Marine Insurance

Marine Cargo Insurance covers for any loss or damage to goods in transit by rail, sea, post or air. Owners or bankers of goods in transit/shipment can insure the goods. Usually, the following goods are insured.

• export and import shipments
• goods in transit by rail sea road air or post
• goods carried by coastal vessels plying between the various ports within the country
• cargo transported by small vessels or country craft over inland waters
• goods moved from place to place by river transport

The policy covers loss/damage to the property insured due to:

• Fire or explosion; stranding sinking etc.
• Overturning derailment (of land conveyance)
• Collision
• Discharge of cargo at port of distress
• Jettison
• General average sacrifice salvage charges
• Earthquake lightning
• Washing overboard
• Sea lake river water
• Total loss of package lost overboard or dropped in loading or unloading
• War and SRCC is specifically covered

Types of Policies

Open Cover

Open cover is usually issued for import/export. The open cover is a contract effected for a period of 12 months whereby the insurance company agrees to provide insurance cover to all shipments coming within the scope of the open cover. Open cover is not a policy. It is an unstamped agreement. As and when shipments are declared specific policies are issued as evidence of the contract and on collection of premium.

Open Policy

This policy is issued for transit of goods within India. Policy is valid for one year and all transits during the policy period and declared are automatically covered by the insurance company subject to the availability of the overall sum insured.

It is a stamped document. In this case, specific policies are not issued for each consignment. Premium can be collected in advance for the entire estimated value during the policy period. Stamp duty is collected in advance along with premium for despatches to be declared periodically

Specific Voyage Policy

This policy is valid for a single voyage or transit. The policy will be issued before the voyage starts. The coverage will cease immediately on completion of the voyage.

The specific voyage policy must show complete details of the risk. It should contain particulars of conveyance/Vessel name/ Bill of Lading or Way bill and date sum insured terms and conditions of cover voyage cargo description etc like all other marine policies.

Annual Policy

This policy may be issued to cover goods in transit by road or rail or sea from specified depots or processing units owned or hired by the insured. The goods covered must belong to or held in trust by the insured.

These policies cannot be issued to transport operators clearing forwarding and commission agents or freight forwarders or in joint names. They cannot be assigned or transferred.

Marine Insurance Sales Turnover Policy (STOP)

STOP is a designer product for the discerning customer, an Open Policy in the real sense of the term. The premium for the policy is charged only on your sales turnover.