Essential Things to Know about Marine Insurance

When it comes to global trade, the maritime industry is a significant aspect of ensuring seamless exporting of goods from one destination to another, both interstate and international. However, unforeseen circumstances can arise during transit, resulting in severe damage and loss of goods being transported.

The role of marine insurance in India and worldwide is to extend security to the companies and individuals participating in shipment transportation via different modes like sea, rail, land, etc. It covers any damages or losses incurred by the goods or shipments from the start of the journey all the way to the final destination.

Some of the common causes include fires, accidents, bad weather collisions, and hijacks. Under a marine insurance policy, you get cover for all non-deliveries of goods due to any unexpected issue that can hinder the journey.

This reduces the financial burden of bearing the entire expense of accidental damage or loss to the shipments.

To understand how marine insurance works, here is a list of features it offers.

Accidents or incidents covered under a marine insurance policy include fires, collisions, ship sinking, explosions, natural calamities, total loss of shipments, and overturning of ships.

Other than this, any loss or damage due to voluntary actions of a third person, breakage of bridges or tunnels while in transit, sacrifices made to protect the shipments, high waves, and unexpected stranding.

All details regarding the shipments and cargo need to be declared to the insurer in order to claim.

Based on the policy type, the tenure of the insurance can differ based on the number of transits, frequency of transits, nature of business, etc.

Genuine misconduct by the insured or the other employees of a business is not covered under any plan.

Damage or loss incurred due to poor packaging or mishandling of shipment is not covered.

General wear and tear or maintenance of the vessel or ship is not included.

Based on the different activities carried out by ships and cargo, the types of marine insurance plans can be categorised as follows:

Cargo or Transit Insurance

Any loss or damage incurred by the goods or shipments during their journey from the start point to the destination is covered under this type of marine insurance policy. This category is further divided into open policy and specific policy.

The choice between them depends on the type of coverage required and the number of transits. All these plans include third-party liability insurance that protects the owner from accidental damage to others caused by the insured ship or cargo.

Freight Insurance

The freight insurance category is specifically designed to protect the shipping company from unexpected damages or losses incurred by the freight during transit. If such a situation arises, the insurer is responsible for compensating the insured for the loss or damage.

Hull Insurance

This category of marine insurance policy covers any damage or loss incurred by the ship or water vessel in regard to machinery, different parts, or equipment involved. Hull insurance is highly beneficial for the ship or cargo owners.

Liability Insurance

When the ships and cargo are in transit, unexpected accidents or situations can arise which can cause harm or other damage to the crew members and the cargo. Under liability insurance, the damages and injuries incurred by the ship owners due to events out of their control are covered.

Purchasing a marine insurance policy brings about numerous benefits. Some of the top benefits include the following:

Financial Protection- One of the key benefits of marine insurance is the increased financial protection in times of unforeseen circumstances that result in severe loss, damage, and heavy expenses.

Peace of Mind- With a marine insurance policy, the insured benefits from increased peace of mind. They are guaranteed a financial safety net in case of accidents, thefts, etc., making it easier to operate efficiently.

Scope of Coverage- Based on your coverage needs, most insurance providers allow policyholders the ability to increase scope of coverage. It ensures policy availability for everyone in need. This way, along with the shipments and cargo, the people onboard can also be protected.

Seamless Claim Process- The claim settlement process is quick and easy, with minimal requirements and the ease of online procedure.

24/7 Customer Support- For quick query resolution, policyholders get 24/7 customer support, ensuring no one is confused or stuck in times of need.

Follow the steps mentioned below to purchase an online marine insurance policy from Tata AIG easily:

Visit the official Tata AIG website.

Click on the “All Products” option from the top bar.

From the drop-down menu, locate the “SMEs” option and select “Marine Cargo Insurance”.

On the new webpage, enter the requested details accurately. This includes the name of the company, commodity category, voyage type, and value of the invoice.

Once done, click on “Get Plan” to proceed.

Now, on the screen, you will be required to fill in more details if requested before reading the policy terms and conditions.

After assessing the policy, combine any add-on you require.

The final marine insurance policy premium will appear on the screen.

If it is satisfactory, make the necessary payment using any one of the available digital payment options.

Post payment, you will receive a receipt, and your insurance document will be shared in your mail inbox.

Safeguarding your shipments during transit while they are sailing through the high seas is crucial to avoid excessive financial burden to cover for loss and damage. A marine insurance policy is the right safety tool to invest in to enjoy peace of mind throughout the transportation journey.

With Tata AIG, you can choose a transit insurance plan based on specific needs and requirements. Always remember to read and understand the policy terms beforehand and compare different marine insurance premiums to choose the right one.