Marine Cargo Insurance
Business involves the import and export of goods, within national borders, and across international borders. Movement of goods is fraught with the risk of mishaps, which can result in damage and/or destruction of shipments. This leads to substantial financial losses for both the importers as well as the exporters.
Marine cargo insurance covers goods, freight, cargo, and other interests against loss or damage during transit by rail, road, sea, and/or air. Shipments are protected from the time the goods leave the seller's warehouse until they reach the buyer's warehouse. Marine cargo insurance offers complete financial protection during transit of goods and compensates in the event of any loss suffered. The party is responsible for ensuring the goods are determined by the sales contract. Marine cargo insurance policy can be taken by buyers, sellers, import/export merchants, buying agents, contractors, banks, etc. This type of general insurance policy usually covers the cargo, but can also be extended to cover the interest of a third-party post transfer of ownership as determined by terms of sale.
Cargo Insurance
Cargo insurance provides coverage for unforeseen loss or damages caused to material/commodity that is transported between origin point and destination.
Types of Cargo
- Import covers transportation of material from anywhere in the world to anywhere in India.
- Export covers transportation of material from anywhere in India to anywhere in the world.
- Inland covers transportation of material from anywhere in India to anywhere in India.
Types of Policies
- Open policy covers multiple transits for the whole year and comes with a fixed sum insured, per sending limit and per location limit
- Specific Policy covers a specific single transit.
- OPEN COVER POLICY
- STOP POLICY – ANNUAL TUROVER POLICY
Types of Coverage
- ITC - A & ICC - A: Covers all damages including theft & pilferage except rainwater damage.
- ITC - B & ICC - B: Covers for accidental damages only except theft & pilferage and rainwater damage.
ITC stands for Inland Transit Clauses.
ICC stands for International Cargo Clauses.
Benefits of Cargo Insurance
- Cargo Insurance covers loss or damages caused due to fire, explosion, sinking or stranding.
- Any kind of loss or damage caused due to natural calamities such as earthquakes and lightning.
- The cargo Insurance policy covers collision, derailment or overturning of land conveyance.
- The policy provides coverage in case cargo is discharged from a port of disturbance or distress that threaten the cargo’s safety.
- If the seawater damages or washes away the loaded material on the cargo or ship, transit insurance provides cover for that as well.
- The policy provides coverage for a total loss of packages lost overboard or dropped at the time of loading or unloading.
- Cargo insurance provides coverage for the jettison that refers to intentional throwing of onboard material/commodity as well as any part of the ship in order to save the ship.