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How Does Marine Insurance Work

Posted on 31 May 2021

Marine policy provides financial coverage against the damage or the loss incurred to the cargo or the goods in transit via truck/vehicle/ ship/vessel/courier etc. A Marine Insurance policy safeguards against various risks faced the by cargo, ship owners, terminal handlers, and other intermediaries in the logistics and the transportation business.
This insurance is a necessity for anyone with insurable interest in the goods in transit to insure their goods against several perils during the transit.
Let’s see how Marine Insurance works and its various other aspects.

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  • Working of Marine Cargo Insurance

    The working mechanism of a Marine Insurance policy is simple. When you buy this insurance, you transfer the liability for potential damages to the insurance provider. In case of any loss suffered, you need to intimate the insurance provider, who will appoint a surveyor to analyse the admissibility and quantum of the loss. Thus, a marine cargo insurance policy gives you peace of mind, as you know you have a financial net to fall back on if your cargo suffers any damage during the course of transit.

The Marine Insurance policy covers the following:

    • Covers damages/non delivery of cargo on account of accident, crash, piracy attacks or collisions
    • Provides coverage against cargo damage due to misplacement, fire, explosion, sinking or stranding
    • Offers compensation for expenses incurred because of overturning, collision or derailment
    • Covers for total loss of package during loading or unloading on account of mishandling
  • What is not covered in the Marine Insurance Policy?

    Just like any other insurance policy, there are certain exclusions under Marine Insurance too. Compensation is not provided in case of:

    • Intentional loss or damage
    • Inappropriate packaging
    • Damage suffered due to insolvency

    Note that the clauses may vary across insurers, and therefore it’s important to read the fine print before buying the policy to know the exclusions.

Finding the Best Marine Cargo Insurance policy

Now that you know what exactly marine cargo insurance is, it’s working mechanism, inclusions, exclusions , it’s time to zero in on the best Marine Insurance policies. Note that the exercise is no different from finding a regular insurance policies. Compare different policies, read the inclusions and exclusions and choose the one that best fits your requirement.

In Conclusion

Marine insurance is immensely valuable to any person who acquires insurable interest during transit of the cargo. Buying it provides financial stability and allows conducting business without worries.

  • Marine Transit Insurance (Inland) Policy
  • Product Code: 2005
  • Product UIN: IRDAN115CP0007201920

This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Marine Single Transit Insurance, 2005, IRDAN115CP0007201920)