Marine Cargo Insurance: Coverage, Claim & Exclusions

Updated: 22-09-2022 11:10:08 AM

Marine cargo insurance is a type of commercial insurance that provides coverage to goods in transit. Cargo means the goods in transit and marine cargo insurance provides coverage for the same. The cargo can be sent via air, water, road or rail.

What is Marine Cargo Insurance?

Marine cargo insurance is the policy which provides insurance cover to the goods being carried for trade by the mode of water, air, rail or road. Marine is directly related to sea ways, but the insurance providers in India extend this coverage to all the other modes of transport too, making it a comprehensive policy. Thus, the policy provides financial protection for the losses incurred during transportation of goods.

What all Marine Cargo Insurance Covers?

This type of insurance policy is designed to provide coverage to the goods being carried by ships, trains, trucks, etc. Loss or damage to the goods in transit due to following reasons is covered under the policy:

• Fire, explosion
• Vessel getting sunk
• Overturning or derailment of land transport
• Damage to the goods due to collision
• Earthquake or volcanic eruption
• Water ingression causing damage to the goods

Note: This is an indicative list. The points might vary for different providers.

Claim Process for Marine Cargo Insurance 

In the case of an unwanted event causing damage to the goods, follow the steps mentioned below in order to file a claim and obtain the claim amount:

• Inform the insurance company about the event as soon as you can
• In case of theft or loss of cargo, make sure to file an FIR and obtain copy of the same
• A surveyor will be appointed to visit you and the location of loss/damage
• Submit the documents to the surveyor along with the claim form
• Once the documents reach the claim department of the insurance company, the department initiates the verification process
• On successful verification, you will receive the claim amount within a span of 30 days

Documents Required for Claim Process

Submit all or some of the following documents to the insurance provider at the time of filing a claim:

• Claim Form (duly filled & signed)
• Original Policy Document
• Details of the goods damaged/lost
• FIR report (in case of theft)
• Consignment details
• Any other details asked by the provider

Exclusions under Marine Cargo Insurance

The insurance policy does not provide coverage for certain cases. These are exclusions. Let us look at some of them:

• Loss or damage to the cargo due to delay
• Damage due to negligence of the crew or labour
• Damage due to improper packing
• Loss due to insolvency of the cargo company

Note: This is not an exhaustive list.

Advantages of Marine Cargo Insurance

Some of the multiple merits of enrolling in marine cargo insurance are:

• Worry-free trading of cargo, thus enabling better trade
• The insurance companies also help in narrowing down the best transports as this shrinks their liability too, making it a win-win case for both the parties
• One can opt for cargo specific covers and enjoy better coverage at optimum premium

FAQs

Q1. How is marine cargo insurance different from marine hull insurance?

A marine hull insurance covers damage or loss of the body of the vessel. On the other hand, marine cargo insurance provides financial coverage when the goods being carried in the vessel are lost or get damaged.

Q2. Do I need a separate life insurance for myself or does the marine insurance cover the owner of the vessel?

No. Marine insurance is meant to cover the body of the vessel or the goods being carried, not the people on-board.

Q3. If the goods are damaged while loading or unloading, will the insurance company pay for the losses?

Some companies may have this covered in the base policy while for others like HDFC ERGO, this is an additional coverage.

Q4. What is marine cargo open policy?

It is a type of marine cargo insurance in which all the goods being transferred are covered during the policy period, no matter how many times the vessel do rounds for transfers.