Understanding the Basics of Proper Marine Insurance in India

Maritime shipping is the most economical and safe way to transport goods across the world, and companies that support this massive industry must provide better services and products to help the business. India's history with marine shipping and transportation goes back thousands of years; but activities like marine insurance have been modernized drastically in the last decade. Even a few years ago, ship builders and transportation companies were heading out to look for international insurance agents to insure cargo, shipping, and port activities. However, the biggest of Indian insurance agencies have begun to scale up their services and introduced various tailor made products to give a new lease of life to this business domestically.

Marine Insurance in India covers all the modern needs of maritime shipping and transportation activities, and their coverage and processes are much better suited for Indian businesses. Not only are the policies tailor made, and the premiums much smaller than international companies; processes like investigation and payment clearance have also been beefed up to outdo international competitors. Marine insurance is important for various sectors of this vast industry, ranging from ship builders to cargo and freight companies.

Let us try and understand a simplified structure to the different kinds of insurance covers under the broader term of 'Marine Insurance' -

(a) Cargo Insurance - Protecting the shipment is obviously the first focus of any insurance cover, and Cargo Insurance protects you against losses due to natural causes as well as human error. You can apply for one time project cargo, open cover policies, or long term annual policies if your business has to do with regular marine shipping.

(b) Marine Hull and Machinery Insurance - Building a modern commercial freight ship or even a small (properly equipped) fishing vessel or inland barge is a huge investment. Naturally, Marine Insurance in India covers all the stages of this process, from ship building to the long term running and maintenance of vessels. Marine hull and machinery insurance schemes protect you against the general damages to the vessel; as well as other liabilities like charters and general protection and indemnities. Fire, explosions, collisions, stranding, sinking, and salvage charges also come under marine hull and machinery insurance. This kind of cover also takes into consideration human factors like piracy or natural disasters like earthquakes and marine volcanic activities which are important in this trade.

(c) Port and Terminals - Whenever a large vessel enters a port or terminal area, there are various risks that you need protection from. The best companies providing marine insurance in India create policies that protect you against technical problems like loss of property, business interruptions, clean up costs, and collisions. They also provide good coverage against stevedore liabilities like loss of life or property; which is extremely important, since marine shipping is a very risky line of work with considerable perils.

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