Marine Insurance

Marine Insurance is a contract that provides financial protection against loss or damage to ships, cargo, and related property during transit by sea, air, or land. It safeguards exporters, importers, and vessel owners from risks like accidents, natural calamities, piracy, and theft, ensuring secure and smooth global trade.

What is marine transit insurance?

Marine transit insurance, often called marine cargo insurance, safeguards your goods against financial losses if they are damaged due to natural or man-made causes while in transit. It provides protection for shipments moving from the point of origin to the final destination, whether transported by road, rail, air, or sea.

This type of insurance compensates for losses your cargo may face during transit from risks such as fire, explosion, hijacking, accidents, collisions, overturning, theft, or adverse weather conditions. The coverage can be customized to suit your business needs

Marine Insurance

How does marine transit insurance work?

Here’s the working of a marine insurance policy

The functioning of a marine transit insurance policy is straightforward. Once you purchase the policy, the responsibility for covering potential damages shifts to the insurance company. If a loss occurs, you notify the insurer, who then assigns a surveyor to evaluate the extent of the damage. After the surveyor’s report, the insurer provides compensation accordingly.

Therefore, marine transit insurance ensures peace of mind by offering a financial safeguard in case your cargo sustains any damage.

Types of Marine Transit Insurance

Marine transit insurance can be classified into the following categories:

  • Inland Transit Insurance: Covers goods transported within India.
  • Import Transit Insurance: Covers goods being shipped from a foreign country to India.
  • Export Transit Insurance:Covers goods being shipped from India to an overseas destination.

Why do you need marine transit insurance?

Protecting Your Cargo from Transit Risks

Goods in transit often represent significant value, and any damage can lead to serious financial setbacks for your business. Even with careful handling, cargo remains exposed to a variety of risks, including:

  • Damage from fire, explosions, lightning, earthquakes, or volcanic eruptions
  • Theft or hijacking of cargo
  • Vehicle collisions during transit
  • Overturning or derailment of the transporting vehicle
  • Loss or damage while loading or unloading goods
To facilitate trade

Many national and international trade agreements require marine transit insurance. Maintaining adequate coverage reflects your financial reliability, which can help you secure business opportunities, build stronger partnerships, and make trade financing more accessible.

For business continuity

When cargo is lost or damaged, recovering financially can take time. Marine transit insurance helps your business recover more quickly by reducing downtime and compensating for the losses.