Marine Cargo Insurance

Marine Cargo Insurance provides comprehensive coverage for goods during international or domestic shipments. It protects cargo from the moment it leaves the seller’s warehouse until it reaches the buyer’s warehouse. There are three main types of transit covered by this insurance:

  1. Marine Import Transit Insurance Policy for Import Cargo
  2. Marine Export Transit Insurance Policy for Export Cargo
  3. Marine Inland Transit Insurance Policy for Inland Cargo

Key Benefits

  • Ensures financial stability for businesses.
  • Helps manage risks and allows businesses to operate with less worry.
  • Compensates for financial losses occurring during the transit of goods.

Coverage

This insurance covers goods (merchandise) shipped by rail or road within India (excluding overseas voyages) under the Inland Transit (Rail/Road) Clause A, B, and C. The coverage is as follows:

  1. Inland Transit (Rail or Road) Clause A (All Risks): Covers all risks of physical loss or damage, subject to exclusions.
  2. Inland Transit (Rail or Road) Clause B (Basic Cover): Covers physical loss or damage caused by:
    • Fire, lightning, breakage of bridges
    • Collision with or by the carrying vehicle, derailment, or similar accidents
  3. Inland Transit (Rail or Road) Clause C: Covers physical loss or damage caused by:
    • Fire
    • Lightning

Exclusions

Willful misconductOrdinary leakage, loss in weight or volume, and wear and tearImproper packingInherent vice (natural defects)DelayInsolvency or financial default of carriersWar, strike, riot, and civil commotion unless added as coverage

Claim Process

In the event of a loss, the following actions must be taken:

  1. Inform the insurer immediately about the loss, providing a full written statement, the nature and extent of the damage, and an estimate of the loss. Any delay in reporting may jeopardize the claim.
  2. Take all necessary steps to minimize the extent of the loss or damage.
  3. Determine the cause and extent of the loss to see if it falls within the policy’s coverage.
  4. Fully cooperate with the insurer and the appointed surveyor for the survey and proper assessment of the loss.
  5. Provide all necessary documents, such as the claim form, policy copy, incident report, certificate of origin (COF), and the monetary claim, sent by speed post.
  6. Retain the damaged property under safe custody until advised by the surveyor or insurer regarding its disposal.
  7. Identify and document the insured items.