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Understanding Marine Insurance: Inland Transit vs. Marine Cargo Insurance

Posted on 16 Nov, 2023
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Marine insurance is a crucial component of the global trade and shipping industry, providing protection against the various risks and uncertainties associated with the transportation of goods. Two common types of marine insurance are Inland Transit Insurance and Marine Cargo Insurance. In this blog, we will explore the key differences between these two types of insurance, shedding light on their unique characteristics, purposes, and benefits.

Marine Cargo Insurance

Inland Transit Insurance

Inland Transit Insurance, often referred to as Inland Marine Insurance, is a specialized insurance coverage that covers the transportation of goods within a country or region, typically by land or waterways. This type of coverage is designed to protect goods during their journey from the point of origin to the destination within the same country. Here are some key features of Inland Transit Insurance:

Coverage Scope:

Inland Transit Insurance covers goods while they are in transit, whether by road, rail, river, or even through pipelines within the specified geographical area.

It safeguards against various risks, including theft, damage, accidents, and natural disasters, which can occur during transportation.

Geographic Limitations:

This coverage typically applies to domestic or landlocked regions, focusing on the transportation within a country's borders.

It is ideal for businesses involved in domestic trade and logistics.

Types of Cargo:

Inland Transit Insurance can cover a wide range of cargo, from raw materials to finished products, machinery, and more.

It is suitable for businesses involved in various industries, such as manufacturing, distribution, and retail.

Coverage Flexibility:

Coverages can be tailored to suit the specific needs of the insured party, allowing for customization in coverage and limits.

Marine Cargo Insurance

Marine Cargo Insurance, on the other hand, is a broader insurance coverage that provides protection for goods during their entire journey, which can involve multiple modes of transportation and international borders. It is primarily designed to protect cargo owners, importers, exporters, and carriers against the risks associated with global trade. Let's delve into the distinctive features of Marine Cargo Insurance:

Coverage Scope:

Marine Cargo Insurance covers goods throughout their journey, encompassing not only inland transit but also ocean voyages, air freight, and intermodal transport.

It provides protection against a wide array of perils, including shipwrecks, piracy, rough weather, and other maritime hazards.

Geographic Extent:

This coverage is not confined to a specific country or region; it offers global coverage for goods in transit across international borders.

It is essential for businesses engaged in import/export activities and international trade.

Types of Cargo:

Marine Cargo Insurance caters to a diverse range of cargo, from commodities and perishables to high-value goods and hazardous materials.

It serves the needs of businesses involved in global trade and shipping.

Coverage Flexibility:

Coverages can be adapted to meet the unique requirements of the insured, offering various options for coverage, deductibles, and terms.

Key Differences

Geographic Coverage:

Inland Transit Insurance covers goods transported within a single country or region, while Marine Cargo Insurance provides coverage for goods in transit globally.

Modes of Transportation:

Inland Transit Insurance is limited to land and waterway transport within a country, whereas Marine Cargo Insurance encompasses all modes of transportation, including sea, air, and land.


Inland Transit Insurance is suitable for businesses engaged in domestic trade and transportation, while Marine Cargo Insurance is essential for international trade and shipping companies.

Perils Covered:

Inland Transit Insurance typically covers risks associated with domestic transportation, such as accidents and theft, whereas Marine Cargo Insurance extends coverage to maritime perils like shipwrecks, piracy, and weather-related damage.

Coverage Customization:

Both types of coverage allow for customization, but Marine Cargo Insurance offers more extensive options due to its broader scope and international nature.


In conclusion, while both Inland Transit Insurance and Marine Cargo Insurance serve the essential purpose of protecting goods during transportation, they cater to different needs and scenarios within the vast realm of marine insurance. Inland Transit Insurance is tailored for domestic transport within a specific country or region, while Marine Cargo Insurance provides extensive coverage for goods traversing international borders and multiple modes of transportation. Understanding the distinctions between these two types of insurance is crucial for businesses involved in trade and logistics to ensure adequate protection for their valuable cargo in an ever-evolving global marketplace.

Businesses can turn to trusted insurance providers like ICICI Lombard to secure these vital insurance coverages. They offer a wide range of insurance solutions, including Inland Transit Insurance and Marine Cargo Insurance, to meet the diverse needs of businesses engaged in trade and shipping. Choosing the right insurance partner like ICICI Lombard can provide the peace of mind and financial security necessary to thrive in the dynamic global marketplace.

  • Marine Insurance
  • Product Code: 2005
  • Product UIN: IRDAN115P0011V01200102

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This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). (Marine Insurance, 4010 , IRDAN115P0010V01200607)