MARINE CARGO – TRANSIT INSURANCE

Marine Insurance is important because of the below mentioned reasons:

• Financial Protection:

  Marine insurance provides coverage for potential financial losses arising from damage or loss of goods during transit.

• Risk Mitigation:

  It helps mitigate the risks associated with unforeseen events like accidents, theft, or natural disasters during the transportation of goods.

• Business Continuity:

  With marine insurance, businesses ensure the continuity of their operations by safeguarding against disruptions caused by cargo-related uncertainties.

• Compliance Requirement:

  Some trade transactions and agreements may necessitate the inclusion of marine insurance, ensuring compliance with contractual obligations.

• Peace of Mind:

  Business owner gain peace of mind knowing that their goods are protected, fostering confidence in international trade transactions.

• Supplier and Customer Relations:

  Having marine insurance can enhance relationships with suppliers and customers by demonstrating a commitment to secure and reliable trade practices.

• Customs and Regulatory Compliance:

  Certain customs authorities may require proof of insurance for imported goods, making it a crucial aspect of regulatory compliance.

• Risk Distribution:

  Marine insurance allows for the distribution of risks among various parties involved in the supply chain, minimizing the impact on any single entity.

• Trade Facilitation:

  It facilitates smoother trade transactions by providing a safety net for both importers and exporters, encouraging international commerce.

• Global Competitiveness:

  Businesses with import/export marine insurance are often more competitive in the global market, as it reflects a commitment to responsible and secure trade practices.

There are two categories of marine insurance clauses outlined below:

1. ITC Inland Transit Clauses:

ITC stands for Inland Transit Clauses and is designed for inland transits within India's borders. ITC-A provides coverage for all damages except rainwater damage, while ITC-B covers only accidental damages. This clause is exclusively applicable to inland transits.

2. International Cargo Clauses:

ICC stands for International Cargo Clauses. ICC-A covers all damages except those caused by rainwater, while ICC-B provides coverage for accidental damages. This clause is relevant to both import and export activities.

Let's see what is not included in the case of loss or damage that can be reasonably attributed to:

• Loss, damage, or expenses due to the assured's intentional wrongdoing.
• Common or unavoidable losses.
• Loss, damage, or expenses caused by the inherent nature of the insured subject.
• Loss or damage resulting from insufficient, inappropriate, or faulty packing (including stowage).
• Loss, damage, or expenses directly caused by delays, even if caused by an insured peril.
• Loss or damage arising from insolvency.
• Loss or damage due to the unseaworthiness of the vessel, craft, container, or lift van used for transporting the insured goods.
• Wars, strikes, and civil unrest, unless covered separately through endorsements.

*Please Note: Above list is indicative, kindly refer policy terms and conditions for detailed exclusions

Follow these steps to lodge a claim under marine insurance policy:

Step 1:Notification to Insurer: Promptly inform the insurer on occurrence of the loss.
Step 2:The insurer provides a claim reference number and surveyor details if appointed, or/and Letter of Requirement (LOR) is issued for further claim processing.
Step 3:Submission of Documents: Submit necessary claim-related documents as per the LOR.
Step 4:Documents Verification: The surveyor/insurer examines the submitted documents and informs about any pending requirements. Upon verification, if all documents are satisfactory, the insurer/surveyor assesses the reported claim based on marine insurance policy terms and conditions.
Step 5:Claim Approval: Upon assessing the loss, the insurer seeks consent from the insured and requests NEFT details for payment processing, along with any additional documents, if required.
Step 6: Claim Settlement: Once the insurer transfers the claim payment via NEFT, it reflects in the insured's account within 3-4 working days.

In conclusion, marine insurance plays a pivotal role in safeguarding cargo during transit via sea, air, post, courier, road, and rail. By providing financial protection against potential risks and damages, it ensures the smooth flow of trade, mitigates uncertainties, and fosters confidence in import/export/inland transactions. Whether facing challenges in the sky, in the sea, on the road, or along the tracks, marine insurance serves as a reliable shield, offering peace of mind to businesses engaged in importing goods. Its significance lies in fortifying operations, securing investments, and facilitating a resilient and thriving global trade environment.