Here are 10 FAQs on Marine Insurance in India:
1.What is marine insurance?
Marine insurance protects against losses or damages to ships (hull), cargo, and other marine interests during transit by sea, air, or land.
2.What are the different types of marine insurance?
Marine Cargo Insurance: Covers goods in transit against various risks.
Marine Hull Insurance: Covers the ship or vessel itself against damage.
Freight Insurance: Protects the freight revenue (money earned for transporting goods).
3.Who needs marine insurance?
Importers and exporters of goods
Ship owners and operators
Freight forwarders and logistics companies
Anyone with financial interest in goods or vessels involved in sea trade.
4.What are the common risks covered by marine cargo insurance?
Perils of the sea (storms, sinking, collisions)
Fire, explosion
Theft, piracy
Damage during loading/unloading
War, strikes, riots
General average (intentional sacrifice of part of the cargo to save the rest)
5.What are the standard marine insurance clauses in India?
Institute Cargo Clauses (A), (B), (C) – These are the most common clauses specifying different levels of coverage, with (A) being the widest.
6.What factors affect marine insurance premiums?
Type of cargo (fragile, perishable goods attract higher premiums)
Nature of voyage (route, distance, known risk areas)
Packaging of goods
Value of goods or vessel insured
Age and condition of the ship (for hull insurance)
Insurer’s underwriting criteria
7. What does “open cover” mean in marine insurance?
An open cover is a continuous marine insurance policy, especially useful for businesses with frequent shipments. It avoids the need for individual declarations each time.
8. What is the process of filing a marine insurance claim?
Notify your insurer immediately upon damage or loss.
Submit supporting documents (survey report, bills of lading, invoices, etc.)
The insurer investigates the claim and pays the amount if approved.
9.What are the key principles of marine insurance?
Utmost good faith: Both parties must disclose all relevant information.
Insurable interest: The insured must have a financial interest in the cargo or vessel.
Indemnity: Compensation is limited to the actual loss suffered.
10. Is marine insurance mandatory in India?
While marine insurance is not explicitly mandatory, certain trade contracts or financing agreements may require it. It’s heavily advised to protect against the risks of international trade.
