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Types of Marine Insurance Policies in India – A Complete Guide
- Pranav Phale
- Jul 2
- 2 min read
Updated: 5 days ago
Meta Title: Types of Marine Insurance Policies in India – Explained
Types of Marine Insurance Policies in India – A Complete Guide
Marine insurance plays a crucial role in safeguarding cargo, ships, and associated liabilities during the transportation of goods across seas, rivers, and even inland routes. Whether you're an exporter, ship owner, or freight forwarder, choosing the right marine insurance policy is essential to protect against unforeseen losses.
Let’s explore the main types of marine insurance policies available in India and their use cases.
1. Cargo Insurance
What It Covers: Cargo insurance covers the goods being transported from one location to another. It provides protection against loss or damage caused by theft, fire, piracy, weather events, accidents, and handling mishaps.
Who Needs It:
Exporters and importers
Manufacturers shipping goods
Traders and logistics companies
Variants:
Open Policy: Ideal for businesses making frequent shipments.
Specific Voyage Policy: For one-time shipments.
Annual Turnover Policy: Based on estimated cargo movement in a year.
2. Hull Insurance
What It Covers: Hull insurance provides coverage for physical damage to the ship or vessel itself. This includes the hull, machinery, and other fittings on board.
Who Needs It:
Ship owners
Commercial vessel operators
Charterers
Common Risks Covered:
Collisions
Storm or wave damage
Accidents in port
Fire or explosion on the vessel
3. Freight Insurance
What It Covers: Freight insurance covers the loss of freight revenue. In the event goods are not delivered due to an insured peril, the shipping company is reimbursed for the freight charges it would have otherwise earned.
Who Needs It:
Freight forwarders
Shipping companies
Exporters using FOB (Free on Board) terms
4. Marine Liability Insurance
What It Covers: This policy provides coverage against legal liabilities arising from third-party bodily injury, loss of life, or damage to third-party property caused by the insured ship or cargo.
Who Needs It:
Ship owners and operators
Port authorities
Cargo handlers
Examples:
Pollution liability
Damage to harbor infrastructure
Passenger claims (in case of passenger vessels)
5. Inland Marine Insurance
What It Covers: Despite its name, Inland Marine Insurance covers goods in transit by road, rail, or inland waterways. It bridges the gap between warehouse and seaport transportation, especially for domestic cargo movement.
Who Needs It:
Domestic traders
Warehouse-to-port exporters
Logistics companies operating within India
6. Mixed or Composite Marine Insurance
What It Covers: This is a bundled policy that combines hull, cargo, freight, and liability coverage in one plan—ideal for companies engaged in complex, multimodal logistics.
Who Needs It:
Full-service logistics operators
Freight integrators handling end-to-end shipments
Key Considerations While Choosing a Policy
Type of goods and their value
Mode of transport and route risks
Shipment frequency (one-time vs recurring)
Liability exposure (domestic vs international laws)
Custom coverage needs (war risk, piracy, etc.)
Understanding the various types of marine insurance policies in India is vital for businesses involved in global and domestic trade. Each policy type serves a specific function and addresses unique risks. Selecting the right one ensures your shipments and shipping assets are adequately protected, minimizing financial losses and disruptions.
Always consult with a trusted insurance advisor to tailor coverage as per your business operations.
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