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Marine Insurance Policy is a financial protection for individuals and businesses. It protects your goods while they're being transported from one location to another, whether it's on a ship, in a storage place, or on their way to you. It's a comprehensive protection plan to ensure your valuable goods remain in good condition. In a globally connected world, marine insurance provides you with the confidence to do business worldwide without worries about your goods.
A Marine insurance policy is a type of insurance that provides coverage for boats, ships, and other types of marine vessels against various risks and perils. These risks may include damage to the vessel itself, as well as liability for bodily injury or property damage caused to others.
This type of insurance not only covers the goods on ships; it also provides protection when goods are moved by train, truck, or plane. It's a full package for individuals and businesses who want insurance while their goods are in transit. Whether your goods are traveling by land, sea, or air, marine insurance ensures their safety.
A marine insurance policy is like a safety plan for goods and ships during transportation, and it has important features. All these features make marine insurance important for people and businesses in shipping and transportation.
Voyage Coverage
It protects goods during a specific journey, shielding them from damage, loss, or theft while on the move.
Comprehensive Protection
This insurance covers not only the journey but also the loading, unloading, and storage of goods, giving all-around protection.
Covers Many Risks
It protects against various risks like natural disasters, accidents, theft, and unexpected events that can harm goods.
Customizable Policies
You can customize the insurance to fit your needs, whether it's for a single shipment or multiple shipments.
Flexible Premiums
The cost depends on factors like the type of goods, their value, shipping route, and mode of transportation, so you can choose what suits your budget.
No Coinsurance
Unlike some other insurance types, there's no coinsurance, meaning you get full coverage.
International Coverage
It's not just for domestic shipping; it covers international shipments, making it great for global trade.
Marine insurance policy covers many types of risks. The exact coverage can vary based on the type of marine insurance and the terms set by the insurer.
Here are the main things it helps with:
If there's a fire on the ship that damages goods or the vessel, the marine insurance policy pays for those losses.
If the ship sinks, partially or completely, the insurance covers the loss or damage to cargo and ships.
When an explosion happens on the ship and it causes damage, marine insurance takes care of those losses.
If the ship tips over or capsizes, which can lead to cargo damage, marine insurance protects against these incidents.
When goods are washed away by rough seas, the insurance compensates for the lost cargo, so you don't lose money.
If someone steals the cargo during transit, the insurance helps you recover your losses.
When water enters the ship during transportation, causing damage like leaks or flooding, marine insurance covers it.
When water enters the ship during transportation, causing damage like leaks or flooding, marine insurance covers it.
Some marine insurance policies may include extra coverage for risks linked to war, piracy, or strikes. You can choose these if needed.
The marine insurance policy comes with protection for goods and ships, but there are certain things it doesn't cover. Remember that insurance policies can vary between providers, and the terms and conditions may be different.
Here are the main points that are usually not covered:
If someone deliberately causes damage or loss, the insurance won't pay for it. It's for accidental problems, not intentional ones.
If goods get damaged because they weren't packed well, the insurance won't help. It's the shipper's job to pack things properly.
The insurance doesn't cover losses due to financial issues like bankruptcy or insolvency of the insured, the shipping company, or anyone else involved in the shipment.
Damage from riots, protests, or worker strikes is typically not included. These are seen as events beyond the insurer's control.
If you use a container that's in bad shape and causes problems, the insurance may not cover it. Make sure that your containers are in proper and well-maintained condition.
Some marine insurance for cargo policies might not cover bulk cargo, which is stuff transported in large quantities without specific packaging. You might need a separate policy for this.
Marine insurance is mainly for physical damage or loss, not for financial losses because of shipping delays or other time-related issues.
Below we have mentioned some of the Best Marine Insurance Policy in India which can be chosen according to your specific needs, business requirements, and conditions.
| Insurer | Claim Settlement Ratio |
|---|---|
| IFFCO Tokio Marine Insurance | 98.79% |
| Oriental Marine Insurance | 93.08% |
| Cholamandalam Marine Insurance | 89.86% |
| New India Assurance Marine Insurance | 86.17% |
| Universal Sompo Marine Insurance | 84.03% |
| Magma HDI Marine Insurance | 78.38% |
| SBI General Marine Insurance | 75.51% |
| Royal Sundaram Marine Insurance | 74.48% |
| Tata AIG Marine Insurance | 73.40% |
| Liberty Videocon Marine Insurance | 72.52% |
| National Marine Insurance | 72.01% |
Disclaimer: The "claim settlement ratio" is a measure of the percentage of claims that have been paid out by the insurance company among the total claims made by the policyholders.
Marine insurance policy provides safety for goods and ships when they are being moved across the sea. There are different types of marine insurance to suit different needs which are mentioned below.
Export: Enable the shipment of goods from India to destinations across the world.
| Types of Plans Under Marine Insurance | Clause/Extent of Coverage | Geographical Classification |
|---|---|---|
| Single | All risks except rainwater damage, Accidental Damage |
Inland: Transit within the Indian border. Import: Facilitate the movement of goods from various global locations into India. Export: Enable the shipment of goods from India to destinations across the world. |
| Annual Open | All risks except rainwater damage, Accidental Damage |
Inland: Transit within the Indian border. Import: Facilitate the movement of goods from various global locations into India. Export: Enable the shipment of goods from India to destinations across the world. |
| STOP | All risks except rainwater damage, Accidental Damage |
Inland: Transit within the Indian border. Import: Facilitate the movement of goods from various global locations into India. Export: Enable the shipment of goods from India to destinations across the world. |
| Hull | Insurance specifically for the transportation mode (Truck, Ship, Train, Airplane) used by the vessel. |
Inland: Transit within the Indian border. Import: Facilitate the movement of goods from various global locations into India. |
Single: This type of insurance covers one trip or journey. It's useful for people or businesses who don't ship things often and want to protect a specific shipment.
Annual Open: Unlike single insurance, this policy gives you continuous coverage for multiple trips throughout the year. It's great for businesses that do a lot of shipping because it keeps all their shipments protected without the hassle of getting separate policies each time.
Stock Throughput (STOP): This is comprehensive insurance that covers your goods from the moment they leave the warehouse, during transportation, and until they arrive at their destination. It's like an all-in-one solution for businesses that want to protect their inventory during the entire supply chain.
Hull: This type of insurance is for ships and boats. It helps cover the cost if the ship gets damaged or lost. Shipowners and operators use it to reduce the financial risks of accidents or losses involving their vessels.
There are some factors that determine the premium of the marine insurance policy that you should look for before buying. Below, we have mentioned some of the factors.
| Cover Amount | All Risk Cover Premium | Basic Cover Premium |
|---|---|---|
| 10,000 up to 20 lacs | ~Rs 1,180 | ~Rs 701 |
| 20 Lacs - 50 Lacs | ~Rs 1,240 - 2,950 | ~Rs 818 - 1950 |
| 50 Lacs-75 Lacs | ~Rs 3,010 - 4,425 | ~Rs 1,986 - 4,425 |
| 75 Lacs- 1 Cr | ~Rs 4,484 - 5,900 | ~Rs 2,959 - 3,894 |
| 1 Cr - 2.5 Cr | ~Rs 6,000 - 14,750 | ~Rs 3,900 - 13,275 |
| 2.5 Cr - 5 Cr | ~Rs 14,750 - 29,500 | ~Rs 13,275 - 26,550 |
Disclaimer: These are tentative prices subject to change according to commodities and insurers.
When purchasing a marine insurance policy, certain documents are required to ensure the accuracy and reliability of the coverage. These documents serve as essential proof of ownership and value, providing comprehensive information about the vessel being insured.
Here are the documents typically required to buy a marine insurance policy:
Application Form
The first document required is the completed application form. This form captures vital details about the vessel, such as its type, age, dimensions, and purpose, along with the owner's contact information and previous insurance history.
Vessel Registration
This document proves legal ownership of the vessel and includes crucial information like the vessel's name, registration number, and country of registration. It also confirms compliance with local maritime regulations.
Purchase Invoice
The purchase invoice establishes the value of the vessel and serves as evidence of ownership. It details the purchase price, date of purchase, and any additional equipment or accessories included in the sale.
Survey Report
A pre-purchase survey or condition survey report is often required for older vessels. This document provides a comprehensive inspection report, including the vessel's condition, structural integrity, any existing damages, and recommendations for repairs or modifications.
Vessel Specifications
Providing detailed information about the vessel's specifications is essential. This includes its length, beam, depth, gross tonnage, propulsion type, horsepower, and fuel capacity. These details determine the insurance coverage needed and enable accurate premium calculations.
Crew Information
If the vessel requires crew members, documents such as crew lists, certificates of competency, and medical certificates may be required to verify their qualifications and experience.
Navigation Plans
Additional documents such as planned destinations, routes, and intended use of the vessel may be requested. These documents help assess the voyage's risk level and determine the appropriate coverage.
Insurance History
Providing information about any previous marine insurance policies, including claims history, is crucial for underwriting purposes. This information helps insurers assess the risk associated with the vessel and determine appropriate pricing.
Renewing a marine insurance policy with Okbima is a straightforward process that can be completed online in just a few simple steps. With Okbima you will get comprehensive coverage at the best price with great customer service.
Here is a step-by-step guide on how to renew your marine insurance policy with Okbima:
Review your current policy, Identify your coverage needs, and prepare the necessary documents such as a copy of the current marine insurance policy, renewal application form, proof of ownership, and proof of value.
Once the documents are completed, visit the Okbima website, click on the “More” icon on the homepage, and select the “Marine Insurance” icon.
On the “Marine Insurance” page, fill in the required details such as company name, mobile number, email ID, and location.
After providing the required details, Okbima will display different policy options for you to compare with their coverage and premiums.
Now, review the policy options, choose the policy that best suits your needs, and complete the payment process.
Once payment is completed, you will get the marine insurance policy details on your email ID.
When you need to raise the claim for the marine insurance policy, you'll typically require the following documents:
Marine insurance is a complex field, and it has special clauses to deal with specific situations and needs. Two important ones are the Inland Transit Clauses (ITC) and the International Cargo Clauses (ICC).
Inland Transit Clauses (ITC)
These are for when goods are being moved within one country, whether by land or water. They spell out the rules for covering goods during domestic transportation, making sure they're protected from damage or loss.
International Cargo Clauses (ICC)
These clauses apply when goods are traveling across international borders, like when they're shipped by sea or air. They give wide-ranging coverage for cargo during international journeys and deal with the particular risks linked to crossing borders, which might have different laws and regulations.
Marine insurance relies on some important principles to make sure things are fair and work effectively. These principles are essential for both the people who buy insurance (policyholders) and the companies that provide it (insurers). Here are the key principles:
Everyone involved, both the person buying the insurance and the company offering it, must be completely honest and provide accurate information when getting into a marine insurance deal. If someone hides facts or lies, it can make the policy invalid.
The person buying the insurance must prove they have a real financial stake in what's being insured. In marine insurance, this usually means showing that they own the cargo or the vessel they want to insure.
This principle makes sure that the insurance payout only covers the actual loss suffered, not more than that. Insurance isn't supposed to be a way to make a profit. This keeps people from taking unnecessary risks or getting too much insurance.
This principle helps figure out the main or closest reason for a loss. Insurers look at whether the loss is directly connected to a risk that the insurance covers. Understanding the main cause helps decide if a claim is valid.
After paying a claim, the insurance company can step in and take legal action or make claims against others responsible for the loss. This way, the responsible party has to bear the financial burden.
If a loss is covered by more than one insurance policy, this principle tells us how each policy should share the payment for the loss. Usually, insurers pay in proportion to the amount they insured.
The Marine Insurance Act of 1963 is an important set of laws in India that controls how marine insurance works. It sets the rules for things like honesty, having a financial stake in what's insured, warranties, and other key parts of marine insurance.
This Act is all about making sure that marine insurance in India is open and fair, and it looks out for the interests of both the insurance companies and the people who buy the insurance.
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