Lalwani Insurance And Investment Consultants
INSURE & BE SECURE
Marine Insurance
Marine insurance covers maritime transport risks, including loss or damage to
cargo and ships. However, marine insurance coverage is not restricted to only
sea vessels and goods transported by waterways. It provides coverage to
goods transported by air, rail and road as well.
The Marine insurance policy in India is governed by the Marine Insurance Act
of 1963 and regulated by the Insurance Regulatory and Development
Authority of India (IRDAI).
Marine insurance can be broadly classified into Cargo insurance and Hull
insurance. Cargo insurance covers the loss or damage to goods during transit
by sea, air, or land. Hull insurance covers the physical damage to the ship or
vessel, including machinery, equipment, and other parts.
The coverage provided by marine insurance in India may include perils such
as fire, theft, piracy, collision, and weather-related risks like storms,
hurricanes, and other natural disasters. The policy may also include additional
liability coverage arising from damage to third-party property or injury to crew
members.
Types of Marine insurance policies :
Open Policy
This type of policy is suitable for businesses that frequently transport goods via sea. Under an open policy, the insured declares the estimated value of the goods to be shipped during a particular period, and the policy remains in force for that period.
The policy covers all shipments during that period, and the insured does not need to inform the insurer about each shipment. The insured can declare the value of the shipment after it is made, and the premium is calculated based on the value declared.
Specific Policy
This type of policy suits businesses with occasional shipments. Under a specific policy, the insured declares the value of the goods to be shipped for each shipment separately, and the policy remains in force only for that shipment.
The policy covers only the specific shipment declared by the insured, and the insured needs to inform the insurer about each shipment. The premium is calculated based on the value declared for each shipment.
Both types of policies cover risks such as loss or damage to the cargo, loss of freight, damage to the ship, and third-party liabilities. The policy can be extended to cover additional risks per the policy terms and conditions.