Do Past Claims cause Higher Premiums in Marine Insurance Policy?

Yes, your past claims history can indeed affect the premium you pay for your marine insurance policy. It's a common concern among policyholders, and understanding how past claims influence your insurance costs is crucial. Here's what you need to know:

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1. Past Claims and Renewals:

When you renew your marine insurance policy, your insurer takes a close look at your claims history. If you've had a history of frequent or substantial claims, your insurer may decide to increase your premium. This is because a higher claims frequency suggests a greater risk associated with insuring your cargo. However, it's important to note that the impact on your premium may vary depending on the insurer and the nature of your claims.

2. Shopping for a New Policy:

If you're seeking coverage from a new insurer, your past claims may still have an influence on your premium, albeit differently. New insurers will consider your claims history when assessing your risk profile. While you might find somewhat lower premiums compared to your previous insurer, the extent of the reduction will depend on factors like the severity and frequency of your past claims.

3. Defining Substantial Claims:

Whether your claims are considered substantial or minor is typically determined by the marine insurance company. It's advisable to communicate with your insurer to gain clarity on how your claims history might affect your premium. This way, you can better understand the criteria they use to evaluate your claims.

Other Factors Impacting Premium:

Aside from past claims, several other factors can influence the premium of your marine insurance policy:

  • Nature and Value of Goods: The type and value of the goods you're insuring play a significant role in premium calculation.
  • Route and Vessel Type: The specific route and the type of vessel used for transportation are considered when assessing risk.
  • Inherent Risks: The nature of your products and any inherent risks associated with them can affect your premium.
  • Destination: The final destination of your goods can impact your premium, especially if it involves areas prone to specific risks.
  • External Factors: Events like strikes, riots, or civil commotion along the route can also influence premium rates.
  • Additional Premium-Influencing Factors: Several other factors may lead to premium adjustments in your marine insurance policy:
  • Natural Forces: The vulnerability of ports, especially those lacking adequate protection against natural perils, can impact your premium.
  • Vessel Construction and Type: The quality and suitability of the vessel used for transportation are assessed by underwriters when determining premium rates.
  • Vessel Age: The age of the vessel can be indicative of crew experience and skill level, which may influence premium rates.
  • Policy Coverage: The extent of coverage outlined in your marine insurance policy can also play a role in premium calculations.

Case Studies

Here are a couple of real-world scenarios illustrating how past claims can affect your marine insurance premium:

Case Study 1

K.S Shipping: A fire damaged a vessel during a consignment transit, resulting in a substantial claim. When K.S Shipping sought policy renewal, the insurer considered the previous claim, leading to an increased premium.

Case Study 2

K.G Engineering: K.G Engineering, a Delhi-based engineering company, secured marine export insurance for a high-value consignment. The premium rates were determined based on various factors, including the value of goods, vessel type, and structural strength, showcasing the multifaceted nature of the premium calculation.


Past claims can indeed impact your marine insurance premium. Understanding the factors at play and communicating with your insurer can help you navigate these considerations effectively, ensuring that you make informed decisions when it comes to marine insurance in India.

Written By: PolicyBazaar - Updated: 12 September 2023
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Policybazaar for Business - Marine Insurance - Customer 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.