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Marine Cargo Insurance:Buy Marine Cargo Insurance Policy Online | Reliance General Insurance

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Marine Cargo Insurance Policy

Benefits

Reliance Marine Cargo Insurance Policy

​​Marine Cargo Business is not constrained by borders, and goods are shipped around the world. The transit from its “Origin”  to  “Destination”, is exposed to various risks. The domestic movement or importing and exporting of goods can expose you (Seller/Consignor) or (Buyer/Consignee) to massive financial losses in case shipments gets damage in transit or lost. It is crucial to protect these goods from the various possible mishaps, enabling you to run you trade/business smoothly.​

Special feature tailor-made for you:

 


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​​Different typ​​es of shipments covered in cargo insurance:-​​

​​Dom​e​stic Shipment​​​Import ​​​Exp​ort
​Transportation of cargo between two places or states within the country​​​Importation of goods through Land, Sea or Air and payment done via foreign currency only

​Exportation of any goods from India by Land, Sea or Air and payment received via foreign currency only Coverages provided under these policies ranges from a restricted form of cover, e.g. Fire and Lightning perils only, to the widest available form of cover, namely, All Risks, at the option​ of the insured, depends on the type of cover plan you opt for yourself.​

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Types of marine cargo insurance policies are:​​

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Specific Policy: Covers the single specific shipment only during the policy period.

Open Policy: The agreement between a proposer and an insurer to insure all goods in transit falling within that agreement for a period of time or even indefinitely until the agreement is cancelled by either party. Full premium is collected in advance and adjusted on annual declared value of annual shipments.

Open Cover: is an agreement between the Proposer and the Insurer, the Proposer agrees to buy cargo insurance for all their cargoes whenever they have an obligation to insure and the insurer agrees to provide cargo protection for the Proposer. Premium is charged as declarations of shipments are made.​

What peril does the policy cover?

Based on the type of cover selected, it covers “All Risk” to “Fire only” risk or named perils:-

​Risk​​​​​​​​​​​Institute Cargo Clauses ​ ​
​Loss ​or Damage arising out of following
(​​Proximate Cause)

​A​​
(All Risk Cover)​

​B
(Wider Cover)​​

​C
(Basic Cover)​

​Fire or Explosion​✔​​✔​✔​​
​Theft/ Pilferage​✔​✘​✘
​Malicious Damage​✔​✘
(Can be bought ​back)​		​✘
(Can be bought ​back)​​
​Washing Overboard (deck cargo)​✔​✔​✘
​Jettison​✔​✔​✔​
​Loss overboard during Loading/Discharge (TLO only)​✔​✔​✘​
​Earthquake, Volcanic Eruption or Lightning​✔​✔​✘​
​Seawater entering Ship, Craft, Hold,
Conveyance Container Lift Van or Place of Storage		​✔​✔​✘​​
​Discharge of Cargo at  Port of Distress​✔​✔​​✔
​Overturning or Derailment of Land Conveyance​✔​✔​✔
​General Average Sacrifice​✔​✔​✔
​Stranding , Grounding, Sinking or Capsizing​✔​✔​✔
​Collision of Ship or Craft with another Ship or Craft​✔​✔​✔
​Contact of Ship, Craft or Conveyance with anything other than Ship or Craft (excludes Water but not Ice)​✔​✔​✔​
​War Risks / SRCC ✘
(Can be bought ​back)​​		​✘
(Can be bought ​back)​		 ✘
​​(Can be bought ​back)​​​

​Disclaimer: For more details on risk factors, terms conditions, brochure, and exclusions, please read the policy wording and CIS carefully before concluding a sale.

FAQ

Benefits

What is Marine Cargo Insurance / Transit Insurance?

Transit insurance covers goods and/or merchandise while in ordinary course of transit from one location to another location.​

Who can buy Marine Cargo Insurance?

​The Marine Cargo Insurance policy can be taken by Sellers, Buyers, Import/Export merchants, Contractors, Banks or anyone engaged in the import and export of goods or transportation of it within the country or who has a insurable interest in it.​

What are the types of shipments?

​​The types of shipments includes the following:

  • Domestic Shipment : means transportation of cargo between two places or states within the country
  • Import : means bringing into India any goods by Land, Sea or Air and where the payment is made in foreign currency only
  • Export : means taking out of India any goods by Land, Sea or Air and where the amount is received in foreign currency only
  • Deemed Export : refer to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in free  foreign exchange
  • Third Country Shipment : means transportation of cargo between two countries without passing through India and the amount is received in foreign currency only​

What are the type of Marine Cargo Insurance cover available?

Following types of cover are available:

  • Inland Transit Clause – A
  • Inland Transit Clause – B​

What does Perils of the Sea mean?

​"Perils of the seas"​ means fortuitous accidents or casualties of the seas but does not include ordinary action of the wind and waves.​

What are INCOTERMS?


Incoterms are a collective of international commercial terms published by the International Chamber of Commerce. These terms are widely used in international commercial transactions, to distinguish the rights, risks and obligations of both parties (Seller/Consignor and Buyer/Consignee) concerning the transportation of goods.

There are a number of Incoterms which apply to all types of transportation and some terms are specified for one type of transportation.​

Rules for Any Mode (or modes) of Transport​

  • CIP - Carriage and Insurance Paid
  • CPT - Carriage Paid To
  • DAP - Delivered At Place
  • DAT - Delivered At Terminal
  • DDP - Delivered Duty Paid
  • EXW - Ex Works
  • FCA - Free Carrier

Rules for Sea and Inland Waterway Transport Only

  • CFR - Cost and Freight
  • CIF - Cost, Insurance and Freight
  • FAS - Free Alongside Ship
  • FOB - Free On Board

Note: New Incoterms 2020 has been published recently​.

What information the Insurer need to provide quotation?

  • Name and address of the Proposer and his business
  • Description of goods, number and nature of packages
  • Value of Goods
  • Voyage details (From/To)
  • Mode of Conveyance (Rail/Road/Air)
  • Basis of Valuation
  • Packing of the cargo
  • Type of Cover eg ITC A, B.

What is Sum Insured?

Sum insured is the total value of the goods including freight, taxes and any other port handling charges. This is the maximum amount which is payable in the event of a total loss of the insured cargo. The sum insured will comprise of the following:-

  • ​Cost of the goods & Freight

What are the documents required to lodge a claim?

Following documents are required to lodge the claim:

  • ​Policy And/Or Certificate of Insurance
  • Commercial Invoice
  • Packing list
  • LR/RR/GR

Additional documents depending on the nature of the claim

What are the types of cargo?

The types of cargo are :

General Cargo : Eg., Furniture, Spare Parts, Leather goods, footwear, etc

Machineries : Eg., Standard size in Containers. Oversize in Bulk or Open Top containers.

Liquid Bulk Cargo : Eg., Crude Oil, Edible Oil, etc

Dry Bulk Cargo : Eg., Coal, grain, ore and other similar products in loose form

What are the general exclusions in Marine Cargo Insurance?

Here's a list of exclusions:

  • Loss damage or expense attributable to wilful misconduct of the Assured
  • Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject matter insured
  • Loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured
  • Loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against
  • Loss damage or expense caused by inherent vice or nature of the subject-matter insured
  • Loss damage or expense directly or indirectly caused by or arising from the use any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter

Note - Can be bought back, however, war coverage on land is an excluded peril.​​

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What is the difference between inland/domestic transit and ocean cargo coverage?

The Inland transit/domestic transits covers shipments via land conveyances and/or air within the country.

Ocean Cargo provides coverage for international ocean and/or air shipments on a warehouse to warehouse basis (including the land connecting conveyance transits).