Marine Insurance

Transit Insurance is one of the oldest forms of insurance which provides protection to policyholders against loss or damage to cargo in transit from one location to another. This form of insurance also provide protection to water borne moving assets and associated liability risks arising out of such operations. Followings are the most common form of Liability insurance policies being offered by insurers in India:

The main modes for inland transits are by road and by rail. However, some inland transits also take place by inland waterways and by post/courier. Marine Cargo Insurance Policy covers loss or damage to cargo in transit from one location to another within India. Marine cargo policy duration of cover subject to certain conditions is operative for the entire duration of the journey without any period of insurance. Marine Cargo Insurance (Inland) policy can be Specific Policy is issued to cover a single transit or Open Policy for a series of consignments which have to be periodically declared

Marine Cargo Insurance (Overseas) Policy covers loss or damage to cargo in transit from one location to another situated in a different country. Incidental inland transits by road, rail, inland waterways etc. from seller’s warehouse to discharge port are covered under CIF(Designation Port) based Policy. However, transit from discharge port to buyer’s warehouse can also be covered under CIF based Policy.

Hull and machinery insurance provides physical damage protection for the ships / vessels and the machinery which is part of it. This Policy, also referred to as H&M Policy, covers loss or damage to Hull value and machineries/ equipment of the vessel. Hull Insurance Policies are generally bifurcated into Major Hull Insurance and Sundry Hull Insurance meant for deep sea vessels and inland or costal vessels respectively.

Builder’s Risks insurance Policy is a purchased by ship builders and contractors to cover a new vessel building project before the owner takes possession. It is important for a yard to be able to protect the value of the newbuilds during construction. A Builder’s Risks policy covers loss and liability from accidents during the build period and continues during sea trials, till ultimate delivery to owners.

Protection and indemnity (P&I) liability insurance is specifically designed to address the unique needs of the marine industry. It covers practically all maritime liability risks associated with the ownership and operation of a vessel, including third-party risks for damage caused to cargo during transit, risks of environmental damage such as oil spills and pollution, war, and political risks.

There are plenty of things that can go wrong when chartering a vessel – from lost cargo and hull damage, to passenger, crew or third-party injuries. Charterer of a vessel are exposed to numerous responsibilities which may turn into costly liabilities. Charterer’s Legal Liability Insurance Policy protects against risks either directly to third parties or through contractual liabilities and indemnities.