Marine Insurance broadly Represent the transit insurance, however it can be further
classified into the following types.
The Insurance covers the loss or damage of the cargo, whilst the goods are being
transported from one destination to another by rail, road, sea, air or by post.
The cargo would be covered from the time the goods leave the warehouse at the place
of dispatch until it reaches the warehouse at the final destination point.
The widest cover is available under the "ALL RISKS" terms and if required
even a basic cover such as loss by FIRE alone is available. The Policy is assignable
and is an Agreed Value Policy. There are different types of insurance policies available
depending on the voyage/transit, values. Some of these are described below:
Transits within the country (Inland Transit)
Where goods are being Imported or Exported-
- Where only one transit is required to be covered - Specific Policy can be taken.
- For regular transportation of consignments such as for businesses and Corporates
an Open Policy can be availed of by estimating the value of such consignments in
transit over this period of cover and premium paid in advance. This provides assured
cover for all the insured transits.
- Care should be taken to see that all the transits are declared to the insurance
companies as stipulated and the SI is adequate to take care of such transits. If
required the SI can be increased during the period of cover.
- A Special Declaration Policy is also available where the Total value of consignments
under transit is high and attractive discount in premium could be worked out.
- Where the goods are expected to undergo multiple transits including intermediate
storage and processing - a Multi Transit Policy is available.
Inland transit policies are commonly extended to cover perils of Strike riot and
Civil commotion (SRCC) and Export/Import Policies for the perils of War and SRCC
on payment of additional premium.
- Specific Policy or Open Policy as above can be arranged.
- In addition the Customs Duty can also be insured under a separate cover in conjunction
with the basic transit cover.
Depending on the contract of sale terms (such as FOB, CIF etc) either the buyer
or seller whose goods are to be transported can take the cover.
Even where there are no commercial transactions, but nevertheless goods are being
transported, this insurance can be taken. (eg. when personal belongings are moved
from one place to another following transfer of the Person)
We can arrange for hassle-free cover most suitable to the client's requirements.
Basically all types of ships - whether Ocean going or plying on inland waterways
(Be they steamers, fishing vessels, trawlers, launches, etc) are covered under the
Marine Hull insurance. Along with the Hull - the Machinery is also covered (H &
M). Vessels being used for pleasure and sports - such as pleasure yachts can also
come under this. Water borne properties such as Jetties, Floating dry docks, Pontoons
all come under this broad section. Apart from this, other related shipping activities
are also dealt with by the Insurers under this section. Covers for activities such
as - Ship building/Ship breaking or ship repairers and the liabilities arising through
such activities. Also Chatterers Liabilities, P & I Protection come under the Marine
The policy covers perils of the seas, rivers, lakes or other navigable water loss/damage
to the property insured caused by:
- Fire, explosion
- Stranding, sinking, etc.
- Overturning, derailment (of land conveyance)
Violent theft by persons outside the vessel
- General average sacrifice, sacrifice, salvage charges
- Breakdown of or accident to nuclear installations or reactors
- Contact with aircraft or similar objects or objects falling therefrom, land conveyance,
dock or harbour equipment or installation
- Earthquake, volcanic eruption or lightning
- Crew negligence
Ship-owners, chatterers, shipbuilders, bankers, financiers of Ships or vessels who
have Insurable Interest. Ports - (Port Authorities, Port Operators, and Private
Jetty owners) can be covered by a comprehensive Port package Policy - which encompasses
several risks such as Physical damage to the Vessels (H & M Cover) Business Interruptions,
Wreck Removal, and TP Liability. Terrorism cover can also be given. Very recently,
the business has been brought out of the purview of the Indian Tariff and hence
insurers are free to rate the risks on their own.
- Deliberate damage/destruction of the vessel by wrongful act of any person
- Use of any weapon of war employing atomic/nuclear fission and or fusion
- Radioactive Contamination, Chemical, Biochemical, Biological, Electromagnetic Weapons
- Insolvency or financial default of the vessel owner/operators/charterers
- War/civil war, Strike, Riot or Civil Commotion
- Any terrorist or person/s acting with political motive
Marine Sales Turnover Policy
Marine policies are generally either "specific-voyage" policies or "declaration"
policies for either imports, exports, indigenous transits of raw material or finished
goods, customs duty, transits from anywhere to anywhere in the world and to and
from job works. While for a specific policy, the cover is issued from beginning
to landing at the final destination, the other policies are generally continuous
policies issued on an annual basis or for a specified period of time for an agreed
value of transits based on the insured's estimate of goods movement for the specified
period. It is mandatory for all transits in the agreed period to be declared.
In this perspective, a marine turnover policy has come in as a blessing for companies.
It covers a companyâ€™s sales turnover unlike the other marine open policies which
cover the value of goods which are offered for insurance. The company's annual estimated
turnover can be covered as a single amount and all a company needs to do is to provide
sales turnover figures periodically to the insurance company (usually quarterly).
All the requirements of a company's Marine policies can be met by a single comprehensive