When goods are transported, there are several risks are involved, including theft, damage, or loss. That’s where marine cargo insurance and marine transit insurance come into play. If you're unsure which one suits your shipment, this blog breaks down the differences between the two and helps you understand each one.
What is inline transit insurance?
Inline transit insurance is a type of marine transit insurance that provides coverage for goods being transported from one location to another, usually within the country. It protects shipments against risks like:
- Fire
- Accidents
- Theft
- Natural calamities
This policy is generally designed for companies that frequently ship by land, sea or air. It covers cargo from the time it leaves the sender’s location until it reaches the receiver.
What is marine cargo cover?
Marine cargo insurance offers broader protection. It covers goods transported by sea, air, rail or road. It is typically used for international shipments. Marine cargo insurance coverage includes:
- Loss or damage during loading or unloading
- Natural disasters at sea
- Collision or overturning of the transport vehicle
This insurance is essential for importers, exporters and logistics firms involved in overseas trade. It is a major part of marine insurance, a broader category that also covers ships, terminals and cargo containers.
Difference between inline transit and marine cargo insurance
Here’s how inline transit insurance and marine cargo insurance compare:
o Inline transit: Limited to domestic shipments.
o Marine cargo: Suitable for both domestic and international shipments.
o Inline transit: Covers road, rail and inland air transport.
o Marine cargo: Covers sea, air, road and rail.
o Inline transit: Restricted to common transport risk.
o Marine cargo: Broader protection including loading, unloading and marine-specific risks.
o Concealed transit: Often chosen under single-transit insurance for one-time domestic shipments.
o Marine cargo: Offers annual or voyage-specific cover for international shipping.
Conclusion
Both marine cargo insurance and marine transit insurance serve important purposes depending on the nature of your goods and how they're shipped. If your focus is domestic transport, inline transit insurance could be a better option. For international or high-value goods, marine cargo insurance is the way to go. Ensure you evaluate your shipping needs and select a policy that best protects your cargo.
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.