Marine Insurance Info

Cargo Marine Insurance is a type of insurance that protects goods while they are being transported over water, and often includes coverage for land and air transportation as well. This insurance helps cover financial losses if the cargo is damaged, lost, or stolen during the journey. It is especially important for businesses that import or export goods internationally. There are different types of cargo marine insurance, such as open cover, voyage policy, and time policy, depending on the type and duration of the shipment. It may also cover risks like bad weather, accidents at sea, piracy, or handling damage. This insurance gives peace of mind to companies and ensures they don’t suffer big losses if something goes wrong during shipping.

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How Does Marine Cargo Insurance Work?

What it covers

It protects goods being shipped from damage or loss caused by things like storms, accidents, theft, or sinking.

When it applies

Coverage usually starts when the goods leave the warehouse and lasts until they arrive at their destination.

Who it’s for

The owner of the goods or the person responsible for them buys the insurance to protect their shipment.

Paying for insurance

The buyer pays a premium (a fee) based on the value of the goods and the risks involved.

Marine Insurance Policy According to Geographical Classification

Inland Marine Insurance

Covers goods in transit over land (e.g., by truck or train), as well as certain types of movable property and equipment.

Ocean Marine Insurance

Covers goods transported over oceans and seas, as well as ships and related liabilities.

Coastal Marine Insurance

Covers vessels operating along coasts or in smaller sea areas, such as: Fishing boats, Coastal cargo vessels, Ferries

High-Risk Areas

Some regions are considered high-risk due to political instability, piracy, or conflict.

Marine Insurance Important Claim Document Requirement

Once the claim is successfully filled the insurer will provide the URN/ claim number, which can be used for uploading documents and checking the insurance claim status.
Below is the list of documents that are required for the claim process :

Copy of Insurance Policy Documents

Claim Bill

Survey Report

Original Invoice List

Copy of Billing
Landing

Copy of Letter
Exchange

Principles of Marine Insurance

Good Faith

Both the insurer and insured must disclose all relevent information truthfully, ensuring transperency and avoiding fraud.

Proximate Cause

The insurer is liable only if the covered peril is the direct cause of the loss.

Insurable Interest

To be eligible for coverage, the policyholder must have a legal or financial stake in the cargo or vessel.

Subrogation

After settling a claim, the insurer can recover the loss amount from the third party at fault.

Contribution

If multiple policies cover the same risk, each insurer contributes proportionally to the claim.

Indemnity

Insurance Compensets only for actual loss, aiming to restore-not profit- the insured to their original financial position.

FAQ's

Why Marine Insurance Matters

Explore the significance of marine insurance across various industries, including its role in mitigating risks, ensuring cargo protection, and fostering global trade.
Understanding Marine Insurance Policies

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What is marine insurance?

Marine insurance provides protection against loss or damage to ships, cargo, and goods during transport by sea or other waterways. It helps reduce financial risk in international trade.
Types of marine insurance

The main types of marine insurance are: Hull Insurance – Covers the ship or vessel. Cargo Insurance – Covers goods in transit. Freight Insurance – Covers loss of freight revenue. Liability Insurance – Covers legal liabilities (e.g., damage to third parties).
What are the 5 principles of marine insurance?

The 5 main principles of marine insurance are: Utmost Good Faith – Both parties must be honest and disclose all relevant information. Insurable Interest – The insured must have a financial interest in the subject matter of the insurance. Indemnity – The insurer compensates only for the actual loss, not for profit. Contribution – If multiple policies cover the same risk, each insurer pays a proportionate share. Subrogation – After compensation, the insurer can claim the insured’s rights to recover the loss from a third party.
What are the objectives of marine insurance?

The main objectives of marine insurance are: To provide financial protection – Covers loss or damage to ships, cargo, and freight during transit. To minimize trade risks – Helps reduce the financial risks involved in international and domestic trade. To ensure business continuity – Helps businesses recover quickly from losses due to maritime accidents or disasters. To promote international trade – Builds confidence among traders and exporters by protecting goods in transit. To fulfill legal or contractual obligations – Some shipping contracts require marine insurance coverage.
What is CIF 10 in marine insurance?

In marine insurance, CIF 10 is not a standard or commonly recognized term. However, it might be a misunderstanding or misstatement of CIF, which stands for: CIF – Cost, Insurance, and Freight This is a trade term used in international shipping under Incoterms (International Commercial Terms). Here's what it means: The seller pays for: Cost of the goods Insurance during transit Freight to bring the goods to the destination port The buyer assumes responsibility once the goods arrive at the port of destination. If you meant CIF 10%, it might refer to a standard practice where the insurance coverage is 110% of the invoice value—this is often required to cover potential losses and additional expenses.
Is Marine Cargo Insurance Mandatory

Marine cargo insurance is not always mandatory, but it is highly recommended. Whether it is required depends on the terms of the sales contract or the laws of the countries involved. For example, under CIF (Cost, Insurance, and Freight) contracts, the seller must arrange marine insurance.
What is a Floating Policy in Marine Insurance in India

A Floating Policy in marine insurance in India is a type of insurance that covers multiple shipments or consignments over a specific period (usually one year) under a single policy.