Theft in Transit: How Marine Insurance Protects Your Goods from Loss

Subtitle: Understanding Theft Coverage and How to Ensure You're Protected

Protect Your Cargo: How BTW Financial Services Shields Against Transit Theft with Marine Insurance

Introduction: Cargo theft is a growing concern across global supply chains. From port warehouses to long-haul trucking routes, your goods are at risk — even with the best logistics in place. That's where marine insurance theft coverage steps in. But not all policies automatically cover theft, and not all thefts are treated equally.

Let’s explore how theft is treated under marine insurance, when it is covered, and how to ensure you are adequately protected.

Does Marine Insurance Cover Theft?

Yes — marine insurance can cover theft, but the scope and conditions vary depending on the policy type.

Coverage depends on:

• Type of policy (All Risk, Institute Cargo Clauses A/B/C)

• Nature and timing of the theft

• Security measures and due diligence taken

• Whether exclusions are applicable

Theft Coverage Under Institute Cargo Clauses

Most marine insurance policies in India are governed by standard Institute Cargo Clauses (ICC) — A, B, or C. Here's how they differ on theft:

Clause Type	Theft Covered?	Notes
ICC (A)	✅ Yes	All-risk policy. Theft is covered unless specifically excluded.
ICC (B)	❌ No	Theft is not covered unless accompanied by other perils (e.g., fire, explosion).
ICC (C)	❌ No	Theft is excluded. Covers only basic perils.

👉 Takeaway: If you want theft protection — ICC (A) or a customized All-Risk Policy is the right choice.

When Is Theft Covered?

Your marine policy may cover theft in scenarios such as:

• During transit by sea, air, rail, or road

• From a warehouse or port while in temporary storage

• By third-party carriers or during loading/unloading

However, claims are only valid if the insured has taken reasonable precautions, such as:

• Secure packaging

• Approved carriers

• Compliant documentation

• Notifying the insurer promptly

What Is Not Covered? (Common Exclusions)

Even with a theft clause, claims may be rejected if:

• Theft is caused by employee dishonesty or fraud

• There is gross negligence or delay in reporting

• Goods were improperly stored or labeled

• The policy does not include "Warehouse-to-Warehouse" cover

How to Maximize Protection from Theft

1. Choose the Right Policy Type Opt for ICC (A) or a comprehensive All-Risk marine policy with theft coverage.

2. Insure Full Value + Add-ons Include transit extensions, loading/unloading, and storage periods.

3. Check Geographical Risks Some regions are excluded due to high piracy/theft incidents — review carefully.

4. Maintain Clear Documentation Bill of Lading, invoice, packing list, shipping manifest — all should be accurate.

5. Report Immediately Notify your insurer within the time frame specified in your policy for theft incidents.

Theft during cargo transit is more common than you think — but so are claim rejections due to poor policy selection or insufficient documentation.

 If your goods are valuable, vulnerable, or cross borders, insure smartly.

 ➡️ A well-structured marine insurance policy can mean the difference between a financial disaster and full recovery.