Difference between Marine Open Cover & Marine Open Policy

Marine insurance and its advantages cannot be ignored if you are in a shipping business or your business needs frequent transit of goods from one place to another. However, it is easy to get mixed up between the marine open cover and marine open policy. This article discusses the difference between marine open cover & marine open policy.

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Marine Insurance and Classification

Marine insurance is a type of insurance policy offering coverage for any loss or damage caused to goods/cargo, vessels, terminals, and goods in transit from one place to another.

Marine Open Cover And Open Policy

With multiple marine insurance options available, choosing the right one that suits your business needs is essential. Marine Open Cover and Marine Open Policy are two main types of marine insurance available.

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What is a Marine Open Cover?

A marine open cover is a type of marine insurance policy wherein the insurer offers to insure all the goods/cargo to be shipped during the policy term. This cover is usually bought by companies that make regular shipments. This takes away the additional effort of purchasing a new policy each time the shipment is made. Thus, it helps in providing blanket coverage to the shipments.

Marine shipping involves high risks and uncertainties. A marine open cover is typically used for international trade and by firms that frequently deal with high-volume trade over long periods. This type of policy can either be a renewable policy or a permanent policy.

What is a Marine Open Policy?

A marine open policy is a marine insurance policy that covers multiple shipments for a period of 12 months, depending on the sum insured. The sum insured is adequately large, and adjustments are made as per the reducing balance method against the value of each cargo. A marine open policy is opted by traders needing to dispatch cargo frequently over a stipulated period.

In a marine open policy, as per the thumb rule, the sum insured needs to be at least four times the limit per sending or single carrying limit. Also, the premium is always paid in advance as per the projected sum insured.

Since the sum insured as per the marine open policy is adjusted, this adjustment of the sum insured and the premium are done on basis of the submission of each voyage declaration. There is also an option to improve the sum insured up to four times a year.

In case of any genuine omission or faulty declarations, corrections are permissible after proper inspection. After the policy expires, a refund is allowed on the premium on the unadjusted sum insured.

Conclusion

To sum it up, a marine open policy can thus cover multiple requirements for your business. In contrast, a marine open cover policy helps you enjoy a single blanket coverage for continuous business without having to buy a new policy for every shipment.

Written By: PolicyBazaar - Updated: 16 November 2023

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Policybazaar for Business - Marine Insurance - Customer Reviews
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4.3/5
Based on 114 reviews
4.3
out of 5
Based on 114 reviews
14 users
87 users
13 users
0 users
0 users
3.8 April 20, 2023
Anas
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.
Mizoram
4.3 April 03, 2023
Vaishnav
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.
Assam
4.3 March 17, 2023
Umang
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.
Chennai
4.3 February 28, 2023
Vishal
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
Gurugram
4.3 February 11, 2023
Parth
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.
Noida
3.8 February 10, 2023
Rishabh
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.
Jamshedpur
3.8 January 31, 2023
Arvind
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.
Ajmer
3.8 January 21, 2023
Vishal
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.
Mumbai
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.
Pune
3.8 January 01, 2023
Kunal
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.
Indore