While monsoon season brings much-needed rain, it also disrupts logistics and shipping. For businesses that rely on transporting goods by sea, the monsoon poses unique risks. Damaged cargo, shipping delays and increased chances of marine accidents are just a few examples. This is where marine insurance comes into play, offering financial protection against such losses.
Impact of monsoon on marine cargo
Monsoon has a direct effect on cargo safety and delivery schedules. Here’s how:
- Water damage: Heavy rainfall and high humidity can seep into poorly packed containers, ruining goods.
- Port congestion: Bad weather frequently causes delays in loading and unloading cargo, resulting in congestion.
- Increased risk of accidents: Rough seas and reduced visibility can lead to collisions or vessel grounding.
- Delay in customs clearance: Weather-related delays can affect documentation and clearance schedules.
Such uncertainties can have a severe impact on businesses, especially those involved in perishable goods or electronics.
Marine insurance during monsoon
Having a marine insurance policy during monsoon is not optional—it’s essential. This type of insurance helps you recover financially if your goods are lost or damaged in transit due to weather conditions.
Key benefits of marine insurance in monsoon include:
- Coverage for weather-related damages like soaking, rusting or breakage.
- Financial protection against total loss in case of vessel sinking.
- Customisable options, such as single-transit insurance, that suit specific shipping needs.
You should always read the policy terms carefully to understand exclusions related to natural calamities. Taking preventive measures, such as using waterproof packaging and monitoring weather forecasts, can also help reduce risks.
Conclusion
Monsoon brings many challenges to marine cargo. But with a well-thought-out marine insurance policy, you can reduce your financial risks. Make sure to assess your shipping routes and cargo type before the rains begin. Planning ahead could save you a great deal.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.