Various Aspects of Marine Cargo Insurance
- DetailsWritten by PolicyBazaar -
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Updated date : 23 March 2021
Marine Cargo Insurance refers to the kind of insurance that provides coverage against any loss or damage caused to the ships, cargo vessels, terminals while transporting the goods from one point of origin to another. Whereas marine insurance gives coverage against any damage caused to the ship, the Cargo insurance covers any damage caused to the goods carried by the ship. So, let us start with the broader concept- Marine Insurance.
Importance of Marine Insurance Policy
It is important for the shipping companies or the goods carrier companies to get marine cargo insurance before the transportation of the goods from one point of origin to another. However, the insurance coverage is not only limited to sea, there are different plans that offer coverage during railway, land, sea and air transportation.
Types of Marine Insurance
There are different types of marine insurance plans that are designed for different needs of the customers. However, the types may vary from one insurer to another.
- Marine Cargo Insurance
- Hull Insurance
- Liability insurance
- Freight insurance
Marine Cargo Insurance
This insurance policy covers the loss or damage caused to marine cargo during the transportation. Marine cargo insurance also covers third-party liabilities, which arise from any damage or loss caused to the ship, port or other transport forms from the insured cargo. It also includes coverage for injuries, illnesses or even loss of life caused by vessel operation.
This type of insurance offers protection for physical damages to the ship, vessel along with its operating equipment, including machinery.
Liability insurance protects the ship in case of a crash, collision or any attack that can lead to labilities.
In Freight insurance, if the goods are damaged during the transport, the operator would lose freight receivables and so the insurance will be provided on compensation for loss of freight.
Inclusions and Exclusions in Marine Cargo Insurance
The policy provides coverage from the risks arising during transit via sea and other modes of transport. The insured gets the compensation for the following:
- In case of collision, overturning or derailment of land conveyance
- Coverage for general average sacrifice salvages charges
- In case of any natural calamity
- It covers survey fees, forwarding expenses, costs of reconditioning and charges of sue
- Covers the total loss of package whether overboard or dropped amidst loading or unloading
Moving on to the Exclusions in the Marine Cargo Insurance
The policy usually doesn’t offer coverage under the following conditions:
- When the packaging is not up to the mark.
- Compensation is not provided for intentional damage.
- If the loss occurs due to the delay in the cargo.
- Any loss resulting due to insolvency.
- No coverage is provided if the damage occurred due to bankruptcy, liquidation, failure/collapse in the finances.
- Not all insurers cover situations like war, strikes, riots etc.
- Wear and tear of the good while transport are excluded.
Basic Difference between Marine and Cargo Insurance
Marine Insurance is comprehensive and wide in nature. Marine insurance is customizable, which depends on who buys the cover. For example, the owner of a ship can buy a hull insurance policy to manage the risk associated with vessel related mishappenings.
Whereas Cargo insurance coverage can be availed either only for named perils or for wider coverage including unnamed perils. Parties involved in the movement of cargo can avail marine insurance for cargo to maintain the financial stability of their business.
Moving on to the claim process- after buying the marine cargo insurance, in case you need to make claim under the policy, kindly follow these steps mentioned below:
- In case of damage and loss to the ship or the cargo, inform the insurer immediately.
- A surveyor will assess the loss and damage mentioned.
- All the witnesses and proofs need to be submitted along with the duly filled-in claim form.
- If a package is missing, the insured must lodge file a monetary claim with the insurance provider and get acknowledgement.
Advantages of Marine Cargo Insurance
If you are in transportation business, whether it is done through sea, road or air, it always makes sense to go for Marine Cargo Insurance. Here are some advantages or should we say some reasons for you to purchase Marine Cargo Insurance.
- It provides financial stability to your business.
- It compensates for any financial loss that you might face during the transportation of goods.
- It helps in managing the risks and lets you conduct your business without worries.
Companies Providing Marine Cargo Insurance in India
Since India is surrounded by sea from three sides, shipping is an important sector that aids to the nation’s economy. Hence, these shipments should be covered as well. Here are some companies that provide marine insurance in India:
- Bajaj Allianz General Insurance Co. Ltd.
- Bharti AXA General Insurance Co. Ltd.
- IFFCO Tokio General Insurance Co. Ltd.
- HDFC ERGO General Insurance Co. Ltd.
- Liberty General Insurance Co. Ltd.
- New India Assurance Company Ltd.
- Royal Sundaram General Insurance Co. Ltd.
- TATA AIG General Insurance Company Ltd.
- United India Insurance Company Ltd.
- All major banks and financial institutions
Wrapping it Up!
The aforementioned aspects are quite essential to consider while buying a Marine Cargo Insurance policy. To protect your cargo business from those unforeseen perils, you should consider this insurance, which can be bought easily online.
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