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Marine Transit Cargo Insurance Policy Coverage

Marine/ transit insurance

Marine insurance is the oldest coverage type, providing essential protection for cargo during transit by rail, road, sea, or air. As a key part of corporate risk management services, it covers loss or damage to goods. Whether you need goods carrying vehicle insurance or international cargo protection, transit clauses define your coverage. You can choose any policy form based on your business requirements.

Type of Policies

  • Marine Specific insurance. This is a single transit insurance cover provided from one place to another for a specific cargo to be protected while in transit via road/rail/ Sea/Air/courier etc. The transportation of goods could be within the country or it could be between two countries i.e., import or export.

  • Marine Open policy. It is an annual policy for an estimated sum insured based on proposed despatches for a period of one year. It will include either incoming or outgoing despatches or both as per the terms fixed between insured and insurance company. Premium is paid in advance and insured has to declare the despatches made on monthly basis in a standard format. The policy is adjusted at the end of the year against the actual sum insured under the policy. During the policy period, if necessary, insured can increase the sum insured by paying additional premium. Similarly, any balance of sum insured at the end of the policy, premium will be refunded by insurance company. All despatches will be automatically covered under the policy subject to availability of sum insured under the policy which needs to be monitored as per declarations submitted for previous months. All the policy terms are agreed before the inception of the policy.

  • Marine Open Cover. This Policy is issued to cover import and export consignments. Marine open cover is a contract for 12 months (unstamped policy) which gives insured continuous protection throughout the year. The terms and conditions are fixed and advance cash deposit is made to the insurance company at the beginning of the cover. Insured has to declare each consignment prior to the despatch and get the insurance certificate issued, failing which the consignment remains uninsured. Deposit premium will be adjusted against each certificate and any balance left will be refunded after the end of the policy.

  • Sales Turnover / Annual turnover policy. Sales Turnover Policy is a highly evolved insurance cover and popularly known as STOP cover. It covers domestic purchase of RM and consumables, Imports, Inter-factory/warehouse/depot transfers, To & Fro Job work movements, domestic sales, exports etc. Policy is taken on projected annual turnover and premium is paid on the turnover only. Insured needs to declare the turnover at periodic intervals (mostly quarterly basis) to the insurance company. In case sum insured is not utilized totally, client can seek refund of balance premium. During the year, if necessary, sum insured can be enhanced by paying additional premium. As the STOP policy covers multiple legs of transit under one umbrella policy, it leads sizable premium savings as premium is paid only on sales. All incoming consignment are covered without paying any premium. This cover also leads to easy policy management and flexibility in submitting declaration.

  • Marine Duty insurance policy. This is an increased value of cargo because of payment of custom duty. This policy is not an agreed value policy and claim are payable based on actual duty paid or on the basis of sum insured whichever is less. This covers custom duty paid on the cargo damaged but not refundable by custom department. The claim under this policy is payable only if claim under cargo policy is admissible. This policy is granted together with Marine Policy.

Coverage:

The terms and conditions offered by the insurance companies are subject to International commercial terms popularly known as INCO terms (FOB, CIF, CFR, DAP, Ex- work etc) as per the PO/ Invoice. The coverage will be as per the following cargo clauses.

  • Inland cover is granted for Rail/road risk as per Inland transit clause A (All risk) or B (restricted cover) along with cover for Strike, Riot and civil commission (SRCC).

  • For transit by Sea, cover will be as per Institute cargo clause (ICC–A) for all risk cover or as per ICC-B or ICC-C (both are restricted covers). In addition to this, covers for War & SRCC can be also included.

  • For Air cargo the coverage is as per Institute Cargo clause (Air). Institute war clause( Air cargo) and Institute Strike clause ( Air cargo)

  • There can be a single cover having inland rail/road transit followed by Sea/ Air cargo movement or inland water voyage.