5 Clauses an Exporter Should Consider While Buying Marine Insurance

An exporter has several clauses to consider while buying marine insurance. A marine policy covers several types of losses and damages caused to the ship, cargo and its machinery and equipment. The coverage of the marine policy is accentuated in the insurance contract. Hence, the insured must consider the clauses written under the insurance contract before signing the agreement.

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Clauses to Consider While Buying Marine Insurance

The marine incidents are unforeseeable. It may occur at any moment. Therefore, the exporter and business must subscribe to marine insurance policies in order to evade the losses.

However, the exporter must note that every contract includes several clauses which are subject to abide by the parties. A marine policy is also a contract between the insurer and the insured. Hence, the clause contained in the agreement shall be enforceable.

Let us discuss the clauses to consider while buying marine insurance.

Perils Coverage

The perils or risks in the marine policy include the following.

Maritime Risks

The maritime perils include two events created by god and humans. The God events include earthquakes, storms, lightning, volcanic eruption, collisions, etc. While man-made events include, fire, piracy, vandalism, smoke, etc.

Extraneous Perils

These risks commonly occur due to faults in loading, unloading or carrying of the goods.


The insurance policy covers a war clause under the risk section. The war includes revolution, civil war, etc. Nonetheless, the seizure of goods by customs officers shall not be covered under such a clause.


It includes damages or loss caused to the ship due to strikes, riots, or labour disturbances on the ship. Further, it also includes terrorist activities.

Institute Cargo Clause

The institute cargo is an important clause to consider while buying a marine insurance policy.

These clauses are:

Institute Cargo Clause A

It is also an 'all risks' clause since it covers maximum risks. The insured may obtain the widest coverage upon including clause A. As a result, it is the most expensive clause in marine policy.

Institute Cargo Clause B

The insured is required to pay a moderate sum in order to add clause B to the insurance contract. The coverage under clause A is restrictive to some risks. As a result, the insured obtains claims for partial cargo.

Institute Cargo Clause C

It is the most restrictive clause among clauses A, B, and C. It covers limited risks. The main risks covered by this clause are:

  • Collision
  • General Average
  • Fire or explosion
  • Average sacrifice

At and From Clause

The ‘at and from clause’ is essential clause to consider while buying a marine insurance policy. It generally covers hull and freight insurance. The risk is covered when it starts. For example, if the clause mentions 'at and from Chennai', the policy shall cover the risk from the time the ship is present at the Chennai port and departure from the port.

Warehouse to Warehouse Clause

It ensures the safe arrival of products from one warehouse to another warehouse. In other words, this clause covers the risks at land along with the risks involved at sea. For example, in order to export the goods, the insured called it from the warehouse to bring it to the port. Further, while unloading the goods, the shipper sends them to keep in the warehouse.


This clause is applied in an emergency. Under this clause, the insured throw some goods present in the ship in order to lighten the weight and avoid the risk of sinking. The master of the ship is required to determine the item to be unloaded from the ship. However, this clause is only applicable if the insured succeeds in his activities.

Learn more about Marine Insurance


There are several other clauses to consider while buying marine insurance policies. These clauses include the memorandum clause, valuation clause and others. An exporter must consider such clauses before subscribing to a marine insurance policy.

Written By: PolicyBazaar - Updated: 11 April 2023

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Policybazaar for Business - Marine Insurance - Customer Reviews
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Based on 114 reviews
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3.8 April 20, 2023
Great Experience
I recently purchased Marine insurance from Policybazaar for my shipping business and I must say I am thoroughly impressed with their service and coverage. From start to finish, the experience has been smooth and hassle-free.Thankyou.
4.3 April 03, 2023
Provides Comprehensive Protection
When it comes to coverage, Marine insurance that i bought from PolicyBazaar has exceeded my expectations. It provides comprehensive protection for my cargo and vessels during transit, ensuring I can focus on my business operations with peace of mind. Thankyou.
4.3 March 17, 2023
Excellent Services
I highly recommend Marine insurance from PolicyBazaar website to anyone in the shipping or logistics industry. Their user-friendly website, comprehensive coverage, and excellent customer service make them stand out from the competition. With Policybazaar, I feel confident in navigating the high seas, knowing that my business is well-protected. Thank you, Policybazaar.
4.3 February 28, 2023
User Friendly Interface
The website's user-friendly interface made it easy to compare different plans and find the perfect fit for my business needs.Thanks
4.3 February 11, 2023
Prompt Services
I appreciate the transparency and honesty with which Policybazaar handled my claims. They were prompt in processing my claim and their claim settlement process was hassle-free.Thanks PolicyBazaar.
3.8 February 10, 2023
Exceeds Expectations
I recently had the pleasure of purchsing marine insurance from Policy bazaar website and I must say it has been an outstnding experience from start to finish. I am thrilled to share my positive customer review, as this truly exceeded my expectations. Thanks PB.
3.8 January 31, 2023
Easy Navigation
The ease of navigating the Policy bazaar website and finding the right marine insurance policy was impressive. The website's user-friendly interface and intuitive design made it incredibly simple to compare various options, understand the coverage details and make an informed decision. I appreciated the transparency provided throughout the process. Thanks.
3.8 January 21, 2023
Excellent Support
The customer service provided by Policy bazaar was decent. Their team was responsive, knowledgeable and went above and beyond to assist me at every step. Their professionalism and commitment to customer satisfaction were truly commendable.Thankyou.
4.3 January 11, 2023
Sanjeev Rathor
Efficient Process
When it came to claims processing, Policy bazaar demonstrated remarkable eficiency and effectivenes. I had an unfortunate incident during the coverage period and filing a claim was a breeze. The entire process was streamlined and their team guided me throuugh every necssary step, making it hassle-free. The promptness with which my claim was setled reflected their commitment to their customers' well-being and peace of mind. Thankyou.
3.8 January 01, 2023
Comprehensive Coverage
I must mention the comprehensive coverage provided by the marine insurance policy I purchasd through Policy bazaar. It offered me the necesary protection and peace of mind. Thankyou PolicyBazaar.