What is the Limit Per Sending in Marine Insurance?

Marine insurance and its advantages cannot be ignored if you have a shipping business or your business requires frequent transit of goods However, with numerous policies available, each with a distinctive feature, understanding the associated terms can be quite challenging. In the article below, our focus shall be on the concept of Limit Per Sending in Marine Insurance

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Limit per Sending in Marine Insurance

Limit per sending in marine insurance is also known as PSL in marine insurance. It is the maximum limit of liability that the insurer assumes for goods belonging to the insured that are to be carried through a single transit.

The policy may have a single PSL across different modes of transportation or specifies different limits per sending for different modes of conveyance. The limit per sending in marine insurance is fixed at the time of purchase of the policy based on the various requirements as per the insured.

If at the time of the claim, the value determined is higher than the limits defined as per the policy, the insurer shall have to pay for a rateable proportion of the loss as the Limit Per Sending.

The limit per sending in marine insurance is also referred to as the ‘bottom limit’ or, more commonly, as the ‘conveyance limit’.

Learn more about Marine Insurance

Limit per Location in Marine Insurance

The limit per location in marine insurance refers to the highest value an insurer is exposed to at any one location during the transit.

Moving forward, let us also tell you that a marine insurance policy can be broadly divided into two, Open Policy and Specific Policy.

Open Policy v/s Specific Policy

Marine cargo insurance has become more popular these days, mainly because of the increased geographical expansion and ease of doing business especially post-pandemic. However, a persistent and relatively more significant number of threats are faced by businesses during marine transport.

Natural factors like deteriorating conditions of the environment and an increase in the number of instances leading to cyclones and hurricanes have posed potential risks to maritime transport in recent times.

Open Policy: An open policy provides coverage for multiple numbers of transit journeys during the policy term. An open policy benefits large companies with high-volume trade, as buying an insurance policy for each transit may not be feasible.

The insured is required to declare details of all shipments made during the period, the type of goods, transportation modes, destination details, etc. This type of policy generally covers all the transit of the insured till the policy is cancelled, ended or until the last payment realization, whichever is earlier.

Marine Open Policy is based on agreed conditions of “Limit of Liability”. Under these conditions, the insured agrees to the maximum sum insured of the total value of the shipment. This shipment is applied to any one conveyance or any one location.

This is a necessary condition for the insured. The “Limit of Liability” means that the insurer is not liable for the shipment(s) for a sum exceeding this agreed limit.

Thus, the features of the open policy include:

  • Multiple transits during the policy term (usually one year)
  • Fixed sum insured
  • Coverage is decided as per the Limit per Sending
  • Coverage is decided as per the Limit per Location

Specific Policy: As the name suggests, the specific policy which is usually known as single transit covers goods in transit for a particular journey. Unlike open policy, this policy is not time-based but ends when the ship or the vessel arrives at the destination.

Both policies cover are available for inland marine insurance (within India), import (from a country outside India to India) and export (from India to a country outside India).


If an entity deals in multiple shipments in a year, it is very difficult and time-consuming to insure goods for each shipment. One can insure all goods in transit in a single open policy for easier handling. Having said that, understanding the role of limit per sending in marine insurance and other related terms is crucial before buying.

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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.