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Marine Transit Insurance

What is marine transit insurance?

Marine transit insurance, also known as marine cargo insurance, provides financial protection in case your goods suffer any damages - man-made or natural - during transit. Marine insurance covers goods between points of origin to the final destination across all means - roads, railways, air, and sea, etc.

Marine transit insurance covers loss during transit suffered by your cargo caused due to fire, explosions, hijacks, accidents, collisions, overturning, theft, weather events, etc. You can choose a specific coverage based on your business requirement.

How Does ICICI Lombard Marine Insurance Work

How marine transit insurance works?

The working mechanism of a marine transit insurance policy is simple. When you buy marine insurance, the financial liability for potential damages is on the insurance provider. In case of losses, you inform the insurance company, which will appoint a surveyor to analyse the quantum of loss. Based on the surveyor's assessment, the insurer will offer compensation.

Thus, marine transit insurance gives you peace of mind as you've a financial cushion to fall back on if your cargo suffers any damage.

Types of Marine Transit Insurance

The different types of insurance are as follows:

  • Inland: Provides coverage for goods within India
  • Import: Provides coverage for goods transported from a foreign country to India
  • Export: Provides coverage for goods transported from India to a foreign country

Coverage provided by marine insurance

The coverage provided by this policy entails compensation against common risks that a cargo is subjected to during transit. This includes coverage in the event of:

  • Fire explosion and lightning
  • Earthquake or volcanic eruptions
  • Collision between vehicles
  • Overturning or derailment of vehicle
  • Damages suffered during loading and unloading
  • Theft or malicious damage
  • Hijack of goods
  • Other risks unless specifically excluded
Who Can Buy Transit Insurance Online?

Benefits of ICICI Lombard’s Marine Single Transit Insurance

What is covered under marine transit insurance?

Marine insurance offers coverage in the event your cargo suffers damages due to:

  • Fire, lightning or explosion
  • Derailment or overturning of vehicle
  • Volcanic eruption or earthquake
  • Collision between vehicles
  • Loss / Damage to goods during loading and unloading
  • Loss / Damage to goods during handling during transit
  • Losses caused by river or lake water entering cargo
  • Theft or malicious damage
  • Hijack of goods
  • Shortage or non-delivery of goods

Along with these risks, a marine cargo insurance plan also offers coverage against risks not specifically excluded in the policy schedule. While the all-risk marine cargo insurance provides coverage against all risks mentioned above. Marine basic insurance excludes risks such as hijacking of goods, theft or malicious damage, and loss of goods during loading and unloading, among others. Read marine insurance's fine print to be aware of the conditions under which you will get coverage.

Why do you need marine transit insurance?

You need a marine transit insurance policy:


To safeguard against transit risks faced by your cargo

Your cargo in transit can be of immense value. Its damage can have grave financial consequences on your business. Despite the best preventive measures, your cargo can fall prey to various perils, such as:

  • Fire, explosion, lightning, earthquake and volcanic eruptions
  • Theft and hijack of goods
  • Collision of vehicles
  • Overturning and derailment of vehicle
  • Loss during loading and unloading of goods

In the case of such unfortunate events, marine insurance offers a payout that helps you minimize the financial losses arising from cargo damage.


To facilitate trade

Several national and international trade agreements warrant marine transit insurance. Having proper coverage demonstrates your financial responsibility. This can unlock business opportunities and partnerships and make trade finance more affordable.


For business continuity

If cargo is lost or damaged, financial recovery can be slow. With marine transit insurance, your business can bounce back faster by minimizing downtime and recovering the losses.

Marine insurance price

How to buy marine transit insurance from ICICI Lombard?

To buy marine transit insurance online with ICICI Lombard follow these step:

  • Choose here the type of marine transit insurance you want to purchase
  • Provide your mobile number, pin code, email ID and the name of your company
  • Click on ‘Proceed To Buy’
  • Follow the steps and instructions on the page after clicking “Proceed to Buy” to buy marine insurance

Who can buy transit insurance online?

The following persons can buy transit insurance online:

  • Exporters
  • Importers
  • Manufacturers
  • Traders
  • Logistics operators
  • Merchant exporters
  • C&F agents

Note: This list isn't comprehensive, as there could be additional parties with interests in securing marine transit insurance.

Who Can Buy Transit Insurance Online?
Legal Requirements for Marine Transit Insurance

Legal requirements for marine transit insurance

Now that you know the importance of marine transit insurance, let’s look at the legal requirements for this policy:


Insurable interest: You need to demonstrate a financial stake in the cargo being insured.


Vehicle ownership: Your vehicle must have valid documentation and registration.


Vessel type: The type of vessel determines the coverage required and the premium payable.


Vehicle purpose: The insurer would want to know if the vehicle is used for commercial or personal purposes. Commercial vehicles require a more holistic coverage due to the higher risk involved.


Compliance with safety regulations:The vehicle must comply with all the safety regulations set by the authorities, including having safety equipment on board.

Frequently asked questions - marine single transit insurance

  • General
  • Cover
  • Claims
  • Policy

What are the types of marine cargo insurance covers available?

Following types of cover are available:

For Import and Export Transits:

  • Institute Cargo Clause – A (All Risk)
  • Institute Cargo Clause – B (Named Perils/ Basic Cover)

For Inland (Transit within India):

  • Inland Transit Clause – A (All Risk)
  • Inland Transit Clause – B (Named Perils/ Basic Cover)

What are the perils covered in A (All Risk) or B (Named Perils / Basic Cover)?

Risk All Risk Basic
Fire, Lightening or Explosion Yes Yes
Overturning or derailment of vehicle Yes Yes
Earthquake or Volcanic Eruption during transit Yes Yes
Collision between 2 Vehicles Yes Yes
River or lake water entering cargo Yes Yes
Damage/Loss to goods during loading & unloading Yes No
Damage/Loss to goods during handling of goods in transit Yes No
Theft or malicious damage Yes No
Shortage or non-delivery of goods Yes No
Hijack of goods Yes No
Any other risk not specifically excluded Yes No

What are INCO terms?

They determine the point of change of responsibility between the buyer and seller. Incoterms inform sales contracts defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer.

Some commonly used Inco Terms:

Ex Works (EXW): Seller has to place the goods at the disposal of the buyer. Carriage and Insurance are arranged by buyer.

Free On Board (FOB): Seller delivers when the goods pass the ship’s rail at the named port of shipment. This means the buyer has to bear all costs &risks to the goods from that point.

Cost, Insurance, Freight (CIF): The seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the cost & freight necessary to bring goods to the named port of destination, but the risk is transferred from seller to buyer.

Other INCO Terms used in the market :

Rules for Any Mode (or modes) of Transport

  • CIP - Carriage and Insurance Paid
  • CPT - Carriage Paid To
  • DAP - Delivered At Place
  • DAT - Delivered At Terminal
  • DDP - Delivered Duty Paid
  • EXW - Ex Works
  • FCA - Free Carrier

Rules for Sea and Inland Waterway Transport Only

  • CFR - Cost and Freight
  • CIF - Cost, Insurance and Freight
  • FAS - Free Alongside Ship
  • FOB - Free On Board

Note: New Incoterms 2020 has been published recently.

What are the risks specifically excluded from marine insurance?

  • Wilful Misconduct of the Assured
  • Ordinary leakage, ordinary loss in weight or volume or ordinary wear and tear of the subject-matter insured
  • Insufficiency or unsuitability of packing
  • Inherent vice or nature of the subject-matter insured
  • Delay
  • Insolvency or financial default of owner, manager, charters or operators of the vessel
  • Unfitness/ Unseaworthiness of carrying conveyance

What are common warranties, conditions and exclusions*?

Below are some general conditions or warranties attached to a marine insurance policy:

  • Rusting, oxidation, discoloration and corrosion are excluded unless caused by ICC(B) perils
  • Institute Replacement clause
  • Pair and set clause
  • Second hand Replacement clause
  • Excluding Mechanical, Electrical and Electronic derangement unless caused by ICC (B)/ITC (B) perils.
  • Over Dimensional Cargo Survey Warranty.
  • Warranted that losses due to adulteration, contamination and deterioration of quality is excluded.
  • Warranted that goods are transported in closed wagons and/or trucks to be covered with tarpaulin or any other water proof material to avoid ingress of water.
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What is marine cargo/transit insurance?

Marine Cargo insurance / Transit Insurance covers the loss or damage of cargo / goods in ordinary course of transit between the points of origin and the final destination.

Marine insurance covers Movement of goods from one place to another:

  • Within the country(Inland)
  • From India to Country outside India(Export)
  • From Country outside India to India(Import)

Who can buy marine/transit cargo insurance?

Any person with insurable interest in the goods in transit can insure. Further the policy can be assigned freely to any person who acquires insurable interest during transit of the cargo.

  • Exporters
  • Importers
  • Manufacturers
  • Traders
  • Merchant Exporters
  • Contractors of Projects
  • Logistics Operators
  • C&F Agents

What are the types of cargo that can be covered in marine cargo insurance?

The types of cargo / Commodities* are:

  • General Cargo: Ex. Furniture, Spare Parts, footwear, Electronic items, food items, textiles etc.
  • Metals: Plastic, Iron and Steel Rolls, Leather
  • Machinery: Ex. Standard size in Containers. Oversize in Bulk or Open Top containers
  • Liquid Bulk Cargo: Ex. Crude Oil, Edible Oil, etc.
  • Dry Bulk Cargo : Ex. Coal, grain, ore and other similar products in loose form

*Above commodities / Cargo can be covered depending on the risk involved in it.

What is per sending limit?

Per Sending limit represents the maximum sum insured amount that in the event of a claim of any one consignment or shipment whilst the goods are in ordinary course of transit.

What is sum insured?

Sum insured is the total value of the goods in transit including freight, taxes and any other port handling charges. This is the maximum amount which is payable in the event of a total loss of the insured cargo.

The sum insured will comprise of the following:

  • Cost of the goods either on (CIF)/FOB/C & F (Depending on the INCO term)
  • Clearing charges and internal freight
  • Customs Duty

What does perils of the sea means?

Perils of the seas” means fortuitous accidents or casualties of the seas, but does not include ordinary action of the wind and waves.

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What are the types of Marine claims?

Partial Loss (Particular Average) : Particular Average means partial loss of the subject matter insured although not appearing in the Clauses directly, all three sets of ICC covers particular average in full.

Total Loss : The goods are completely destroyed. The assured is irretrievably deprived of the goods. The goods are no longer the thing insured (loss of specie). The goods are on a ship that has been posted as missing. Total loss can be an Actual Total Loss or Constructive Total Loss.

General Average (GA) : This occurs when the insured goods are partly or totally sacrificed in a general Average act. Provided the GA does not arise from any of the exclusions expressed in the Clauses, the underwriter is liable for the sum insured if the sacrifice results in a total loss of the goods or the proportion of the sum insured produced by applying the percentage of depreciation caused by the sacrifice to the SI, if only part of the goods is sacrificed.

What is general average?

GA is a sacrifice or expenditure made or incurred by one of the parties to the maritime adventure for the purpose of saving all of the property insured in such maritime adventure”. All loss which arises in consequence of extraordinary sacrifice made or expenses incurred for the preservation of the ship and cargo comes within general average and must be borne proportionately by all who are interested)

What are the documents required to lodge a claim?

  • Invoice copy
  • LR copy
  • Final Repair Bill
  • Photographs (In case of damage claim)
  • Repair Estimate (If repairable) claim and original AD
  • Shortage Certificate (In case of shortage)
  • FIR copy
  • Driving License, RC Book of transporters Vehicle
  • Salvage Bill
  • Discharge voucher

Is it possible to add coverage for perishable or high-value cargo to the policy?

Yes, you can do so. However, in such cases, you need to pay a high premium.

How long does it typically take to settle a claim?

On most occasions, claims are settled within 30 days.

How do I initiate a claim for my cargo under the marine transit insurance policy?

To initiate a claim:

  • Notify the insurer immediately and share the required documents. Find out about the various channels through which you can notify about the claim.
  • A surveyor appointed by the insurer will examine the documents, verify the claim's authenticity as per the marine transit insurance policy's terms and conditions and submit the report to the insurer.
  • Following the assessment, the insurer will process your claim.

What is the deadline or time frame for filing a claim after an accident occurs during transit?

Ideally, you should file a claim immediately. That said, the deadline varies across insurance companies and can range from a month to a year.

Can I track the progress of my claim once it's been filed?

Yes, you can track the claim's progress on WhatsApp or other channels such as email.

Are there any specific conditions or criteria that must be met for a claim to be valid?

Your claim must fulfil the marine transit insurance policy's terms and conditions to be valid. If it doesn't, the insurer can reject it.

What happens if my cargo is partially damaged during transit? Can I still file a claim?

Yes, you can still file a claim if your cargo is partially damaged.

How Long Does it Usually Take to Receive Compensation Once a Claim is Approved?

Receiving compensation post-claim approval can take between 10 to 30 days.

What are the specific types of cargo or goods that are excluded from coverage under this policy?

Goods that are hazardous in nature or perishable can be excluded from coverage under marine insurance.

What are the exclusion criteria for goods that are considered high-risk or hazardous during transit?

Goods that may endanger the safety of vehicles or persons on board are excluded from coverage during transit.

Are losses or damages due to improper packaging or handling excluded from coverage?

Yes, losses arising due to improper packaging are excluded from coverage.

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What are the types of marine/ transit cargo policies?

Marine Single Transit Policy

  • Covers single consignment from one location/port to another location/port.
  • It is suitable for those firms who seldom require marine cargo policies in the course of their trade.

Marine Open Declaration Policy: (MOP)

  • MOP is an annual arrangement between the insured and the insurer to provide coverage to all the shipments/transits on pre-arranged terms and conditions for a particular leg (Domestic/Import/Export).
  • Open inland policy is a declaration based policy where insured has to make periodic declaration (Monthly) of sum insured utilization.
  • Certificates are issued for individual transits and are treated as sum insured utilization for open import/export policy.
  • Insurer’s maximum liability is restricted to a pre agreed limit per sending and limit per location.
  • Policy period of one year at an initial Sum Insured which can be enhanced during the duration of the policy.

Sales Turnover Policy:

  • It’s a wider form of Marine Open Policy and is issued on the basis of annual sales turnover – both domestic and exports, all transits/voyages deemed to be held covered without specific declaration. (Import, Export or Inland)
  • Sum Insured and premium is based on the estimated annual Sales Turnover of goods movement under various legs of transit.
  • Certificates are issued for individual transits.

What information does the insurer need to provide quotation?

  • Basic Client Information
  • Type of Cover (All risk (A) or basic coverage (B))
  • Policy Duration
  • Nature of Commodity and its description
  • Value of cargo (Sum Insured)
  • Custom Duty (In case of Import)
  • Packing Description
  • Mode of Conveyance (Sea, Air, Rail, Road or Courier)
  • Claim Experience
  • Basis of Valuation
  • Per Sending and Per Location Limit

What are the factors that you should consider while buying marine transit (cargo) insurance?

Some key factors you should consider while buying marine transit insurance are:

  • Type of goods: High-value or fragile items may require exhaustive coverage.
  • Mode of transportation: Different modes of transport pose varying risks, which may affect the type and extent of coverage needed.
  • Insurance limits: Know the limits of coverage provided by marine insurance, including maximum liability amounts and any exclusions that may apply.
  • Premium costs: Compare premium rates from different insurers to ensure you are getting competitive pricing. However, don't solely base your decision on price — consider the value and scope of coverage offered.

How is the premium for transit insurance calculated?

Premium rates vary depending on the type of goods or commodity to transport. High-value goods have higher rates. It can also depend on the mode of transportation, transport to and from location and the sum insured.

How does marine transit insurance protect against unforeseen events during shipment?

A marine transit insurance policy offers a financial cushion if your cargo suffers any damages during transit. The monetary compensation allows you to recover your losses.

How does marine transport insurance protect against unforeseen events during shipment?

You can avail this service for a maximum of four times. You would be able to claim only for the services opted by you at the time of policy issuance.

How can I get a quote for marine transit insurance tailored to my business needs?

You can get a quote online. Most insurers have this facility whereby you enter the details, including the type of cargo, sum insured needed, etc., and will receive the quote based on your inputs.

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Product Product Code UIN no.
Marine transit insurance (inland) 2005 IRDAN115RP0011V01200102
Marine export-import insurance 2006/I, 2006/E IRDAN115CP0008V01201920

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