Different Types of Marine Insurance Policies

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Marine Insurance is one of the oldest forms of Insurance. A Marine Insurance Policy provides reimbursement for damage to goods whilst in transit. The Policy covers transit by air, rail or sea and provides coverage against a range of Perils such as Fire, Accident, Explosions, Collisions etc. It is an essential Insurance Policy for organisations whose business involves transit of goods. A Marine Insurance Policy can be customized to suit the requirements of various businesses. It is essential for business owners to understand the different types of Marine Insurance Policies available in India so that they can make an informed decision regarding which Insurance Policy is suitable for their business. Marine Open policy

What are the different types of Marine Insurance Policies?

The different types of Marine Insurance Policies available in India are listed below:

  1. Specific Policy: A Specific Marine Insurance Policy covers a specific transit. For example, a Specific Policy covering a transit from Mumbai to Delhi will only cover damage to goods in the course of transit from Mumbai to Delhi. Once the goods reach the destination (Delhi), the Policy ceases to be effective, and the Insured does not have any further rights under the Policy.
  2. Marine Open Policy: A Marine Open Policy, also known as a Floating Policy, is suitable for organisations which have frequent transit of goods. In such cases, it is not possible for the Insured to purchase a Specific Policy every time. To minimize the administrative hassle for issuing Specific Policies for frequent transits, the Insured can opt for a Marine Open Policy. A Marine Open Policy is an Annual Policy which offers coverage for all transits made by the Insured during the Policy Period. The Policyholder does not need to take out a separate policy for each transit, rather he can make a declaration on a periodic basis of all the transits taking place during the period.
  3. Marine Sales Turnover Policy: A Marine Sales Turnover Policy is a comprehensive Marine Insurance Policy which insures different legs of transit under a single policy. Under a Marine Open Policy, you can insure only a single leg of transit, such as exports, imports etc. while you can insure different legs of transit such as Exports, Imports, Domestic Sales and Purchases, Inter-Depot Movements under a Sales Turnover Policy. A Sales Turnover Policy is suitable for large businesses. Another advantage of a Sales Turnover Policy (STOP Policy) is that it enables a sizeable saving in premiums and provides seamless cover with all movements of goods automatically covered under the Policy.
  4. Stock Throughput Policy: A Stock Throughput Policy is an advanced version of a Sales Turnover Policy and it provides coverage for intentional storage in addition to transit risks. The Storage risks are otherwise covered under a Property Insurance Policy. A Stock Throughput Policy provides coverage for goods during the transit, while undergoing process and while being stored at Warehouses. A Stock Throughput Policy provides seamless coverage for Transit Risks and Storage Risks and insures the company’s goods from production stage to its final destination. The advantage of a Stock Throughput Policy is that it combines storage risks and transit risks from the production stage to final destination, thus plugging gaps in coverage which might arise during the period. Additionally, the Insured receives competitive pricing and a lower deductible than if he took 2 policies separately.
  5. Duty Insurance Policy: A Duty Insurance Policy is issued for imported cargo which are subject to Custom Duties. A Custom Duty Insurance Policy pays claims on the basis of Actual Custom Duty or Sum Insured whichever is less. A Custom Duty Insurance Policy is issued only if there is a Policy on the CIF Value of Cargo
  6. Increased Value Policy: An Increased Value Marine Insurance Policy is issued in case of imported cargo. Sometimes, it is observed that the market value of cargo after arrival is more than the CIF Value + Landing Charges + Handling Charges + Custom Duty. An Increased Value Policy will cover the difference between market value and the total landed cost of the Cargo. The Claim under the Increased Value Policy is settled on the basis of Market Value of Cargo based on its market value of the cargo on the date of arrival of cargo at the destination


A Marine Insurance Policy is essential for all businesses where transport of goods is involved. There are various types of Marine Cargo Insurance Policies available depending on requirements of the business owner. Still confused about which Marine Insurance Policy to buy? Send us an email at insurance@qian.co.in or call us on 022-35134695. We would be glad to assist you.


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