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What is Time Policy in Marine Insurance?

  • Author :
  • TATA AIG Team
  • Published on :
  • 05/01/2024
  • 2 min read

Time policy is one of the most important aspects of a marine insurance contract. The time policy in marine insurance refers to the specified time for which the insured is covered under the marine insurance contract.

In most cases, the time policy in marine insurance lasts for one year or 12 months. Once the time period specified in the marine insurance policy is over, the cargo insurance plan ceases to exist. Thus, in case any losses or damages that occur after the policy has lapsed will not be covered by the insurer.

A marine insurance policy is essential to have financial protection if there is a loss or damage to the goods while they are in transit. There are two types of marine insurance — transit insurance and marine cargo insurance.

Let us get into the details of the time policy in marine insurance.

Benefits and Features of a Time Policy

The time policy in marine insurance has a specified period of time for which it is offered. The period of time policies in India is 12 months. Here are some of the features and benefits of a time policy:


The insured has a right to get coverage for any peril that might occur during the policy tenure. Any damages that may occur during the tenure will be covered under the marine insurance policy.


The tenure of the policy is 12 months. The insured’s property might depend on the time policy's coverage in marine insurance. The insurer with machinery and hull insurance is at utmost advantage during this time. The ship’s machinery is prone to very high risk. Hence, this kind of marine insurance policy is quite suitable for people with a machinery and hull insurance plan.


The period of the policy is 12 months. It does not matter whether the policyholder chooses to take multiple or a single voyage during this time. The policy will be liable to cover the insured against peril in each voyage that they take. The marine cargo insurance coverage will not be affected even if you choose to take a lot of voyages.

Additional Features of the Time Policy in Marine Insurance

Here are some of the additional features of the time policy:

Time period

The tenure of the policy is generally fixed at one year. However, the insured has to decide how short they want their time policy to be. There are no restrictions on the time that you wish to choose, which is less than one year. It is your decision about how short you want the tenure of the policy to be.

Continuance clause

The time policy automatically lapses on the date of expiry of the policy. This might lead to issues for the insured. There might be some delay in the voyage due to some misfortune. These kinds of delays might expose the ship to different liabilities outside the tenure of the policy. Thus, this is one problem that has to be addressed.

The insurance companies then came up with this continuance clause. The continuance clause provides some extension to the time policy in marine insurance. If the ship cannot complete its voyage within the date of the policy’s expiration, the ship will continue to be covered under the time policy until the ship reaches its destination.

For example, if the policy was to expire on 20th March but due to unforeseen circumstances, the ship would reach on 23rd March, the time policy will continue to cover the ship till 23rd March. This provides the ship the adequate time to reach the destination safely. Thus, the insured must opt for a continuance clause in any marine insurance policy.


Ship faces a lot of unforeseen circumstances while on a voyage. Marine insurance ensures that the ship has coverage against perils that it might face, but if the policy expires, the ship will be left exposed to various liabilities. So, having a continuance clause becomes essential.

The continuance clause ensures that the ship has adequate coverage against perils till the time it reaches the port, even if the policy has expired during the voyage. It will keep the insured financially safe from any mishaps during the ship’s transit. Thus, reading the policy carefully and including the continuance clause in a time policy is essential.

Tata AIG offers a marine insurance policy whose features include protection against loss or theft, risk management, seamless international trade, etc.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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