What is Marine Insurance?
Marine insurance is a specialized form of coverage designed specifically for ships, cargo, and associated liabilities that may arise during maritime transport. It typically protects against risks involved in sea transportation, including vessel damage, cargo loss, third-party liability for injuries or damages, as well as hazards like piracy, storms, and collisions.
This type of business insurance is vital for businesses engaged in international trade, helping safeguard against potential financial
losses during transit.
Comprehensive Benefits of Marine Insurance
Cargo ProtectionCovers losses and damages to goods during transit by sea, air or land.
Global CoverageProtect your goods across international borders and jurisdictions.
Customisable PoliciesFlexible coverage options designed to meet your specific business needs—whether for one-time shipments or ongoing trade.
Risk MitigationMinimizes losses from unforeseen events like storms, theft or fire.
Legal LiabilityCovers legal claims if the business is held liable for any damages during transit.
Types of Marine Insurance Coverages
Cargo
Logistics
Marine Hull
Liability
Fine Art & Specie
What’s Covered & Not Covered under Marine Insurance
- Loss or Damage to Cargo
- Damage to Vessel (Hull & Machinery Insurance)
- Third-Party Liability
- Loss of freight charges if cargo is lost or damaged
- Damage caused by poor or insufficient packaging of goods
- Financial losses due to delays in transit
- Consequential losses such as loss of profits or economic losses from the damage or loss of cargo
- Losses from shipping to banned countries may not be covered, as these shipments might be illegal or not allowed by the policy.
Main Clauses in Marine Insurance
In marine insurance, the principal clauses known as the Institute Cargo Clauses A, B, and C outline the risks that are covered when goods are transported by sea, and they often apply to multimodal transport as well. These clauses serve as the foundation of the insurance policy, and the specific clause selected dictates the level of protection provided to the cargo owner. Here’s a typical application of these clauses:
| Clause | Coverage Level | Typically Used For | Key Exclusions |
|---|---|---|---|
| ICCC(A) | Maximum(All Risks) | High-value or sensitive goods, professionally packed | War, strikes, delay, inherent vice (unless specifically added) |
| ICCC(B) | Moderate | Less sensitive cargo, or when A is too expensive | Theft, freshwater damage, contamination |
| ICCC(C) | Basic | Bulk cargo, low-value goods, or when minimum insurance is needed | Everything B excludes, plus overboard loss, let damage, natural disasters |
Frequently Asked Questions
about Marine Insurance
Is it required to have Marine Insurance?
Although not legally required, marine insurance is often treated as essential. For instance, shipping companies or trade partners may require it to safeguard against losses or damages during transit.
How is the premium calculated?
Premiums are calculated based on the cargo value, route, packaging and other risk factors involved.
Can marine insurance cover international shipments?
Yes, if your coverage includes international trade which covers goods transported across countries and borders.
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