Marine Transit Insurance (inland)

Marine Cargo insurance / Transit Insurance covers the loss or damage of cargo / goods in ordinary course of transit between the points of origin and the final destination. Marine insurance covers Movement of goods from one place to another:

• Institute Cargo Clause – A (All Risk)
• Institute Cargo Clause – B (Named Perils/ Basic Cover)
• From Country outside India to India(Import)

Any person with insurable interest in the goods in transit can insure. Further the policy can be assigned freely to any person who acquires insurable interest during transit of the cargo

• Exporters
• Importers
• Manufacturers
• Traders
• Merchant Exporters
• Contractors of Projects
• Logistics Operators
• C&F Agents

The types of cargo / Commodities* are:

• General Cargo: Ex. Furniture, Spare Parts, footwear, Electronic items, food items, textiles etc.
• Metals: Plastic, Iron and Steel Rolls, Leather
• Machinery: Ex. Standard size in Containers. Oversize in Bulk or Open Top containers
• Liquid Bulk Cargo: Ex. Crude Oil, Edible Oil, etc.
• Dry Bulk Cargo : Ex. Coal, grain, ore and other similar products in loose form
• *Above commodities / Cargo can be covered depending on the risk involved in it.

Per Sending limit represents the maximum sum insured amount that in the event of a claim of any one consignment or shipment whilst the goods are in ordinary course of transit.

• Cost of the goods either on (CIF)/FOB/C & F (Depending on the INCO term)
• Clearing charges and internal freight
• Customs Duty

Perils of the seas” means fortuitous accidents or casualties of the seas, but does not include ordinary action of the wind and waves.

Partial Loss (Particular Average) : Particular Average means partial loss of the subject matter insured although not appearing in the Clauses directly, all three sets of ICC covers particular average in full. Total Loss : The goods are completely destroyed. The assured is irretrievably deprived of the goods. The goods are no longer the thing insured (loss of specie). The goods are on a ship that has been posted as missing. Total loss can be an Actual Total Loss or Constructive Total Loss. General Average (GA) : This occurs when the insured goods are partly or totally sacrificed in a general Average act. Provided the GA does not arise from any of the exclusions expressed in the Clauses, the underwriter is liable for the sum insured if the sacrifice results in a total loss of the goods or the proportion of the sum insured produced by applying the percentage of depreciation caused by the sacrifice to the SI, if only part of the goods is sacrificed.

GA is a sacrifice or expenditure made or incurred by one of the parties to the maritime adventure for the purpose of saving all of the property insured in such maritime adventure”. All loss which arises in consequence of extraordinary sacrifice made or expenses incurred for the preservation of the ship and cargo comes within general average and must be borne proportionately by all who are interested

• Invoice copy
• LR copy
• Final Repair Bill
• Photographs (In case of damage claim)
• Repair Estimate (If repairable) claim and original AD
• Shortage Certificate (In case of shortage)
• FIR copy
• Driving License, RC Book of transporters Vehicle
• Salvage Bill
• Discharge voucher

Yes, you can do so. However, in such cases, you need to pay a high premium.

• Notify the insurer immediately and share the required documents. Find out about the various channels through which you can notify about the claim.
• A surveyor appointed by the insurer will examine the documents, verify the claim's authenticity as per the marine transit insurance policy's terms and conditions and submit the report to the insurer.
• Following the assessment, the insurer will process your claim.

Ideally, you should file a claim immediately. That said, the deadline varies across insurance companies and can range from a month to a year.

Yes, you can track the claim's progress on WhatsApp or other channels such as email.

Your claim must fulfil the marine transit insurance policy's terms and conditions to be valid. If it doesn't, the insurer can reject it.

Yes, you can still file a claim if your cargo is partially damaged.

Receiving compensation post-claim approval can take between 10 to 30 days

Goods that are hazardous in nature or perishable can be excluded from coverage under marine insurance.

Goods that may endanger the safety of vehicles or persons on board are excluded from coverage during transit.

Yes, losses arising due to improper packaging are excluded from coverage

• Covers single consignment from one location/port to another location/port.
• It is suitable for those firms who seldom require marine cargo policies in the course of their trade. Marine Open Declaration Policy: (MOP)
• MOP is an annual arrangement between the insured and the insurer to provide coverage to all the shipments/transits on pre-arranged terms and conditions for a particular leg (Domestic/Import/Export).
• Open inland policy is a declaration based policy where insured has to make periodic declaration (Monthly) of sum insured utilization.
• Certificates are issued for individual transits and are treated as sum insured utilization for open import/export policy.
• Insurer’s maximum liability is restricted to a pre agreed limit per sending and limit per location.
• Insurer’s maximum liability Policy period of one year at an initial Sum Insured which can be enhanced during the duration of the policy.

Sales Turnover Policy:

• It’s a wider form of Marine Open Policy and is issued on the basis of annual sales turnover – both domestic and exports, all transits/voyages deemed to be held covered without specific declaration. (Import, Export or Inland)
• Sum Insured and premium is based on the estimated annual Sales Turnover of goods movement under various legs of transit.
• Certificates are issued for individual transits.

• Basic Client Information
• Type of Cover (All risk (A) or basic coverage (B))
• Policy Duration
• Nature of Commodity and its description
• Custom Duty (In case of Import)
• Packing Description
• Mode of Conveyance (Sea, Air, Rail, Road or Courier)
• Claim Experience
• Basis of Valuation
• Per Sending and Per Location Limit

• Type of goods: High-value or fragile items may require exhaustive coverage.
• Mode of transportation: Different modes of transport pose varying risks, which may affect the type and extent of coverage needed.
• Insurance limits: Know the limits of coverage provided by marine insurance, including maximum liability amounts and any exclusions that may apply.
• Premium costs: Compare premium rates from different insurers to ensure you are getting competitive pricing. However, don't solely base your decision on price — consider the value and scope of coverage offered.

Premium rates vary depending on the type of goods or commodity to transport. High-value goods have higher rates. It can also depend on the mode of transportation, transport to and from location and the sum insured.

A marine transit insurance policy offers a financial cushion if your cargo suffers any damages during transit. The monetary compensation allows you to recover your losses.

You can get a quote online. Most insurers have this facility whereby you enter the details, including the type of cargo, sum insured needed, etc., and will receive the quote based on your inputs.