Marine Insurance

Marine Cargo Insurance (Goods in Transit)

This covers goods or cargo while they are being transported by sea, air, or land. It typically includes:

• Damage to cargo during transport due to natural events (storms, floods, etc.)
• Theft or piracy during the journey
• Breakage, leakage, or spoilage(especially for perishable goods like food or pharmaceuticals)
• Accidental damage during loading, unloading, or handling

Marine Liability Insurance

This provides coverage for liabilities that may arise while operating a vessel, including:

• Third-party damage: Damage to another vessel, property, or cargo caused by your ship
• Injuries to passengers or crew: Medical costs and compensation for injuries onboard
• Pollution liability: Damage caused by pollution (e.g., oil spills from a vessel

Freight Insurance

Freight insurance covers the risk of losing freight charges if the goods being shipped are lost or damaged. It can cover:

• Loss of freight charges if the cargo is destroyed or damaged during transit
• Unpaid freight costs due to shipment delays or damage

Protection and Indemnity (P&I) Insurance

This is a specific type of liability insurance for shipowners, covering:

• Crew injuries or illness
• Cargo damage claims made by third parties
• Environmental pollution incidents (e.g., oil spills)
• Wreck removal costs

Total Loss or Partial Loss

Marine insurance policies often cover:

• Total Loss: The complete loss or destruction of goods or vessel (e.g., sinking or total damage).
• Partial Loss: Damage to goods or cargo that is repairable or recoverable.

War and Strikes Coverage (Optional)

Some marine insurance policies offer additional coverage for:

• War-related risks, such as damage from military action
• Strikes or civil disturbances that disrupt the shipping process

Damage Due to Negligence or Poor Maintenance

• Failure to maintain the vessel: If the damage occurs due to poor maintenance or neglect by the owner or operator, it may not be covered.
• Lack of proper care for goods: If cargo is not packed or handled correctly, leading to damage, the claim may not be accepted.

War, Civil Strife, or Terrorism (unless specifically covered)

• War: Most basic marine policies do not cover damage caused by war, civil unrest, or terrorism. However, War Risk Insurance can be purchased separately.
• Piracy: While theft and robbery are generally covered, some policies do not include piracy unless explicitly stated.

Wear and Tear

• Normal wear and tear: Any damage or deterioration that occurs as a result of regular use or aging (such as rust, corrosion, or gradual deterioration) is typically not covered.

Illegal Activities

• Smuggling or illegal shipping: If goods are involved in illegal activities, like smuggling or trafficking, the insurance will not cover any resulting damage or loss.
• Transporting banned items: Shipping prohibited goods may result in a claim being denied.

Delays or Losses Not Caused by Insured Risks

• Shipping delays: If goods are delayed but not damaged, delays caused by factors like port congestion or shipping schedules are not covered.
• Loss of profits: Marine insurance typically covers physical loss or damage, but it doesn’t cover loss of income or business resulting from delays or accidents.

Natural Disasters and Weather Conditions (if excluded)

• Some policies may exclude specific natural disasters such as:

• Floods or earthquakes, depending on the policy
• Hurricanes, typhoons, or storms, unless specifically covered
• Ice damage(for vessels operating in icy waters), unless included

Faulty Packaging or Improper Handling

• Improper packaging: If cargo is not packed properly, leading to damage during transit, the claim may be denied.
• Incorrect labeling: Goods shipped with incorrect or misleading labels might not be covered if the mistake leads to damage or loss.

Loss or Damage Due to Hidden Defects

• Pre-existing defects: If the goods or vessel have hidden defects that cause damage during transit, these may not be covered by standard marine insurance.

Losses from Unreported Incidents

• Failure to report damage promptly: Most insurance policies require that any incident or damage be reported immediately. Failing to do so may lead to claim denial.

Non-Compliance with Terms

• Violating policy terms: If you don’t comply with the terms and conditions of the policy (such as required inspections or safety procedures), it can void the coverage.

Claim Form

The official claim form provided by your insurer, which you must complete with details of the incident.

Policy Document

A copy of the marine insurance policy to prove you are insured and show the terms and conditions.

Bill of Lading

This is a contract between the shipper and carrier, confirming the shipment of goods. It’s important for proving ownership and shipment details.

Invoice or Shipping Bill

The original invoice for the goods being shipped or the shipping bill helps to verify the value of the goods.

Survey Report

A marine surveyor’s report detailing the condition of the cargo, ship, or goods after the incident. This report helps to assess the extent of the damage.

Photographs/Videos

Visual evidence of the damage or loss, such as photos or videos taken immediately after the incident.

Cargo Receipt

Proof of receipt of the cargo by the consignee at the destination port, which helps confirm that the goods were indeed delivered.

Shipping Documents

Other relevant shipping documents like a packing list, certificate of origin, or customs clearance papers might be needed, depending on the nature of the cargo.

Damage or Loss Certificate

If the goods are damaged or lost, a certificate from the consignee or carrier confirming the damage/loss.

Letter of Protest(if applicable)

A formal letter of protest issued if damage occurs at the port or during unloading.

Proof of Payment/Transaction

A proof of payment or transaction receipt to show the payment made for the cargo or shipment.