Marine Insurance

Marine Insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which the property is transferred, acquired, or held between the points of origin and the final destination.

Different Types of Marine Insurance Plans : Marine Insurance Plans are of various types. Customers should opt for the one that seems feasible and meets the requirement of the nature and scope of their business.

Types of Marine Insurance are as follows...

• Cargo Insurance: As the name suggests, it insures the cargo and covers any loss or damage at the time of loading and unloading or export and import of the goods from the place of origin to the destination. 

Open or Annual Cover is one of the most common types of cargo insurance and it is a perfect fit for those who have a business that requires shipping of goods all-round the year. It covers all the cargo of certain specified value through the year and requires timely renewal after its exhaustion. As these insurance plans are active for only a specified period of time (usually 1 year), they are called Open or Annual Cargo cover.
Single Cargo Insurance (Specific Marine Policy) is another common form of cargo insurance that is generally opted by individuals or small businesses for the one-time shipments of cargo. Its coverage begins at the point of departure and ends with the cargo’s arrival at its destination and is often known as ‘warehouse to warehouse’ cover. Inland Cargo Insurance is another kind of insurance plan that provides protection to commercial goods while being transported off the shore.

• Hull Insurance mainly refers to the insurance of the torso and hull of a ship along with the associative items like equipment, machinery and furniture in the ship. The shipowner should opt for this kind of insurance in order to cover the loss incurred due to any kind of unfortunate situation. It lowers the financial risk associated with repairs, maintenance of the ship in form of compensation. 

The risks covered by such an insurance plan are mentioned below. 

Loss of the vessel as a whole.

Onboard damage to hull, machinery, and expensive equipment.

Legal charges for the damage and the labors’

Defense and attack, collision costs.

Expenses related to dry docking.

Surveying cost for assessing the damage.
Coverage: Under Inland Transit Clause

Inland Transit Clauses, in India, are formulated by the Tariff Advisory Committee. The three main categories of Inland Transit Policies are

(1) Basic Cover, provided by the Inland Transit (Rail/Road) Clause B: Physical loss of or damage to the insured goods by: Fire, Lightning, Breakage of bridges, Collision with or by the carrying vehicle, Overturning of the carrying vehicle, Derailment or accident of like nature to the carrying railway wagon or vehicle

(2) All Risks Cover, provided by the Inland Transit (Rail/Road) Clause A: All risks of loss of or damage to the insured goods.

; and

(3) Fire Risks only, provided by Inland Transit (Rail/Road) Clause C: 

Coverage: Under Institute Cargo Clause

Institute Cargo Clause C : Physical loss of or damage caused by: Fire, Lightning, Coverage under Institute Cargo Clause:

Institute Cargo Clause B covers loss or damage as per Cargo Clause C plus Washing Overboard, Sea, Lake, River, Water damage and Total Loss of package during loading/unloading

Institute Cargo Clause A covers loss or damage as per Cargo Clause B plus Rainwater damage, malicious damage, breakage, partial loss, shortage, pilferage and theft.

What is NOT covered by any of these Institute Cargo clauses is Willful misconduct of the Assured, Ordinary leakage/loss in weight, unsuitable packing, inherent vice, delay, insolvency/financial default, un-seaworthiness/unfitness of craft, vessel or container, war capture seizure and problems relating to strikes, riots and terrorism.

With the last two it is possible to cover these potential losses by taking out Institute War Clauses to cover war capture seizure and Institute Strikes Clauses for problems relating to strikes