The maritime business landscape is a vast one and has multiple parties involved. From the ship owner to the good transporter, the cargo buyer to the freight forwarder, the interests of various parties are invested in the marine business.
Since the marine business is prone to several types of uncontrollable risks and there are multiple parties involved, there are various types of marine insurance policies to protect the assets of all those engaged in the business.
Let us find out the different types of marine insurance in India.
Types of Marine Insurance Policies in India
In India, marine insurance can be classified under different types based on their coverage and based on the structure of the contract. Here are the various types under each category.
Marine Insurance Types Based on Coverage
Marine Cargo Insurance - Marine cargo insurance is relevant for protecting the cargo or goods while they are being transported from the port of origin to the port of destination. If the cargo gets damaged during loading, unloading, an accident, theft, etc., it will be covered under this type of insurance. Such an insurance is ideal for importers, exporters, buyers and sellers having an insurable interest in the cargo.
Freight Insurance - Under freight insurance, the insured gets coverage for loss of revenue due to the cargo or goods getting lost, delayed, or damaged during transit. Under this insurance, the liability of the shipping company or the logistics provider is covered.
Hull and Machinery Insurance - The most integral part of any ship is its hull, as it keeps the cargo on the ship safe from damage. Hull insurance covers the damage to the ship’s hull caused due to accident, fire, collision, grounding, etc. Hull insurance is crucial for ship owners as it enables them to recover the cost of repair and replacement of the ship.
Liability Insurance - Under liability insurance, there are various sub-types, such as protection and indemnity insurance, charter liability insurance and ship repairer’s liability insurance. It deals with the legal liabilities of the insured that may arise as a result of bodily injury, loss or damage to property, accident, or illness to third parties. It also includes other maritime risks, such as collision, pollution, salvage and so on.
For example, if a crew member on the ship is injured during a collision, they may sue the ship owner and the owner may be required to pay them compensation. However, if the ship owner has liability insurance, the cost of compensation will be covered by the insurance.
Marine Insurance Types Based on Contract Structure
Open Policy - Also known as floating policy, this type of marine insurance covers multiple voyages under a single policy. Marine businessmen who engage in a high volume of trades and undertake multiple voyages in a year can get coverage for each transit journey with a one-time policy purchase.
Voyage Policy - Such marine insurance is specific to a particular voyage. Under this type of insurance, the insurer agrees to cover the vessel or cargo during that particular voyage and the policy expires once the journey is completed.
Time Policy - A time policy is fixed for a particular period. During this time, the insurance company covers all the voyages that an insured may undertake. For example, if you buy a time policy for one year, it will cover all the voyages during that period.
Mixed Policy - It is a mix of time policy and voyage policy, where the insurer agrees to cover the loss of a particular voyage until a specific period.
Fleet Policy - When a person opts for a fleet policy, the insurer covers the loss or damage to multiple vessels under a single policy.
Some of the other types of policies include valued policy, unvalued policy, block policy, named policy, wager policy and so on.
Get the Confidence to Sail with TATA AIG Marine Insurance
Many types of marine insurance policies are available in India to meet the requirements of all the parties involved in marine activities. From hull and machinery to liability insurance, freight insurance, cargo insurance, time policy, fleet policy, etc., there are multiple options for every requirement.
While choosing the right type of policy is crucial, it is also important to partner with a credible insurance provider. TATA AIG is a reputable insurance company offering tailored solutions for your marine business.
Their insurance plans have a wide scope of coverage and cater to the requirements of various entities engaged in the marine business. You get coverage for accidents, collisions, sinkage, cargo damage and loss, piracy attacks and so on.
Get your vessel and cargo insurance from the top insurers in the industry.