Marine cargo insurance protects your cargo or the goods that are being imported or exported. Since these goods have a high value, losses incurred by them mean a huge financial loss for your business. This insurance covers various types of goods in transit, protecting you from huge financial losses.

It provides coverage against risks such as theft, damage during transit, natural disasters or accidents. Whether your cargo is being transported by sea, air or land, marine insurance for export goods ensures that you are compensated for unforeseen losses, safeguarding your business investments and ensuring smooth trade operations.

Also Read: Types of Marine Insurance

1. Proposal and Risk Assessment

The insured submits a proposal detailing the nature of goods, transit routes and associated risks.

2. Policy Issuance

Based on the risk evaluation, the insurer suggests a policy that offers adequate coverage, specifying exclusions and premium details and issuing it.

3. Claim Filing

In the event of damage or loss, the insurer files a marine insurance claim with the necessary documents, including proof of loss and bills of lading.

4. Claim Settlement

After verifying the claim, the insurer compensates the insured as per the policy terms.

5. Customisable Coverage

The insurer offers flexibility in choosing coverage based on your risks, such as war or piracy.
Marine insurance ensures smooth operation for exporters and importers, tackling risks associated with global trade. It also ensures peace of mind and financial stability.

Also Read: Essential Things to Know about Marine Insurance

• Open Cover Policy

This policy provides continuous coverage for all shipments within a specified period, usually a year. It is ideal for businesses with frequent trade.

• Specific Voyage Policy

This policy protects goods for a single, specific journey, commonly used for one-time shipments.

• Annual Turnover Policy

It is designed for exporters/importers, and it covers all shipments made within a year based on total turnover.

• Time Policy

This policy offers coverage for goods or vessels for a certain time, which is often used for maintenance or repairs.

• Floating Policy

This policy is ideal for traders who have irregular shipping schedules and covers goods up to a certain value.

These policies cater to the diverse needs of Indian exporters and importers, ensuring robust protection against transit-related risks.

Marine insurance policy for export and import plays a crucial role in safeguarding businesses involved in global trade. Here is why it is essential:

• Financial Protection: Covers losses from damaged or lost goods during transit, minimising financial setbacks.

• Risk Mitigation: Protects against various risks, including theft, natural calamities and accidents, to ensure smooth operations.

• Customised Coverage: Offers tailored policies for specific trade needs, such as high-value goods or perishable items.

• Compliance with Regulations: Ensures adherence to trade regulations and contractual obligations in international trade.

• Business Continuity: It minimises disruptions by compensating for losses and enabling smooth operation and customer satisfaction.

Marine insurance is vital for reducing uncertainties and ensuring financial security in export and import activities.

Also Read: What is Hull Insurance? What Does it Cover and Not Cover?

As discussed, a marine insurance policy is a vital tool for businesses involved in export and import, offering protection against financial losses arising from risks during transit. Coverage options like cargo, hull and liability insurance ensure smooth trade operations by helping you manage challenges and safeguard both goods and vessels.

To protect your business from transit-related risks, explore TATA AIG’s marine insurance policy. Our cargo insurance policy is designed with comprehensive coverage customised to your shipping needs, ensuring peace of mind during every transit.