Marine Insurance—What is the first thought that comes to your mind when you hear this word? You might think that it is an insurance policy which covers transportation carried out through water, right? However, it is not right! In fact, it is one of the biggest myths according to which most of the people assume that marine insurance is limited to water or ocean transport only.
But what if we told you, the truth is different? In reality, marine insurance is a comprehensive cover that not only includes water transport but also includes other modes of transportation as well, including rail and road. Further, marine insurance also covers domestic transportation and warehouse storage as well. It means, goods which are being kept in the warehouse are also covered under marine insurance.
In short, a marine insurance policy offers coverage when goods are transported through any of the below modes:
- Road or Rail
- Registered Post Parcel
Or the combination of the above
You can customise Marine Insurance as Per Your Needs
Currently, there are various marine insurance companies in India which allow businesses to customise their insurance policies. It means, as per the risks prevalent in your business, you can buy a marine insurance policy and then customised it to suit your business needs.
Types of Marine Insurance Policies
Below are some of the types of marine insurance policies which are available in the market:
- Export & Import Insurance: It is an important insurance policy which covers shipments which are either indulged in exporting or importing of goods. The insurer offers cover notes to companies who buy export & import insurance. This cover note enjoys acceptance throughout the world as proof of insurance.
- Inland Transit: As the name itself suggests, inland transit insurance covers those consignments which are travelling within India through any mode of transport. Further, the policy covers warehouse storage for a limited duration also. Under inland transit policy, covers only those goods which are being transported via land only. Usually, it doesn’t include sea and aerial modes of transportation.
- Marine Hull: Offering coverage to large vessels, this insurance policy provides cover to ships and boats against a myriad of risks. Mainly, it is the insurance policy which covers the vessel.
- Specific Transit: This insurance policy covers goods in transit for a particular journey only. At the time of issuing the policy, the insurance company clearly mentions the start and end destination along with dates of the voyage. Generally, the cover for such journeys is issued only a few hours before the transit. Moreover, the premiums are also affordable.
As clearly stated above, a marine insurance policy offers wide coverage against different types of risks, and therefore, we can conclude that marine insurance is not restricted to water transport only. It means you can opt for a marine insurance policy even if you are transporting goods by air or road.
Similarly, on the basis of how frequently you need marine insurance, you can choose the right structure for your policy, which can be anyone from the following:
- Annual Turnover Policy: It offers coverage for transportation of raw materials, finished and semi-finished goods which are related to the trade of a policyholder.
- Specific Voyage: It covers a particular voyage only.
- Open Policy: The value of the cargo and consignment doesn’t include in the insurance policy document.
It is in the interest of your business that you choose the right kind of marine insurance policy. Moreover, it is necessary to get rid of the myth which says that marine insurance is restricted to water transport only. Having a complete understanding of the policy is necessary to make the right selection.
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