Introduction:

Welcome to our comprehensive guide on marine cargo insurance. Whether you are a shipping company, importer, exporter, or involved in international trade, understanding marine cargo insurance is crucial to protect your goods during transit.

 

What is Marine Cargo Insurance?

Marine cargo insurance is a policy that protects goods shipped by sea, air, or land against loss, damage, or theft during transit. It provides financial compensation to the insured party (shipper, importer, or exporter) in case of unfortunate events.

If you are a cargo owner, you are at risk of mishandling the cargo at any stage, i.e., from handling at the terminal or during the voyage. This may result in loss, misplacement, or damage to the goods. Therefore, to protect your interest as the cargo owner, marine cargo insurance will cover your losses against an adequate premium payment.

 

Mode of transits covered:

The Marine Policy covers Transits by-

• Sea

• Air

• Road or rail

• Registered Post or Parcel

• Courier

• Or any combinations of the above

 

Key Benefits of Marine Cargo Insurance:

Comprehensive Coverage: Covers goods from the moment they leave the warehouse until they reach the final destination.

Risk Management: Mitigates financial risks associated with Insured trade, including damage from accidents, natural disasters, or theft.

Legal Requirements: Often required by international trade laws, Customs, Banks or contracts to protect all parties interest involved.

Customizable Policies: Tailored to specific needs, such as coverage for perishable goods, high-value items, or specific transit routes.

 

Types of Marine Cargo Insurance Policies:

Marine Insurance – Open Policy

Marine open Policy provide continuous coverage for the shipment of goods. A Marine Open policy covers all shipments within a specified period, typically a year. Insured does not need to take specific policy for all his transits, as all his shipments will be automatically covered during a year in open policy. It is a condition of Open policy that Insured must declare each of his shipment to Insured at any specific date of subsequent month.

Premium paid under the policy typically adjusted based on the value of shipment declared during the Policy period.

 

Coverage:

• Insured can opt All Risk coverage as per ICC A (Institute Cargo Clause A All Risk) for Import, export and oversea transits. For Domestic transit Insured can opt Inland Transit Clause (ITC A All Risk). Both ICC A and ITC A Risks Clauses have some general Exclusions

• If Insured want pay lesser premium for same risk, they have an option to select Basis Covers, ITC B for Domestic and ICC B for Oversea transits. Basis Cover consists of few Named Perils with some general Exclusions

• Addition covers Insured can opt are as below

  • War & SRCC (Import & Export)

  • SRCC (Inland Transit)

Exclusions:

Applicable to all policies.

• Loss or Damage caused by intentional misconduct of the Insured

• Natural loss or wastage during transit, such as minor leaks

• Deterioration due to normal wear and tear

• Loss or damage caused by the inherent nature or condition of goods

• Loss or damage resulting from improper packing

• Any Loss or damage caused by delays in transit

• Loss or Damage resulting from Unfitness of vessel or craft

• Nuclear weapons

 

Marine Insurance – Specific Policy

Marine specific policy provides coverage for a single shipment or a specific voyage. Marine specific policies are typically used when insured has irregular shipping need or high value shipments. This Policy covers goods from the point of origin to the final destination. Coverage is typically limited to duration of the Voyage, from when the goods leaves the warehouse or 

 

Coverage:

• Insured can opt All Risk coverage as per ICC A (Institute Cargo Clause A All Risk) for Import, export and oversea transits. For Domestic transit Insured can opt Inland Transit Clause (ITC A All Risk). Both ICC A and ITC A All Risks Clauses have some general Exclusions

• If Insured want pay lesser premium for same risk, they have an option to select Basis Covers, ITC B for Domestic and ICC B for Oversea transits. Basis Cover consists of few Named Perils with some General Exclusions

• Addition covers Insured can opt are as below

  • War & SRCC (Import & Export)

  • SRCC (Inland Transit)

 

Exclusions:

Applicable to all policies.

• Loss or Damage caused by intentional misconduct of the Insured

• Natural loss or wastage during transit, such as minor leaks

• Deterioration due to normal wear and tear

• Loss or damage caused by the inherent nature or condition of goods

• Loss or damage resulting from improper packing

• Any Loss or damage caused by delays in transit

• Loss or Damage resulting from Unfitness of vessel or craft

• Nuclear weapons

   

Who Needs Marine Cargo Insurance?

• Exporters and Importers: Protect shipments from origin to destination.

• Transporters: Ensure goods are protected on behalf of their clients.

• Manufacturers and Suppliers: Secure goods during international shipping.

   

Why Choose Us for Marine Cargo Insurance?

At IFFCO TOKIO GENERAL INSURANCE COMPANYLTD., we specialize in providing reliable marine cargo insurance solutions tailored to your specific needs. With our expertise and industry knowledge, we ensure your shipments are protected against unforeseen risks, giving you peace of mind and enabling smooth international trade operations