A simple definition of the word insurance would be “Protection against future loss.”  Marine insurance is another variant of the general term ‘insurance’ and as the name suggests is provided to ships, boats and most importantly, the cargo that is carried in them.

Marine insurance is very important because through marine insurance, ship owners and transporters can be sure of claiming damages especially considering the mode of transportation used. Of the four modes of transport – road, rail, air and water – it is the latter most which causes a lot of worry to the transporters not only because there are natural occurrences which have the potential to harm the cargo and the vessel but also other incidents and attributes which could cause a huge loss in the financial casket of the transporter and the shipping corporation.

Having this policy is essential for businesses and individuals alike. Business shipments are usually high in value and any damage can directly impact business.

When it comes to an individual, relocation is regarded as one of the most stressful life events, be it for job change or marriage.

Whatever your reason may be for transporting your goods, marine policy protects your goods against material damages.

All the modes of transportation namely, air, water, rail & road are covered under this policy. Goods being transported via courier services are also insured.

Your goods in transit will be protected against vehicle collision, overturning, derailment, or accidents happening anywhere from the source to destination. This coverage can also be extended to loss or damage of goods due to theft, strike, riots, terrorism, and other hostile acts by human by opting for appropriate coverage as per one’s needs...

Following is a list of some of the common instances or losses which marine insurance provides cover against:

  • Import or export shipments.

  • Goods which are being transported via sea, rail, air, road or post.

  • Goods being transported by coastal vessels which ply between different ports inside the country.

  • Goods which are transported via vessels plying along rivers.


Container Ship

Institute Cargo Clause (B): Named Peril basis.

This cover is similar to ‘C’ Clause, but in addition covers:


  • Earthquake, volcanic eruption or lightning

  • Washing Overboard

  • Entry of sea, lake or river water into the vessel, craft, hold, conveyance, container, liftvan or place of storage

  • Total loss of any package lost overboard or dropped whilst loading onto, or unloading from, vessel or craft.


Institute Cargo Clause (C): Named Peril basis


This is the most restricted clause and covers only: loss or damage reasonably attributable to

  • Fire or explosion

  • Vessel or craft being stranded grounded sunk or capsized

  • Overturning or derailment of land conveyance

  • Collision or contact of vessel craft or conveyance with any external object other than water

  • discharge of cargo at a port of distress and loss or damage caused by – General Average Sacrifice / Jettison.


Types of Marine cover


  1. Open cover

  2. Open policy

  3. Sales turnover policy

  4. Specific voyage