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To buy marine open policyMarine Cargo Insurance
Marine insurance offers financial protection to businesses against the loss or damage of goods in transit, whether shipped by sea, air, road, rail or inland waterways. It covers cargo during various stages of transport, including loading and unloading at ports and movement between destinations.
For businesses engaged in international and domestic trade, as well as freight forwarders and logistics providers, marine insurance helps mitigate the financial impact of unforeseen events like accidents, theft, natural disasters or delays. It plays a critical role in safeguarding the value of goods throughout their journey.
At TATA AIG, we offer marine insurance in India with both domestic and global coverage, designed to support businesses of all sizes with flexible, reliable protection across every mode of transport.
What is Marine Insurance?
Marine insurance is a contract where the insurer agrees to cover financial losses a business may face while transporting goods across sea, air, road, rail or inland waterways. It broadly includes cargo insurance (for goods in transit) and hull insurance (for damage to vessels, machinery or equipment).
The marine insurance meaning also extends beyond just transit routes; it encompasses multimodal transport, tailored policies and legal compliance.
Policies are often aligned with international trade terms like CIF (Cost, Insurance and Freight), FOB (Free On Board), DDP (Delivered Duty Paid) and EXW (Ex Works), which define who bears the risk during different stages of transit. This makes marine insurance vital for risk mitigation and compliance.
In India, marine insurance is governed by the Marine Insurance Act, 1963 and regulated by the Insurance Regulatory and Development Authority of India (IRDAI).
How Does Marine Cargo Insurance Work?
The business will buy marine insurance from TATA AIG before shipping their cargo.
Its pricing is determined based on factors like the value of the cargo, level of risk involved and mode of transportation.
The cargo owner or shipper pays the premium to TATA AIG in exchange for marine and cargo insurance coverage during transit
The policy will cover loss or damage to the cargo caused by natural disasters such as storms, lightning and earthquakes, and unintentional man-made risks like fire.
In case of loss or damage, the shipper can file a claim with TATA AIG to be compensated for their loss.
TATA AIG investigates the claim and determines the compensation due to the cargo owner or shipper.
The settlement amount is usually based on the value of the cargo and the extent of the loss or damage.
Features and Benefits of Marine Insurance
Marine insurance offers a critical layer of protection for businesses involved in transporting goods across domestic and international borders. Here are the key features of marine insurance:
Financial Protection Against Cargo Loss
Marine insurance provides compensation for the loss or damage of goods in transit, whether due to theft, natural calamities, collisions or accidents.
Supports International Trade
As per the International Union of Marine Insurance (IUMI), marine insurance is intrinsically linked to global trade growth. It underpins cross-border transactions by reducing financial uncertainty and facilitating smoother logistics.
Customisable Coverage Options
Choose from all-risks or specific risks, single-transit or annual plans, get specific coverage for war or strike cover and tailor coverage based on cargo type, route and risk level.
Strengthens Business Reputation
Prompt claim settlements and reliable coverage help businesses maintain strong relationships with customers, suppliers, logistics partners and other stakeholders.
Supply Chain Resilience
Businesses can manage trade risks proactively, reduce capital lock-in and ensure continuity in global and domestic supply chains, further highlighting the importance of marine insurance in supporting long-term business sustainability.
Competitive Advantage
Freight forwarders, exporters, logistics providers and stakeholders with insured operations offer greater trust and reliability and thus improve their standing in the marketplace.
Principles of Marine Insurance
Good Faith
Both the insurer and insured must disclose all relevant information truthfully, ensuring transparency and avoiding fraud.
Insurable Interest
To be eligible for coverage, the policyholder must have a legal or financial stake in the cargo or vessel.
Indemnity
Insurance compensates only for actual loss, aiming to restore - not profit - the insured to their original financial position.
Contribution
If multiple policies cover the same risk, each insurer contributes proportionally to the claim.
Proximate Cause
The insurer is liable only if the covered peril is the direct cause of the loss.
Subrogation
After settling a claim, the insurer can recover the loss amount from the third party at fault.
Advantages of Marine Insurance by TATA AIG
Automatic insurance protection
Marine Loss Control Engineering
Assistance in identifying potential hazards
Cargo protection for specific voyage risks
Multinational Cargo Transport Program
Dedicated Marine Cargo Underwriting Service
Who Needs a Marine Insurance Policy?
Ship owners
Ship owners are among the most obvious candidates for marine insurance. They need vessel coverage, including protection against damage, loss, and liability claims.
Freight forwarders
Freight forwarders who arrange the transportation of goods and are responsible for ensuring they are delivered safely to their destination.
Businesses or individuals
Businesses or individuals who ship goods overseas. Marine insurance can cover damage or loss of cargo during transport, including theft, piracy, or natural disasters.
Shipbuilders and repairers
Shipbuilders and repairers need marine insurance to cover them against risks associated with the construction, repair, or maintenance of ships.
Port authorities and terminal operators
Port authorities and terminal operators who are responsible for safely and efficiently handling cargo and vessels in ports.
Marine contractors
Marine contractors involved in offshore oil and gas exploration need marine insurance for risks associated with equipment damage, or pollution.
Charterers
Charterers who rent ships for a specific period and are responsible for the vessel's operation during that time need marine insurance for ship protection.
Who Needs Marine Insurance?
Here are some of the people and businesses who may need marine insurance:
Ship owners are among the most obvious candidates for marine insurance. They need vessel coverage, including protection against damage, loss, and liability claims. Freight forwarders arrange the transportation of goods and are responsible for ensuring they are delivered safely to their destination. Marine insurance is essential for freight forwarders, as it covers any losses or damages that may occur during transit.
Marine insurance is critical if you are a business or individual shipping goods overseas. It can cover damage or loss of cargo during transport, including theft, piracy, or natural disasters.
Shipbuilders and repairers need marine insurance to cover them against any risks associated with the construction, repair, or maintenance of ships. This may include damage to vessels while they are in the shipyard or liability claims from third parties.
Port authorities and terminal operators are responsible for safely and efficiently handling cargo and vessels in ports. Marine insurance is essential to protect them against any damage, loss, or liability claims arising from their activities.
Port authorities and terminal operators are responsible for safely and efficiently handling cargo and vessels in ports. Marine insurance is essential to protect them against any damage, loss, or liability claims arising from their activities.
Marine contractors, such as those involved in offshore oil and gas exploration, need marine insurance to protect them against the risks associated with their activities, such as equipment damage, personnel injury, or pollution.
Charterers rent ships for a specific period and are responsible for the vessel's operation during that time. Marine insurance is necessary to protect them against any losses or damages that may occur while the vessel is under their control.
The specific type of marine insurance needed will depend on the individual circumstances and risks involved.
Marine Cargo Insurance for Exporters and Importers
Financial protection
Financial protection against theft, damage, natural disasters, accidental collisions and other transit-related risks.
Legal compliance
Legal compliance with international regulations and aligns with the specific Incoterms - CIF, FOB, DDP, etc - for smooth operations and a secure global trade.
Business continuity
Business continuity through uninterrupted supply chain operations and increased trust among buyers, suppliers and partners.
Customised policies
Customised policies tailored to the nature of cargo, destination, transport mode and specific responsibilities of the parties involved.
Smoother customs clearance
Smoother customs clearance and documentation for faster processing, fewer delays and efficient trade networks.
Trade financing support
Trade financing support, as insured shipments are often a prerequisite for credit and loans from financial institutions.
How to Buy TATA AIG Marine Insurance?
Visit the TATA AIG website.
Navigate to the Marine Cargo Insurance page, under Business Insurance.
Select your preferred marine insurance plan.
Provide the necessary details about your cargo and mode of transport.
Upload all the required documents, including business and personal details.
We will give you a quote for your preferred coverage.
Make the payment.
Initial Requirements When You Buy Marine Insurance Online
- Business Details: Customer or company name, registration information and nature of trade.
Transportation Details - Type of goods Mode of transport (air, sea, road, rail) and proposed shipping route.
Value of Goods - Total cargo value: Including freight, duties and additional charges.
- Type of Coverage: Preferred marine insurance policy (All Risk, Named Perils, etc.) and the sum insured.
- Documentation: Commercial invoices, trade contracts and shipping-related documents like the bill of lading.
- KYC Verification: Identity proof and relevant financial documentation for regulatory compliance.
Please Note: Requirements may vary based on the nature of cargo and business operations. It’s advisable to consult a TATA AIG representative for personalised guidance before you buy marine insurance.
Types of Transportation Modes Covered Under Marine Insurance
Sea or Ocean Transport
Coverage for goods shipped via cargo vessels across international and domestic waters.
Inland Waterways
Protection for goods transported on rivers, canals, and other navigable inland routes.
Air Transport
Protection for cargo moved via air freight, including international consignments and express logistics.
Road Transport
Coverage for inland cargo transportation by trucks, trailers, and commercial road carriers.
Rail Transport
Insurance for goods transported through railway networks within the country or across borders.
Top Commodities in Marine Insurance
Marine insurance is commonly used to protect a wide range of high-value and high-volume goods in transit. These commodities are often exposed to transit risks and require tailored marine insurance coverage for smooth and secure delivery. Some of the top insured commodities include:
Electronics and machinery | Pharmaceuticals and medical supplies | Automotive parts and vehicles | Textiles and garments |
Agricultural produce and food items | Chemicals and hazardous goods | Crude oil and petroleum products | Metal and mineral shipments |
Is Marine Insurance Mandatory?
Marine cargo insurance is not legally mandatory in India for all cargo movements. However, it is strongly recommended, especially for businesses engaged in international trade or high-value shipments. Many exporters, importers and logistics partners opt for marine cargo insurance to protect against loss, damage or delays during transit by sea, air, road or rail.
Moreover, under certain international contracts like CIF (Cost, Insurance and Freight) or CIP (Carriage and Insurance Paid To), and sometimes DDP (Delivered Duty Paid) or DAP (Delivered at Place), the seller is contractually obligated to provide insurance. This makes marine insurance a business necessity, even if not a legal one.
Marine Cargo Insurance Eligibility Criteria
Any company that is involved in the business of moving goods by sea can purchase marine insurance. This includes:
Manufacturers
Buyers
Import/export merchants
Sellers
Banks
Contractors
Buying agents
Marine insurance protects goods in transit by sea and helps to mitigate the financial risks associated with potential loss or damage to the cargo.
Why Should You Buy Tata AIG’s Marine Insurance?
Presence in 130+ Countries
Operations in 130+ countries ensure compliant coverage, global expertise and fast claim response worldwide.
Trusted Global Expertise
Backed by the combined might of the TATA Group and AIG, with strong reinsurance support and a dedicated marine underwriting team.
MLCE
Our Marine Loss Control Engineering (MCLE) team helps identify risks and build effective loss prevention strategies.
Innovative Yet Simple Products
Choose from Sales Turnover, Stock Throughput or Marine Open Policies, designed for businesses of all sizes - trader, manufacturer, SME or MNC.
Tech Advantage
Our user-friendly E-marine platform allows 24x7 online certificate issuance, backed by dedicated support.
Benefits you get with TATA AIG Marine Cargo Insurance
- Automatic insurance protection
- Marine Loss Control Engineering
- Assistance in identifying potential hazards
- Cargo protection for specific voyage risks
- Multinational Cargo Transport Program
- Marine Cargo Underwriting Service
What is Covered in Marine Insurance?
Accumulation Clause
Airfreight Replacement Charges Clause
Attachment & Termination of Risk Clause
Average Clause (applicable to static risks only)
Brands Clause
Buyers Interest Clause
Cancellation Clause
Civil Authority Clause
Claused Bill of Lading Clause
Concealed Damage Clause
Debris Removal Clause
Declaration Clause
Deliberate Damage - Pollution Hazard
Duty Clause
Exhibition/Demonstration Risks Extension
Exhibition Abandonment Extension Clause
Fumigation Clause
General Average
Goods Purchased by the Assured upon "C.I. F." terms
Goods Purchased by the Assured upon "F.O.B." or "C.&F." terms or similar terms
Increased Value upon Arrival Clause
Insolvency Of Shipowners
Labels Clause
Letter of Credit Clause
No Survey Clause
On-Deck Shipments
Own Sheets & Ropes Clause
Own Vehicle Debris Removal Clause
Packing Clause
Packers Premises Extension
Pair & Sets Clause
Pollution & Contamination Exclusion Clauses
Repacking Clause
Rejected or Returned Shipments Clause
Seals Intact Clause (operative in respect of F.C.L. consignments only)
Sellers' Interest
Shortage from Containers, Trailers, and/or Vehicles Clause
Trade Marked Cartons
Testing & Sorting Clause
Theft Co-Insurance Clause
What is Not Covered in Marine Insurance?
These are some of the exclusions under the policy:
- Rust, oxidation, and/or discolouration of unpacked, unprotected, and uncrated goods, regardless of the cause.
- Electrical and/or electronic and/or mechanical derangement and/or breakdown unless caused by a peril covered by the policy.
- Unexpected disappearance and/or stock-taking losses of any kind.
- Unexpected disappearance and/or stock-taking losses of any kind from exhibition stands or locations if the exhibition stands are occupied during published opening hours.
- Theft or attempted theft from the policyholder's own vessels or premises unless it involves forcible and/or violent entry. Theft from all storage locations is excluded unless there is forcible and/or violent entry and/or exit.
- Theft attributed to collusion by employees.
- Losses or damages to the cargo due to climate or atmospheric conditions or changes in temperature cannot be covered.
- Damages caused to the goods due to changes in the water table level cannot be covered under the policy.
Under the Exhibition/Demonstration Risks Extension clause, the exclusions are:
- This insurance policy does not cover any loss or damage caused by hidden defects or poor assembly or construction of the insured property
- It also does not cover any loss or damage caused during the use of the property for demonstration or other purposes.
- Theft or pilferage from an unattended exhibition/demonstration stand/trailer is covered, except in cases of forcible and/or violent entry and/or exit.
- This policy does not cover goods that are hired out by the insured for exhibition/demonstration unless agreed upon with the underwriters before the risk coverage begins.
Types of Marine Insurance Policies
Import and Export Insurance
Cover goods transported across countries, protecting against transit damage, theft and non-delivery.
Inland Marine Insurance
Secures goods moved within the country by sea, road, rail, air or inland waterways.
Marine Cargo Insurance
Covers loss or damage to goods in transit, including during loading and unloading.
Hull Insurance
Protects the vessel itself, including machinery and equipment, from accidents, collisions or fire.
Freight Insurance
Covers freight charges lost due to cargo damage or delivery failure. Ideal for shippers and freight forwarders.
Type of Plans Under Marine Insurance Policy
Open Policy
This kind of marine insurance is ideal for businesses with frequent shipments. It covers multiple consignments over a fixed period, and the business can declare shipment values post-dispatch. Premiums are calculated on declared values.
Specific Policy
This type of marine policy suits businesses with occasional shipments. It covers only one declared consignment at a time, and details must be shared with the insurer before transit. Premiums are calculated individually per shipment.
Both types of policies cover risks such as loss or damage to the cargo, loss of freight, damage to the ship, and third-party liabilities. The policy can be extended to cover additional risks per the policy terms and conditions.
Types of Coverage Under Marine Insurance
Inland Transit Clauses (ITC)
Applies to goods transported within India by road or rail. It will not cover losses due to war, strikes, riots, or willful misconduct.
- ITC A offers comprehensive coverage against all risks except for specific exclusions.
- IITC B provides limited coverage for damage caused by fire, collision, derailment, overturning, or other accidental events.
International Cargo Clauses (ICC)
Applies to goods transported internationally by sea or air. It will not cover losses due to war, strikes, riots, or willful misconduct.
- ICC A offers the broadest coverage for overseas shipments, protecting against all risks unless specifically excluded.
- ICC B offers restricted cover and applies only to losses from incidents like fire, explosion, sinking or stranding.
In both types of coverage, there are specific exclusions that are not covered by the policy, such as losses due to war, strikes, riots, or wilful misconduct.
Types of Marine Insurance Policy According To Geographical Classification
International Marine Insurance
Covers cargo transported across international borders. It is ideal for exporters, importers and global logistics providers.
Domestic Marine Insurance
Provides coverage for goods transported within India via sea, road, rail, air or inland waterways.
Marine Insurance Act, 1963
The Marine Insurance Act of 1963 is the primary legislation governing marine insurance contracts in India. It establishes a uniform legal framework for the formation, content and enforcement of marine insurance policies.
The Act defines marine insurance, outlines the rights and duties of insurers and insured parties, and provides guidelines for premium payments, claim settlements, subrogation and assignment of rights. It also details the procedure for resolving disputes.
Key provisions cover losses due to perils of the sea, piracy and other maritime risks. The Act further regulates marine insurers and agents, ensuring transparency and fairness in the marine insurance sector under the oversight of the Insurance Regulatory and Development Authority of India (IRDAI).
What Does the Institute Cargo Clauses (ICC) Cover?
For international marine cargo insurance, coverage is categorised under Institute Cargo Clauses (A, B and C), each offering a different level of protection:
- ICC (A), known as All Risks cover, offers the **broadest protection**, covering all accidental losses or damages unless specifically excluded.
- ICC (B) offers **medium-level coverage**, including everything in ICC (C) plus losses due to earthquakes, volcanic eruptions, lightning, water ingress and packages lost overboard.
- ICC (C) provides **basic protection**, covering losses caused by fire, explosion, vessel grounding or capsizing, land vehicle overturning, collisions, discharge at port of distress, jettison and general average sacrifice.
These marine insurance clauses help businesses select appropriate coverage based on the nature, value and transit risks of their cargo. The broader the clause (A > B > C), the higher the premium and the greater the risk protection.
Factors that Determine the Marine Insurance Premium
Nature and Type of Goods
High-value items, such as perishable goods or hazardous chemicals, attract higher premiums due to their susceptibility to damage and lower recoverability.
Mode of Transport & Shipping Route
Whether cargo moves by sea, air, rail or road affects risk levels. Routes prone to piracy, adverse weather or geopolitical instability often carry higher premiums.
Type and Extent of Coverage
A comprehensive All Risk policy will be more expensive than a basic named-perils cover. Deductibles and additional protections also impact pricing.
Frequency of Shipment
One-time shipments compared to regular transit contracts or annual covers can significantly influence marine insurance premiums.
Safety Measures & Risk Assessment
Use of safety devices, secure packaging and adherence to regulatory standards may reduce premiums, as they lower the likelihood of loss or damage.
Claim History
Businesses with a strong claims record may benefit from lower premiums, while frequent past claims could result in higher costs.
How is the Premium calculated for Marine Cargo Insurance?
The premium for marine cargo insurance is calculated based on a percentage of the total insured value, which includes the cost of goods, freight charges and applicable duties or taxes. This base rate is then adjusted depending on:
Insurers may also consider historical claim data and risk mitigation measures before finalising the premium. TATA AIG offers easy online marine insurance calculation. Just enter your cargo and transit details to get started.
Type of insurance cover (All Risk vs Specific Risk)
Nature and value of goods
Mode and route of transport
Type and age of the vessel (for water transport)
Trading limits (maximum amount of coverage provided for the goods)
Add-on covers opted for
Marine Insurance Claim Process
The assured and their agents should do what they can to prevent or lessen any damage or loss to their goods. They should also make sure to use their legal rights against anyone responsible for any problems.
This is how the claim procedure works:
Inform TATA AIG and the carriers, port authorities, and bailees responsible for shipping if any packages are missing.
Go to our claims page, click “Initiate a Claim”, and select Marine. Enter your policy number, the policy start date and the date of loss. Click Confirm.
Proceed to provide further information and upload any required documentation to verify your claim and await confirmation.
A surveyor will investigate the circumstance and cause of damage, assess the extent of loss and prepare a report.
Based on the surveyor’s report and marine insurance policy conditions, the claim will be processed and settled considering the policy conditions.
If the goods appear damaged, do not accept them until you can provide written confirmation.
If the goods are delivered in a container, the responsible official should immediately check the container and the seals.
If the seals are broken or missing, they must mention this on the delivery form and keep any broken seals aside for later.
If there is any apparent damage or loss, the official should ask the shipping company to examine it and then file a claim for the damage or loss.
If damage or loss is found later, the shipping company should be informed in writing within 3 days of receiving the goods.
The consignees should familiarise themselves with the port's rules where the goods are being delivered.
Documents Required to Raise Claim Under Marine Insurance
Given below are the documents needed to file a claim under marine insurance:
Original policy or marine insurance certificate
Original Bill of Lading and/or another contract of carriage.
Original copy of shipping invoices, with the packing list and/or weighment notes.
Landing remarks/account and weighment notes at the final destination
The survey report and other documentary evidence, if available, show the extent of the loss or damage.
Correspondence exchanged with the carriers and other parties regarding their liability for the loss or damage.
To enable claims to be dealt with promptly, the assured or their agents are advised to submit all the supporting documents without delay, including the items mentioned above.
Frequently Asked Question
