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Marine (Transit) Insurance

An insurance cover that addresses the need to make good the loss or damage, to cargo or goods, that may incur in the acquisition, holding, and transit; from the point of origin to the destination. It is the general classification, within which there are sub-classification such as Cargo Insurance, Hull, Marine Casualty, and Marine Liability, among others.

What is a good marine transit Insurance Policy

Marine or transit insurance is a type of insurance policy that covers goods or merchandise while they are in transit from one place to another. This type of insurance can be applied to various modes of transportation, including such as roads, railways, air, sea, couriers, and post.

Transit insurance typically covers risks such as theft, loss, or damage to goods during transportation. Basically, it covers loss or damage to the cargo and liabilities arising from transportation.

It can be purchased by individuals or businesses responsible for transporting goods, including manufacturers, wholesalers, and retailers.

Why does anyone need Marine Insurance

A transit insurance policy is required to protect businesses against potential loss or damage to goods during transportation.

It covers various risks, such as accidents, theft, natural disasters, and other unforeseen events that can occur while goods are in transit.

Without transit insurance, businesses could face significant financial losses and operational disruptions.

Benefits of Marine Insurance

Financial protection

Transit insurance covers loss or damage to goods during transportation.

Reduces risk

With transit insurance, businesses can mitigate the risks of transporting goods, including theft, accidents, natural disasters, and other unforeseen events.

Ensures continuity of operations

In the event of loss or damage to goods, transit insurance can help businesses quickly recover and resume operations.

Increases customer confidence

Transit insurance can increase customer confidence and trust in a business, as it demonstrates a commitment to ensuring the safe delivery of goods.

Helps with compliance

Many industries and regulatory bodies require businesses to have transit insurance as a condition of doing business.

Offers peace of mind

Finally, transit insurance provides peace to businesses, knowing they are protected against potential risks and losses during transportation.

Coverage under Marine Insurance

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Inland Transit Clause (ITC)

Provides coverage for goods transported within the country by road, rail, or inland waterways. The policy covers loss or damage to the cargo due to accidents, theft, fire, and other unforeseen events. Inland Transit Clause coverages are determined by Clause A, B & C.

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Institute Cargo Clauses A (ICC(A))

Provides coverage for goods transported by sea. The policy covers loss or damage to the cargo due to various risks, including fire, explosion, sinking, capsizing, and other perils of the sea. The policy covers loss or damage to the cargo due to various risks, including breakage, bruising, chipping, theft, pilferage, all water damage and non-delivery. It includes all coverages provided under ICC(B) & ICC (B). It is an All-Risk cover.

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Institute Cargo Clauses B (ICC(B))

Provides coverage for goods being transported by sea, similar to ICC(A), but with more limited coverage. It provides broader coverage for goods being transported within the country by inland waterways. It covers earthquake, volcano, rainwater, seawater, river water related damage and loss, besides loss due to package going overboard and during loading and unloading, among other coverages.

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Institute Cargo Clauses C (ICC(C))

Provides coverage for goods being transported by sea, similar to ICC(A), but with more limited coverage. Events leading to loss and damage, like distress, explosion, accidents of sinking, capsizing, derailment, collisions, etc., are covered.

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Marine Hull Insurance

Provides coverage for the vessel itself, including its machinery and equipment, against various risks, such as collision, grounding, fire, and other perils of the sea.

Exclusions under Marine Insurance

Here are the specific and common exclusions under transit insurance

Loss or damage due to inadequate or improper packing of the cargo.

Loss or damage due to delay, loss of market, or loss of goodwill.

Loss or damage due to wilful misconduct, fraud, or dishonesty of the insured or its employees.

Loss or damage due to ordinary leakage, wear and tear, or inherent vice of the cargo.

Loss or damage due to the cargo's confiscation, detention, or destruction by government authorities or customs officials.

Types of Marine/Transit Insurance policy based on coverage area

Coverage area refers to the geographical area in which the coverage is provided. Undermentioned are the policy types based on coverage

Hull & Machinery Policy

It covers the loss or damage caused or the loss to the body of the ship or machinery or equipment used for the functioning of the ship. It covers, accidents, earthquakes, and explosion-related damage.

Marine Cargo Policy

It covers the loss or damage to the cargo during a transit in the specified coverage area. There are certain limitations to it despite its extensive coverage, i.e., in case the loss is due to poor packaging of the cargo, it is not covered. It also provides for Third Party Liability, caused by the defection in the cargo.

Liability Insurance

It provides for the cover of the insured’s financial liability, primarily addressing Third Party Financial Liability, i.e., Death or Injury.

Freight Insurance

it covers the Shipper (Shipping Company) or the Logistics provider, for loss or damage caused to the cargo, during the transit/s, for the reasons of actions/events outside the control of the shipper or the logistics provider.

Types of Marine Transit insurance policy based on contract structure

Voyage (MST - Marine Single Transit) Policy

Covers cargo on a specific voyage or journey from one location/port to another, making it a popular option for businesses that import or export goods via sea. It is best suited for those who do not need to transport/tranship cargo very frequently.

Time Policy

Provides coverage for a specified period of time, such as one year, regardless of the number of voyages or journeys, which is ideal for businesses that frequently transport goods via sea.

Mixed Policy

Combines elements of both voyage (MST) and time policies, covering cargo for a specific voyage or a specific period of time, whichever comes first. This policy is suitable for businesses that transport goods intermittently.

Blanket Policy (Floating)

Provides coverage for all (indefinite number) shipments made by the insured during a specified period of time, typically one year. This policy is a must for companies, with a high volume of trade-related transport/transhipment. It provides coverage until the last payment is realized or until the policy is cancelled, whichever may be earlier.

Specific Policy

Covers a specific shipment or cargo for a specified value or amount, making it ideal for businesses that transport high-value goods or shipments.

Sales Turnover Policy

It is a wider kind of Open Cover Policy, issued on the basis of Sales Turnover, for both domestic and international trade.

Named Policy

This policy addresses the consignment’s risk and carrier’s risk based on the name of the carrier, i.e., the name of the ship.

Port Risk Policy

As the name of the policy suggests, it covers the risk of the ship when docked in a port.

Fleet Policy

A time-limited policy addressing a fleet of ships, being covered under one policy.

Single Vessel Policy

This covers one ship under one policy.

How to file a claim

1. Notify the Insurer

The first step is to notify the insurer of the loss or damage as soon as possible. This can be done through a written notice or by calling the insurer's customer service.

2. Submit Claim Documents

The next step is to submit the necessary claim documents, which may include the original policy document, bill of lading, invoice, survey report, and any other relevant documents.

3. Provide Evidence

Provide evidence to support the claim, such as photographs of the damaged goods, cargo handling equipment, and any other relevant evidence.

4. Appointment of Surveyor

The insurer may appoint a surveyor to assess the damage and determine the cause and extent of the loss. The insured should cooperate with the surveyor and provide access to the damaged goods.

5. Settlement of Claim

Once the insurer approves the claim, they will settle the claim amount after deducting any applicable deductibles or excesses. The settlement may be made in the form of a cash payment or replacement of the damaged goods.

How to buy Transit Insurance

1. Visit Policyleader.com

Visit the official website of Policyleader.com to purchase transit insurance.

2. Select Transit Insurance

Choose the type of transit insurance that meets your requirements from the available options.

3. Enter Details of Goods/Consignment

Provide with all the required details about the voyage, goods, and consignment.

4. Check Premium and Coverage

Check the premium and coverage details for the selected policy and add-ons.

5. Make Payment

Make payment through the available payment options on the website.

6. Receive Policy Documents

After successful payment, you will receive the policy documents through email, which can be downloaded and printed for future reference.

7. Customer Support

Policyleader.com offers customer support for any queries or assistance required during the purchase process or during the policy period.

Documents Required for Marine Insurance Claim

To ensure a seamless experience, soft copies of the following documents are required for the claims. Please note that the actual number of documents might be different as this is not an exclusive list

Original policy document.
Bill of lading.
Commercial invoice.
Packing list.
Survey report.
Delivery order.
Import/export license.
Letter of credit.
Purchase order.
Customs duty receipts.
Transport documents, such as airway bills, rail consignment notes, or truck delivery receipts.
Police FIR, if applicable.

Why should you choose PolicyLeader for Marine Insurance

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24/7 claim support

PolicyLeader offers 24/7 claim support to ensure that policyholders can receive timely assistance in case of any emergencies. Our dedicated customer support team is available round-the-clock to assist with claim-related queries and guide the policyholders through the claim settlement process.

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Customized policy options

PolicyLeader provides customized policy options to ensure that the policyholders get the best possible coverage per their specific requirements. Their experienced advisors analyze the policyholder's needs, assess their risk profile, and suggest the most appropriate policy options that offer comprehensive coverage at affordable premiums.

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Expert advice from experienced advisors

Policy Leader’s experienced advisors can provide expert advice to the policyholders, helping them choose the best policy that suits their travel requirements. They can assist with selecting the most appropriate policy options, understanding the policy features and benefits, and answering any queries related to the policy.

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Multiple insurers under one roof

PolicyLeader has tied up with multiple insurers and offers a wide range of policy options under one roof. This ensures that the policyholders can compare and choose from the best policies from leading insurers. Additionally, they have a strong presence and experienced insurance brokers in Gujarat and around the country, providing personalized and professional service to policyholders.

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Simple and hassle-free process

PolicyLeader provides a simple and hassle-free process for buying multi-trip travel insurance. The policyholders can complete the entire process online, including comparing policy options, selecting a policy, and making the payment. PolicyLeader also provides guidance and support throughout the process to ensure that the policyholder can make an informed decision and purchase the policy that best suits their needs.