Gurushukla Investoworld IMF Private Limited

Marine Cargo Insurance

Marine cargo Insurance is a class of property Insurance that insures property while in transit against perils consequent or incidental to the navigation of the sea or air or rail/road/inland waterways.

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    Marine Cargo Insurance

    Marine Cargo Insurance is designed to secure losses related to goods and cargo transported on ships and other modes of water transport.
    As with any other type of Insurance, goods and products lost during a voyage can become a considerable expense for you and your business. By getting adequate Insurance coverage for your marine cargo, you can ensure that your deliverables reach their destination securely and on time.

    What is Marine Insurance?

    • Marine Insurance covers maritime transport risks, including loss or damage to cargo and ships. However, marine Insurance coverage is not restricted to only sea vessels and goods transported by waterways. It provides coverage to goods transported by air, rail and road as well.
    • The Marine Insurance policy in India is governed by the Marine Insurance Act of 1963 and regulated by the Insurance Regulatory and Development Authority of India (IRDAI).
    • Marine Insurance can be broadly classified into cargo Insurance and hull Insurance. Cargo Insurance covers the loss or damage to goods during transit by sea, air, or land. Hull Insurance covers the physical damage to the ship or vessel, including machinery, equipment, and other parts.
    • The coverage provided by marine Insurance in India may include perils such as fire, theft, piracy, collision, and weather-related risks like storms, hurricanes, and other natural disasters. The policy may also include additional liability coverage arising from damage to third-party property or injury to crew members.
    • In India, marine Insurance is primarily provided by general Insurance companies, and most offer a range of marine Insurance policies to suit the needs of different businesses and individuals. The premium for marine Insurance policies in India is usually based on factors such as the value and nature of the cargo or vessel, the type of coverage required, and the level of risk involved.
    • Marine Insurance is an essential requirement for businesses involved in transportation of goods in international as well as domestic trade. It helps to protect businesses from financial losses due to unexpected events that may occur during transit, providing them with peace of mind and financial security.

    How Does Marine Cargo Insurance Function?

    Marine cargo Insurance functions as a means of protection for the cargo owner or shipper against the risks associated with the transportation of goods by sea, air, or land. It provides coverage for physical loss or damage to the cargo during transit from the port of origin to the destination port.
    Here's how marine cargo Insurance functions:
    1.The cargo owner or shipper can purchase marine cargo Insurance from the Insurance company before shipping the cargo. The policy can be tailored to suit the specific needs of the cargo owner, considering the type of cargo, the mode of transportation, the value of the goods, and the destination.
    2.The policy typically covers loss or damage to the cargo due to various risks, including natural disasters like storms, lightning, and earthquakes, and man-made risks like theft, fire, and piracy. The policy may also cover loss due to improper handling or packaging of the cargo and errors or omissions made by the carrier.
    3.The premium for the policy is determined based on the value of the cargo, the level of risk involved, the mode of transportation, and other factors. The cargo owner or shipper pays the premium to the Insurance company.oss due to improper handling or packaging of the cargo and errors or omissions made by the carrier.
    4.In case of loss or damage to the cargo during transit, the cargo owner or shipper can file a claim with the Insurance company. The claim should be accompanied by proof of loss or damage, such as bills of lading, cargo receipts, or other documents.
    5.The Insurance company investigates the claim and determines the compensation due to the cargo owner or shipper. The settlement amount is usually based on the value of the cargo and the extent of the loss or damage. The Insurance company pays the settlement amount to the cargo owner or shipper.documents.
    Marine cargo Insurance in India provides essential protection for cargo owners and shippers against the risks associated with transporting goods by sea, air, or land. By purchasing a marine cargo Insurance policy, cargo owners and shippers can ensure they are financially protected in case of loss or damage to their cargo during transit.

    Importance of Marine Insurance

    Marine Insurance is an essential aspect of the shipping industry and international trade. Here are some key reasons why marine Insurance is important:
    • Protection against loss
    Marine cargo Insurance in India provides essential protection for cargo owners and shippers against the risks associated with transporting goods by sea, air, or land. By purchasing a marine cargo Insurance policy, cargo owners and shippers can ensure they are financially protected in case of loss or damage to their cargo during transit.
    • MLCE
    Specialised products need extra handling. Our Marine Loss Control Engineering (MLCE) can assist you in identifying potential hazards in your supply chain, develop loss prevention guidelines, and help you implement loss control and quality improvement programs.
    • Innovative Yet Simple Products
    We have something for everyone - whether you are a small exporter, importer, trader, manufacturer, SME, large corporate house, or multi-national corporation. We offer innovative yet simple products such as Sales Turnover Policy, Stock Throughput, or the standard Marine Open Policy.
    • Flexibility
    Our knowledge and expertise allow us to customise policies to suit your needs.
    • Knowledge
    We are the only company with a dedicated marine cargo underwriters team.
    • Tech Advantage
    We are the pioneers of the online issuance of marine certificates in India. Our E-marine is a unique and simple tool. Backed by a dedicated helpdesk, Emarine makes 24x7 Insurance actually possible.

    Importance of Marine Insurance

    • Automatic Insurance protection
    • Marine Loss Control Engineering
    • Assistance in identifying potential hazards
    • Cargo protection for specific voyage risks
    • Multinational Cargo Transport Program
    • Marine Cargo Underwriting Service

    What is Covered in Marine Insurance?

    • Accumulation Clause
    • Attachment & Termination of Risk Clause
    • Brands Clause
    • Cancellation Clause
    • Claused Bill of Lading Clause
    • Debris Removal Clause
    • Deliberate Damage - Pollution Hazard
    • Exhibition/Demonstration Risks Extension
    • Fumigation Clause
    • Goods Purchased by the Assured upon "C.I. F." terms
    • Increased Value upon Arrival Clause
    • Labels Clause
    • No Survey Clause
    • Own Sheets & Ropes Clause
    • Packing Clause
    • Pair & Sets Clause
    • Repacking Clause
    • Seals Intact Clause (operative in respect of F.C.L. consignments only)
    • Shortage from Containers, Trailers, and/or Vehicles Clause
    • Testing & Sorting Clause
    • Airfreight Replacement Charges Clause
    • Average Clause (applicable to static risks only)
    • Buyers Interest Clause
    • Civil Authority Clause
    • Concealed Damage Clause
    • Declaration Clause
    • Duty Clause
    • Exhibition Abandonment Extension Clause
    • General Average
    • Goods Purchased by the Assured upon "F.O.B." or "C.&F." terms or similar terms
    • Insolvency Of Shipowners
    • Letter of Credit Clause
    • On-Deck Shipments
    • Own Vehicle Debris Removal Clause
    • Packers Premises Extension
    • Pollution & Contamination Exclusion Clauses
    • Rejected or Returned Shipments Clause
    • Sellers' Interest
    • Trade Marked Cartons
    • Theft Co-Insurance Clause

    What is Not Covered in Marine Insurance?

    These are some of the exclusions under the policy:
    • Rust, oxidation, and/or discolouration of unpacked, unprotected, and uncrated goods, regardless of the cause.
    • Electrical and/or electronic and/or mechanical derangement and/or breakdown unless caused by a peril covered by the policy.
    • Unexpected disappearance and/or stock-taking losses of any kind.
    • Unexpected disappearance and/or stock-taking losses of any kind from exhibition stands or locations if the exhibition stands are occupied during published opening hours.
    • Theft or attempted theft from the policyholder's own vessels or premises unless it involves forcible and/or violent entry. Theft from all storage locations is excluded unless there is forcible and/or violent entry and/or exit.
    • Theft attributed to collusion by employees.
    • Losses or damages to the cargo due to climate or atmospheric conditions or changes in temperature cannot be covered.
    • Damages caused to the goods due to changes in the water table level cannot be covered under the policy.
    Under the Exhibition/Demonstration Risks Extension clause, the exclusions are:
    • This Insurance policy does not cover any loss or damage caused by hidden defects or poor assembly or construction of the insured property
    • It also does not cover any loss or damage caused during the use of the property for demonstration or other purposes.
    • Theft or pilferage from an unattended exhibition/demonstration stand/trailer is covered, except in cases of forcible and/or violent entry and/or exit.
    • This policy does not cover goods that are hired out by the insured for exhibition/demonstration unless agreed upon with the underwriters before the risk coverage begins.

    Types of Marine Insurance Policies

    These are the following types of marine Insurance policies:
    • Import Insurance
    Covers loss or damage to goods transported from another country to the policyholder's country. The policy provides coverage against risks such as damage during transit, theft, and non-delivery.
    • Inland Marine Insurance
    This type of Insurance protects the property in transit within a country. It covers goods transported by land, air, or inland waterways. This type of Insurance covers loss or damage to goods caused by accidents, theft, or natural disasters.
    • Hull Insurance
    This Insurance policy covers the vessel itself, including its machinery, equipment, and fittings. It protects the owner against loss or damage to the vessel caused by accidents, collisions, fires, or other risks.
    • Export Insurance
    Covers loss or damage to goods transported from the policyholder's country to another country. The policy provides coverage against risks such as damage during transit, theft, and non-delivery.
    • Marine Cargo Insurance
    Marine cargo Insurance covers loss or damage to goods being transported by sea. It protects cargo owners against damage during loading and unloading, theft, piracy, and natural disasters.
    • Freight Insurance
    This policy provides coverage for the freight charges paid by the policyholder in case of loss or damage to the cargo transported. It covers the freight charges lost due to the failure to deliver the cargo or the cargo being damaged during transit. Shippers, carriers, and freight forwarders typically purchase this type of Insurance.

    Type of Plans Under Marine Insurance Policy

    Marine Insurance policies can be categorised into two types of plans – open policy and specific policy.
    • Open Policy
    This type of policy is suitable for businesses that frequently transport goods via sea. Under an open policy, the insured declares the estimated value of the goods to be shipped during a particular period, and the policy remains in force for that period.
    The policy covers all shipments during that period, and the insured does not need to inform the insurer about each shipment. The insured can declare the value of the shipment after it is made, and the premium is calculated based on the value declared.
    • Specific Policy
    This type of policy suits businesses with occasional shipments. Under a specific policy, the insured declares the value of the goods to be shipped for each shipment separately, and the policy remains in force only for that shipment.
    Both types of policies cover risks such as loss or damage to the cargo, loss of freight, damage to the ship, and third-party liabilities. The policy can be extended to cover additional risks per the policy terms and conditions.

    Types of Coverage Under Marine Insurance

    Inland Transit Clauses (ITC)

    Inland Transit Clauses (ITC) provide coverage for goods or cargo that are being transported within the country, usually by road or rail. Two types of Inland Transit Clauses are ITC A and ITC B.
    • ITC A:
    This clause provides comprehensive coverage for goods transported within the country. It covers all risks of loss or damage to the goods except those expressly excluded in the policy.
    • ITC B:
    The coverage under this clause is more limited than ITC A. It covers loss or damage to the goods only if caused by fire, collision, derailment, overturning, or any other accidental external means.

    International Cargo Clauses (ICC)

    International Cargo Clauses (ICC) cover goods or cargo transported overseas, usually by sea or air. There are two types of International Cargo Clauses - ICC A and ICC B.
    • ICC A :
    This clause provides the most extensive coverage for goods transported overseas. It covers all risks of loss or damage to the goods except those specifically excluded in the policy.
    • ICC B:
    This clause provides limited coverage when compared to ICC A. It only secures the loss or damage to the goods if caused by fire, explosion, sinking, stranding, or any other accidental external means.
    Here are the inclusions you can find for the plans we provide.

    Exclusions Under Burglary Insurance in India

    What is Burglary Insurance?

    Burglary Insurance is another type of property Insurance that protects your business from loss or damage to assets like furniture and fixtures, machinery, equipment, etc., due to a burglary/theft.
    • Here, Burglary means unforeseen and unauthorised entry into the premises by forcible, violent and visible means with the intent to steal contents or property.
    • Whereas, Theft implies taking movable property dishonestly without your consent with the intention of permanently depriving you of the property. Theft is an additional cover that can be opted for under this bundle.
    Remember, Theft and Burglary DO NOT mean the same thing under this policy.
    Generally, this cover comes bundled with a fire Insurance plan. It is often included as an add-on cover.
    In short, burglary Insurance offers additional security to your insured property by providing more coverage. This applies to independent houses, shops, or office spaces owned by you.

    Tips to File Fire and Burglary Insurance Claim

    • Inform the insurer

    If an unforeseen and unfortunate mishap occurs, the first thing you should do is inform us to file a claim. 

    • Provide the necessary details
    Provide us with a detailed account of the damaged property and their estimated equivalent costs. Take sufficient pictures and videos of the damage wherever possible.
    • Property Survey
    We will send a surveyor ASAP to your property to assess the extent of the damage. Provide them with any kind of assistance or additional information they require to speed up the claim filing process.

    Eligibility Criteria to buy Fire and Burglary Insurance Policy

    The following categories of people or organisations can buy fire and burglary Insurance:
    • Any individual, organisation, institution, or firm that needs to protect their business financially from the damages and losses due to fire and burglary.
    • Any person who owns a building, furniture, household articles, etc.
    • Retail store owners or godown keepers.
    • Owners of banks, or financial, education, or research institutes, etc.
    • Owners of medical clinics, restaurant and hotel owners, service suppliers, lodging, medical stores, etc.
    • Owners of banks, or financial, education, or research institutes, etc.
    • Owners of manufacturing and industrial firms and transporters.

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