Since ancient times, sea routes have been the preferred mode for the transportation of goods for international trade. Long before aeroplanes and trains were invented, ships used to be the primary mode of transport for movement of the trade-related goods between the countries. However, the transportation of goods through this channel involved significant risks that were both – man-made as well as natural.
For example, the carrier ship may get affected due to situations like bad weather, sea waves, collision and attack by sea pirates, etc. All these perils have led to the need for Marine Insurance, which is believed to be among the very first forms of developed insurance policies. Read on to get a brief overview of Marine Insurance and its overall scope in India.
Marine insurance Marine insurance covers the loss or the damage (if incurred) of cargo or goods in transit between the points of origin and the final destination. Any person with insurable interest in the goods in transit can get their goods insured. Marine insurance covers movement of goods from one place to the other
The policy safeguards the transport and the cargo contained in them from any financial loss or damage, arising due to unforeseen perils such as bad weather, collision, sinking, robbery, fire, and natural calamities.
A Marine Insurance policy should be compulsorily purchased by ship or yacht owners who are using their vessels for commercial or transportation purposes.
Based on the policyholder's requirements and scope of coverage, four basic types of Marine Insurance plans are available in the market. Let's learn in brief about each one of them.
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Marine Cargo Insurance
Marine cargo insurance is a type of Marine Insurance that provides protection against the damages caused to the cargo during its transit. It can be due to mishandling of the cargo while loading or unloading at the respective terminals or an accident during the commute. This type of insurance is beneficial for the ships involved in heavy cargo shipments.
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Hull and machinery insurance
A hull insurance policy mainly provides coverage against any damage to the ship, including its furniture and articles. This type of insurance is primarily taken by ship owners to safeguard their costly ship against mishaps. Along with hull insurance, one can also opt for machinery insurance to cover the ship's machinery components.
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Freight insurance
The freight insurance policy provides financial security to the shipping companies against the risks of loss or damage to the freight during its shipping. It means that in case freight is lost or damaged due to an unforeseen peril during its transportation, the insurance company will pay for the financial losses.
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Liability insurance
A crash, collision, or attack on a ship may significantly damage life and property. It may incur huge liabilities for the ship owners and other stakeholders towards their employees and customers. A liability Marine Insurance policy indemnifies the ship owners of any such liabilities that may arise due to circumstances that are not under their control.
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Owing to the fact that the seas surround India on three sides, marine shipping is an important industry here. Large volumes of cargo are managed and transported daily via various ports located in different parts of the country. Hence, the marine insurance market is pretty enormous in India.
Almost all well-known insurance companies, including ICICI Lombard offer various types of Marine Insurance policies in India. Since 1963, the law of marine insurance has been put in a statutory form in our country.
As per the Insurance Information Bureau of India, the country's Marine Insurance market roughly translates to Rs. 9,500 crores. However, marine or transit insurance constitutes only 5% of India's overall insurance market.
Maharashtra, Delhi, Tamil Nadu, Gujarat, and Haryana were the top five states contributing to India's Marine Insurance market. Machinery, cotton, metal, crude oil, and liquid chemicals are the top five cargoes that the customers wanted to insure. In terms of policy count, export policies contributed to the second highest number of written policies and one-tenth of the total premium.
A major chunk of the total claims paid by the insurers was for machinery cargo, followed by mixed cargo consignments and cotton. The leading cause for these claims was cargo damages caused due to the perils of the sea.
As per the estimated figures, the Marine Insurance business recorded an overall growth of 18% in the year 2018-19. Whereas, the number of transit insurance claims paid by the insurance companies during this year also rose by 30%.
With the rapid growth of the economy and the Government taking various initiatives to promote local manufacturing and trade, the Marine Insurance market is expected to boost further in the upcoming years.
One of India's leading insurance companies, ICICI Lombard offers various types of Marine Insurance policies for its customers at reasonable rates. ICICI Lombard Marine Insurance Policy can be purchased by ship owners and other intermediaries involved in the shipping business. With a market share of 16.50%, ICICI Lombard is one of the best marine insurance providers in India.
With ICICI Lombard, you can either apply for online Marine Insurance policy or visit your nearest branch to avail it physically. ICICI Lombard Transit Insurance Policy is comprehensive and flexible to fulfil various needs of the customers. Also, the claim settlement process for our online transit insurance is very swift and hassle-free.
- Marine Transit Insurance (Inland) Policy
- Product Code: 2005
- Product UIN: IRDAN115CP0007201920