is for inland transits in India only. Whereas ITC-A covers all damages except rainwater damage and ITC-B covers only accidental damages.

  • ICC A & B (All-risk Coverage & Basic Risk Coverage)

ICC stands for International cargo clauses and it is for international cargo only. Whereas ICC-A covers all damages except rainwater damages and ICC-B covers accidental damages only.

What is Covered in Marine Cargo Insurance?

Marine insurance covers the risks arising during transit via sea and other modes of transport. The insurer compensates for the following:

Marine Insurance Coverage Marine Insurance Coverage
  • Marine insurance coverage is provided for dire situations like fire or explosion, sinking or stranding during a cargo journey.
  • Compensation is provided for expenses incurred due to collision, overturning or derailment of land conveyance.
  • Compensation is provided for expenses under a circumstance wherein the cargo is discharged from a port of distress/disturbance.
  • Coverage for general average sacrifice salvages charges.
  • Protection against any natural calamities such as an earthquake or lightning.
  • It covers expenses such as survey fees, forwarding expenses, costs of reconditioning, washing overboard and charges of use.
  • It also covers situations like jettison and washing overboard.
  • It also covers the total loss of the package whether overboard or dropped amidst loading or unloading.
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What is Not Covered in Marine Cargo Insurance?

Marine insurance coverage is not provided under the following situations:

Marine Insurance Exclusions Marine Insurance Exclusions
  • Compensation is not provided for any intentional loss/damage.
  • When the packaging quality of the cargo is not appropriate.
  • No cover shall be provided if the damage occurs due to bankruptcy, liquidation, failure/collapse in the finances.
  • When the packaging quality of the cargo is not up to the mark that is why it is excluded from the basic coverage.
  • Wear and Tear of the goods in transit.
  • No cover shall be provided if the loss occurs due to a delay in the cargo.
  • Not all insurers cover extreme unpredictable situations like war, strikes, riots and civil commotion.
  • Any loss or damage resulting due to insolvency.
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What Does the Institute Cargo Clauses Cover?

Marine insurance coverage is based on the Institute Cargo Clauses. And the coverage available under these standard clauses includes the following:

Institute Cargo Clauses Coverage Institute Cargo Clauses Coverage
  • Constructive Total Loss
  • Actual Total Loss
  • Particular Average i.e. Partial Loss by an insured peril
  • General Average
  • Collision Liability
  • Expenses such as Reconditioning Costs, Survey Fees, Forwarding Expenses, Sue and Labor, etc.

Principles of Marine Insurance

There are six principles of marine insurance however the principle of good faith is commonly agreed upon among all the involved parties which makes it mandatory. Apart from good faith, here are the other five principles of marine insurance:

Marine Insurance Principles Marine Insurance Principles
  1. Indemnity

    The principle of indemnity creates a difference between marine insurance and speculative product for capital markets. Where a put or call contract is used in the capital market for both making profit and hedgings. However, there are different types of marine insurance plans that are specifically designed to provide coverage against losses making the payable claims never to exceed the loss incurred by the insured.

  2. Insurable interest

    Insurable interest refers to the point where the insurer must have some kind of interest in the safe arrival of the transported goods to the final destination. If goods arrive at the final destination on time and are undamaged then the insured gets the benefits, however, otherwise the insured has to bear the loss. If the insured’s loss or gain is not borne immediately, they should expect to bear it soon. This is how the insurance protects the insured’s ‘interest’.

  3. Proximate Cause

    Proximate cause refers to the series of events that led the insured entity to the final total or partial loss. Hence if those series of events that led to the final total or partial loss were mentioned in the insurance policy documents during the purchase then the insurer will provide coverage for that loss accordingly.

    For example, a loaded truck begins the journey from Lucknow and the final destination is New Delhi. It is winter and there is dense fog due to which the driver could not spot the robbers waiting ahead on the highway which they have blocked with spikes. The spikes burst the tyres as soon as the truck crossed it and then, the robbers stole the material at gunpoint and ran away.

    So, in this scenario, the leading cause of the final loss was the fog and if the insurer has mentioned in the insurance policy under proximate cause then they will have to provide coverage for that final loss.

  4. Subrogation

    Subrogation refers to the scenario where the insurer provides you coverage of Rs 50,000 on a particular cargo. If it gets damaged in an accident and the insurer pays you Rs 40,000 for that loss. However, you sell the damaged product for Rs 30,000 so the total cash you received would be Rs 70,000. Under the subrogation principle, the extra amount that you received which is Rs 20,000 must be returned to the insurer.

  5. Contribution

    The principle of contribution refers to the scenario where a particular cargo is insured by two insurers. In this scenario under the contribution principle, the claim amount is supposed to split between both insurers.

Finding the Best Marine Insurance Policy Online

In India, there are a plethora of insurance companies that 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 and don't forget to check out the features of marine insurance plans as well.

Claim Process for Marine Insurance Policy

Here is the process you need to follow to raise a claim under marine insurance:

Marine Insurance Claim Process Marine Insurance Claim Process
  • The insured has to inform the insurer about the loss or damage. If the policyholder is unable to inform the insurer then somebody else can do it on his behalf.
  • If at the time of taking the delivery of goods, any package is externally damaged then the policyholder must ask for a detailed survey by the surveyors and also lodge a monetary claim with the shipping company.
  • In case of a missing package, the policyholder must file a police report and get proper acknowledgment because the insurer can ask for a police report the claim is related to theft.

Documents Required to Raise Claim Under Marine Insurance

Below is the list of documents that are required for the claim process:

Documents required to claim Marine Insurance Documents required to claim Marine Insurance
  • Copy of insurance policy of documents
  • Survey Report
  • Copy of billing lading
  • Claim Bill
  • Original Invoice list together with shipping specification
  • Copies of letter exchanged with the carriers

Once the claim is successfully filed the insurer will provide the URN/claim number, which 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 them from further damage or loss.

Marine Insurance- FAQs

  • Q: Where do I get the list of insurance companies offering Marine Insurance in India?

    Ans: In India, various financial institutions, including major banks offer Marine Insurance. If we talk about insurance companies, then you can go for: 1. Bharti AXA 2. New India Assurance Co. Ltd. 3. Tata AIG 4. HDFC Ergo 5. Royal Sundaram 6. United India Assurance Co. Ltd 7. Cholamandalam Insurance Company
  • Q: How can I make a claim, in case of a cargo emergency?

    Ans: The claim process of Marine Insurance is simple. Below are the steps to make a claim: 1. Inform the insurer immediately by approaching the claim representative or visiting the nearest branch 2. In case of damages caused to the goods that are on the ship, a port or joint ship must be arranged by you 3. Submit the policy document and other relevant documents, which may be required to testimony your claim
  • Q: What are the various plans covered under Marine Insurance?

    Ans: A plenty of plans are offered under Marine Insurance. A few of them are: 1. Voyage Plan 2. Mixed Plan 3. Time Plan 4. Port Risk Plan 5. Floating Plan 6. Wager plan 7. Valued Plan
  • Q: What are INCO Terms in Marine Insurance?

    Ans: Incoterms are used in international trade to determine the point at which responsibility for delivering goods changes between buyers and sellers. Incoterm inform sales contracts defining respective obligations, costs (including insurance), risks involved with delivery from one party as well an agreement on how long it will take before those items can be delivered.

    Here are some of the commonly used INCO terms:

    Ex Works (EXW): Once the seller place the goods at the buyer’s disposal, insurance and carriage are arranged by buyer.

    Cost, Insurance, Freight (CIF): Seller delivers once the goods have been passed through the ship’s rail in the shipment port. It is mandatory for the seller to pay the cost and freight to bring goods to the destination however the risk is transferred to the buyer from seller.

    Free On Board: Seller delivers once the goods have been passed through the ship’s rail at the named port of shipment. It means that the buyer will have to bear the costs and risk from that point onward.

    Here are some of the other INCO terms that are used in the market:

    CIP: Carriage and Insurance Paid

    DAP: Delivered At Place

    DDP: Delivered Duty Paid

    CPT: Carriage Paid To

    DAT: Delivered At Terminal

    FCA: Free Carrier

    EXW: Ex Works

    Rules for Inland Waterway & Sea Transport Only

    CIF: Cost, Insurance and Freight

    CFR: Cost & Freight

    FOB: Free On Board

    FAS: Free Alongside Ship

    Note: These are the new INCO terms 2020. These have been published recently.

  • Q: What are the factors to be considered while buying marine insurance coverage?

    Ans: There are factors to be considered in order to ensure the right marine insurance policy. Firstly, the reputation of the insurer and its financial background. Following this one must ensure that the insurer has a robust marine claim department. Secondly, the coverage should aptly be designed as per your insurance needs. Moreover, the premium should be affordable. Third, prefer buying marine insurance online. Some insurers offer discounts on their plans when you buy online. Fourth, analyse your needs first, then buy. The one suits the others may not be proved as useful to you. So, review your needs and buy accordingly.
  • Q: I want to buy a one-year policy that covers all my shipment. Where to buy it from?

    Ans: There are insurance providers in India who offers marine insurance. You can approach one of them. The best part is, you need not have to visit them physically, you can go to their websites, compare the plans and buy according to your requirements.
  • Q: How is the premium of marine insurance decided?

    Ans: The premium is decided based on the following factors: 1. Type of ship 2. Age of the ship 3. Valuation or cost of the ship 4. Trading and tonnage limits of the ship 5. Management and ownership terms of the ship 6. Type of insurance cover required
  • Q: Who can buy Marine Insurance?

    Ans: Those who own a ship & cargo with an insurable interest in the boat or ship can buy marine insurance.
  • Q: Who is deemed to have an insurable interest under a marine insurance policy?

    Ans: 1. The owner of the ship 2. The owner of the cargo 3. The master and crew of the ship 4. The creator who has advanced money on the security of the boat or ship 5. The mortgagor if the insurable subject is mortgaged 6. A trustee with a property in trust 7. The person advancing the freight
  • Q: What are the types of sales contract under Marine insurance in India?

    Ans: The types of contract under marine insurance are: 1. FOB Contract- Free on Board 2. FOR Contract- free on Rail 3. C&F Contract- Cost &Freight 4. CIF Contract- Cost, Insurance & Freight
Average Rating
(Based on 93 Reviews)

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Marine Insurance Reviews & Ratings
4.3 / 5 (Based on 93 Reviews)
(Showing Newest 10 reviews)
Surat , October 08, 2022
The website is really informative and resourceful. They have every type of information related to insurance which helped me in buying a really economical plan for my ship.
Dadri, October 07, 2022
Affordable Premium
I bought marine insurance online and the process of buying it was so smooth and also did not require any paperwork. I have bought it for longer periods and the premiums are affordable.
Gurgaon, October 06, 2022
Knowledgeable Team
I bought marine insurance as products can easily get damaged on the voyage. I had a query and the Policybazaar cleared my doubt very quickly. Their representative was also well-spoken and friendly.
Bangalore , October 05, 2022
Quick Renewal
I could quickly renew my marine insurance policy from Policybazaar and got a very great deal. Bought a quite expensive cover last time and this time got a very economic deal with Policybazaar. Very Happy!
Kerela, October 04, 2022
Full coverage
I have a transportation company where we transport goods via ship. Wanted an insurance cover that offered me full coverage and timely claim settlement. Landed on Policybazaar and was surprised to see so many affordable plans. The purchase process was also very smooth.
Ahemdabad , October 03, 2022
User friendly website
The Policybazaar website is user friendly as it gives you all the info you need without much efforts. Moreover, you can get right premium estimations within a matter of second. Really amazing interface.
Kanpur , October 02, 2022
Pleased with them
Very much pleased with their customer support as they answer all your queries diligently. Had some questions before buying a marine insurance policy and the team answered them all.
Delhi, October 01, 2022
Low cost plans
Got a very affordable and low cost plan from Policybazaar. Love how easy was their purchase process and how conveniently I could compare plans before buying
Bhopal, September 30, 2022
No agent
I purchased a marine insurance cover for my cargo from Policybazaar without the involvement of any agent. Got the plan in budget and there was no headache of an agent in between. Easy and quick!
Indore, September 29, 2022
Great plans
Wanted a marine insurance plan for my cargo transportation business. Visited Policybazaar and found some really great plans along with their distinct features. The add ons offered were also very useful.