A Guide on Marine Cargo Insurance

The freight in transit is highly exposed to the risk of loss or damage due to uncertain events. Here, marine cargo insurance comes into the picture. Marine cargo insurance is a type of property insurance that covers the risk of loss/damage caused to the goods in transit (between the point of origin and destination).

Marine Cargo Insurance can be taken for ongoing business where goods are transported on regular basis or for specific cargo transportation. If it is a regular business then each transportation needs to be recorded with the invoice number, vehicle details, etc. These records need to be submitted to the Insurance Company on a regular basis.

Coverage of Marine Cargo Insurance

The marine cargo insurance covers the following risks:

1. Fire, explosion, sinking and stranding during the cargo journey
2. Natural calamities like earthquakes or lightning.
3. Collision, overturning, or derailment of land conveyance
4. Jettison and washing overboard

Exclusions of Marine Cargo Insurance

1. Damage due to inadequate packaging
2. Damage due to faulty products inside the cargo
3. Damage/ due to deliberate attempt to get the claim amount.
4. Damage/loss due to strikes, riots, civil commotion
5. Ordinary wear and tear
6. Loss/ damage occurs due to insolvency or bankruptcy.
7. Does not cover freight like hazardous materials, highly valuable goods, fragile goods and certain electronic products.

Read the policy document carefully as there can be more coverage and exclusions of the policy.

Claim Process of Marine Cargo Insurance

1. File an FIR in case of an accident/ missing package. Take photographs from different angles.
2. Intimate the insurance company about the loss. Submit the claim form along with the necessary documents to them.
3. Ask for a surveyor’s visit for an inspection of the incident and ascertain the extent of loss suffered.
4. Wait for the claim settlement.

Documents Required for Claim Process

1. Copy of policy document
2. FIR Report
3. Survey Report
4. Quotations estimate
5. Damage certificate
6. Notice of loss letter
7. Claim form
8. Original invoice list together with shipping specification
9. Copy of billing lading
10. Copy of letter exchanged with the carriers

It must be noted that all the necessary steps must be taken to protect the insured items from damage/loss.

If your genuine cargo insurance claim settlement process gets delayed, you must contact your insurance company to know the reason for the delay. If you are unable to get your genuine claim money, you can contact Insurance Samadhan.*

Read How Insurance Samadhan Resolved the Case of Cargo Insurance Claim Process Delay

A company has taken a marine cargo insurance policy for its consignment. The consignment (cargo) was in a truck for transportation. The truck met with an accident on Agra Highways. The truck driver died on the spot and the consignment was damaged.

The company’s representative lodged an FIR and intimated the insurer about the incident. He submitted the claim form along with the necessary documents to the insurer.

The insurer’s surveyor conducted an inspection of the incident and ascertained the extent of loss suffered.

The company was expecting that the insurer would soon pay the claim amount. However, the company did not receive the claim money. The representative of the company tried to raise the company’s complaint, but he did not receive a proper response.

The company’s representative approached Insurance Samadhan for the case. After verifying the details of the case, we accepted it as it was a genuine case of delay in claim settlement. We guided the company on how to approach the company. The case was resolved within a month.

If you face any problem related to insurance, you can contact Insurance Samadhan. We have helped resolve 14,500+ complaints related to insurance. We’ll be happy to help you.

* Insurance Samadhan is a private organization and has no association with IRDA or any Government body.

Click on the below links to read some cases resolved by Insurance Samadhan:

Health Claim Rejection amid Covid-19

Mis-selling in a life insurance policy