Author: aapkatransit

Marine Insurance Myths Debunked By Experts

Cargo insurance is only for big shipments. Marine insurance covers all risks comprehensively and coordinating with a cargo insurance company is a heavy task. All these are myths about marine insurance.

While putting your shipment at risk, these myths and misconceptions around transit insurance can prevent you from enjoying all the advantages of marine insurance. We got our experts to debunk the most common myths about marine cargo insurance.

Myth about cargo insurance

Myth 1: Only Large Shipments Need Marine Insurance

Expert Insight:

A common myth about cargo insurance is that small shipments don’t need it, and only precious cargo requires safeguarding. Experts in the maritime insurance industry emphasise that the shipment size doesn’t correlate with the level of risk involved.

Even small parcels or packages can be exposed to hazards such as rough weather, accidents, theft, or vessel sinking, ultimately resulting in financial loss. Likewise, Forwarders and Customs House Agents must tap into the cargo insurance opportunities for both, large and small shipments.

Myth 2:  Cargo Insurance Coverage Only Apply To Goods on Water

Expert Insight:

Marine insurance isn’t confined to goods shipped solely by sea; it encompasses goods transported via various modes such as air or land.

If you want to send your fabric shipment to the USA, for instance, it’s crucial to insure goods from their starting point to their destination, regardless of the mode of transport. Risks to cargo stand at each point of the transit and you must be prepared against it.

Myth 3: All Risks are Covered by Default

Expert Insight:

While marine insurance provides coverage for various risks associated with the transportation of goods over water, it doesn’t cover every possible scenario. Every policy has its limits and exclusions, depending on the terms and conditions of the policy.

Exclusions such as acts of terrorism, war risks, and pre-existing damage to cargo or vessels are commonly found in marine insurance policies. Shippers should carefully review their insurance policies to understand the extent of coverage provided.

Myth 4: Cargo Insurances Are Too Complicated and Time Consuming

Expert Insight:

Traditionally marine insurance process was done on paper, making it complicated and overly time-consuming. But with insurance digitalisation, online portals like Aapka Transit are making buying marine insurance smooth, error-free, easy and quick.

Now Forwarders and insurance agents can buy insurance from reputed cargo insurance companies in India within 3 minutes and your cargo is ready to be shipped. Developed with an easy-to-interact dashboard and secured technology, the Aapka Transit marine insurance portal simplifies your cargo insurance experience.

Aapka Transit simplifies the process of obtaining marine insurance, offering an intuitive online platform for transparency, trust, security and efficiency. We provide a convenient avenue for shippers to secure comprehensive coverage tailored to their needs, offering peace of mind throughout their maritime ventures.

Sail to cargo security with Aapka Transit. Start your journey today.

Why Get The Best Marine Cargo/Transit Insurance?

More than 80% of global trade occurs through maritime routes. However, these waters are not always smooth sailing. Unforeseen risks can threaten your cargo. That’s why having the best Marine Cargo/Transit Insurance is a necessity.

Why Get The Best Marine Cargo

With Aapka Transit, safeguarding your goods during the complexities of global trade is made simple and secure. Let’s explore why this insurance is crucial for your business.

  1. Dealing with Nature’s Surprises:

Challenge: Weather Conditions and Natural Disasters

Solution: Choosing the best insurance helps cover the costs if your cargo faces challenges like storms or natural disasters during transit.

  1. Handling Supply Chain Bumps:

Challenge: Interruptions and Delays in the Supply Chain

Solution: Unexpected delays or interruptions in the supply chain can happen. Marine Cargo/Transit Insurance gives you financial protection to recover losses.

  1. Coping with Human Errors:

Challenge: Mistakes, Accidents, and Mishandling

Solution: Human errors or accidents during loading and unloading can lead to damage. With robust insurance, you have a safety net to cover such losses.

Why Choose The Best Marine Cargo/Transit Insurance:

  1. Instant Financial Protection:

Swift Support: If something unexpected happens, the best Marine Cargo Insurance provides immediate financial help, minimizing the impact on your business.

  1. Reduced Transportation Risks:

Better Confidence: Complete insurance plans lower the risks during transportation. This means you can trust that your shipments are well-protected.

  1. Legal Compliance and Trust Building:

Meeting Regulations: Having the right insurance not only keeps you legal but also builds trust with clients and partners who know you’re prepared for any surprises.

How Aapka Transit Can Be Your Best Choice?

When it comes to international trading, you can trust the Aapka Transit Portal. With features intended for global issues, it simplifies insurance for organizations.

Key Features of Aapka Transit:

  • Insurance IN 3 mins: Quick and easy protection for your shipments.
  • Assured Claiming: A simple process for peace of mind.
  • Flexible-Premium Rates: Cost-effective coverage with adaptable rates.
  • 25+ Years of Experience: Industry expertise to guide you effectively.
  • 24/7 User Support: Help whenever you need it, day or night.
  • Ethical Code of Conduct: Trust and transparency in every interaction.
  • Advanced Security Measures: Top-notch protection for your sensitive information.
  • Top-notch Insurance Company in India: Collaboration with reputable insurers for reliable coverage.
  • All-in-One Insurance Services Available: One-stop-shop for all your insurance needs.

The unseen risks in global trade demand only the best Marine Cargo/Transit Insurance. Aapka Transit makes it easy, ensuring your journey is smooth, and your cargo is secure. So, insure your journey, protect your cargo, and embrace international trade with confidence and peace of mind.

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A Step-By-Step Guide For Online Marine Insurance

Answer this:
Is it possible to buy marine insurance in under 5 minutes?

Yes. But can you buy instant cargo insurance within 3 minutes? Well, with Aapka Transit, yes you can!

How To Buy Marine Insurance OnlineComputed to deliver a stress-free commercial insurance experience, the Aapka Transit online portal enhances the pace of buying cargo insurance. If you are a Custom House Agent, forwarder or business owner looking for an easy way to buy marine shipping insurance, then gather up, because we are sharing each step involved in purchasing cargo transit insurance with Aapka Transit.

How To Buy Marine Insurance Online

Once you have set up your account, the portal will take you to the dashboard upon logging in. From here, you need to select the insurance, fill up all the details when prompted and finally pay.

Steps in a glimpse: Buy Insurance>>Fill In Details>>Pay.

Let us dive into more details. One step at a time.

Step 1: Select your insurance base

On the dashboard, head to the left side of the menu. Here you’ll find the Buy Insurance section. Select it. A pull-down menu appears with 4 insurance options (import, export, inland and container). Here, opt for the right insurance base.

Step 2: Set in insurance details

Next, fill in the prompted details, like whether you buying instant cargo insurance for an individual or company and your GST number.

For an accurate and stress-free commercial insurance process, Aapka Transit enables autofilling as you feed in the GST number. Hence, reducing the chance of feeding in wrong information.

Step 3: Add your billing details 

As a CHA and agent, you can opt for the ‘Bill to other’ option and select if you want to bill the insurance to a person or company. Feed in the GST number and our smart portal will take care of the other details.

Hit Next.

Step 4: Share cargo information

From the description and type of the commodity to the leaving and arriving destination fill in every detail in the form box. Other details you need to add include:

  • Terms of sale
  • Transit mode
  • Packaging
  • Coverage start location
  • Coverage end location
  • Transit start date
  • Insurance coverage type
  • etc

Note: Fill in details applicable to your instant cargo insurance needs.

Step 5: Give these additional data 

Once you are set with cargo information, head to the invoice section by clicking on next. Put in invoice number, date and a copy of the invoice.

Step 6: Fill in monetary requirements

The next section is all about value details. Follow the tags and add the right currency( eg. USD, GBP, MDL etc), exchange rate and invoice amount. As you put in the last figure, the portal will calculate the sum incurred.

Hit next and agree to the policy.

Step 7: Check the insurance premium details

As you click on ‘I Agree’ (step 6), you will get the Total Premium to be paid. From the top right section, check if you have an apt balance.

If not, click on the ‘Add’ button and add the required funds via net banking, debit or credit card, UPI, or wallet. Once done, finally, click on Submit to finish the process.

Have a look at the clock now, you already have cargo transit insurance and still have time in your hand. If you wish to review your insurance policy, head to the ‘Policy Register’, from here you can access, see, and download your insurance policy.

Easy isn’t it?

For more details, head to our blog section. To get started with an improved way of buying marine insurance, head to our site and ask for a free quote today.

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How to Protect Your Cargo Throughout the Supply Chain

The cargo insurance industry stands at an ebb and flow of $57.06 billion in 2024 with a CAGR of 4.3%. As the tide turns towards instant online goods transit insurance, it becomes essential for importers and exporters to protect cargo throughout the supply chain.

Protect Your CargoFrom inland transportation to the dock, cargo risks and damage roam around at each corner in the form of faulty packaging, rough handling, poor loading, theft, and of course, transport accidents. Here is how you, as a forwarder can protect cargo throughout the supply chain with instant cargo insurance.

Understanding The Risk

Before you buy marine insurance, it is crucial to understand all the risks that may come your way. Theft, damage, and loss are omnipresent dangers in the supply chain, capable of disrupting operations and leaving you in a sea of financial losses.

With a clear assessment of the risks implicated at different stages of the supply chain, you can buy the most comprehensive coverage. Ask yourself, do you require All-risk Goods Transit insurance, or Named Perils Cargo Insurance? Is the route of transit opened to threats like theft or war?

Wide Insurance Coverage At Your Fingertips

Get what you want when it comes to goods transit insurance. With a precise risk analysis, you can now opt for the right kind of insurance to protect your cargo.

For instance, as a freight forwarder dealing with high-value delicate goods, having Warehouse-to-Warehouse insurance can offer end-to-end protection throughout the entire transit process, including storage at intermediate locations.

Next, with digitalised insurance portals like Aapka Transit, you are just one click away from an array of cargo insurance provided by multiple reputed insurance providers.

Save On Logistic Costs

At its core, cargo insurance is about securing your finances against potential cargo loss, and getting instant insurance becomes essential to manage your logistic and transport costs. Delayed insurance can lead to increased transportation costs due to potential delays and disruptions.

Online portals like Appka Transit are changing and modernising the cargo insurance setup, by providing instant, secured and seamless insurance. With the belief of providing secured marine insurance in under 3 minutes, Appka Transit aids agents and clients alike to save on your logistic costs at any hour of the day.

Easy And Accessible Documentation

In the traditional landscape, buying marine insurance, or any other transit insurance for that matter, would echo in endless paperwork and documentation. While you secure your cargo at every point of the supply chain, Aapka Transit makes sure your experience is seamless and simplified.

Secondly, from Appka Transit’s easy-to-navigate dashboard forwarders and Custome House Agents (CHA) can access records of all the insurance bought, aiding in effortless claim management for your client and project management for your logistics.

With this, you are all set to protect your cargo throughout the supply chain, the only thing remaining is to take the first step towards implantation. Head to our site to get a free quote today.

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The Rise of E-commerce and Its Impact On Cargo Insurance

In the last ten years, online shopping has completely changed how businesses work. This big shift to e-commerce has not only changed how people buy things but also how goods are moved around the world. It’s like a whole new way of doing things. 

Aapka Transit, with more than 25 years of experience, is right in the middle of this change, dealing with the challenges and good things that come with the rise of online shopping.

Impact On Cargo Insurance

Simplified Insurance for Modern Commerce:

As more people buy things online, Aapka Transit has made it super easy to get insurance for the goods being shipped. It takes only 3 minutes – that’s as quick as ordering food online! This quick and easy process is crucial in a world where things happen fast.

Customised Solutions for Present Challenges:

Aapka Transit knows that sending things around for online shopping comes with its own set of problems. So, we’ve come up with special insurance plans that cover all sorts of ways things are moved – whether it’s in a big container, on a ship, in an aeroplane, on a train, or in a truck. We’ve got it all covered, making sure your stuff is safe no matter how it travels.

Prioritizing Data Security:

Keeping your information safe is also a big deal. Aapka Transit has strong locks and guards in place to make sure your important details stay private and secure during the insurance process. 

Innovative Insurance Plans for the Future:

With more than 25 years of experience, Aapka Transit knows the ins and outs of the business. We follow the rules and standards, but we also know how to change and adapt to keep up with the fast-paced digital world. That’s a lot of years of learning and figuring things out!

Collaborative Safety Measures:

Aapka Transit isn’t just sticking to the old ways. We’re introducing new and smart insurance plans that match the needs of modern shopping. It’s about being flexible and smart in protecting your stuff in a world that’s always changing.

Figures That Speak Volumes:

Aapka Transit believes in working together. We bring online stores, delivery folks, and the rule-makers together to make sure everything runs smoothly and stays safe all the time. It’s like teamwork making sure your things get to where we need to be without any problems.

So, in simple terms, Aapka Transit is your go-to friend for making sure your things are safe and insured in the world of online shopping. We make it easy, and safe and adapt to the new ways of doing things in the world of e-commerce.

For your unique insurance requirements head to our website right now!

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The Role of Technology in Cargo Transit Insurance

Here is a trivia: the Gulf of Aden stretches across 1,480 km.

But what does this mean to you in terms of cargo insurance? A cargo ship traveling at the highest speed (30 knots) will take, at best, 24.26 hours to cross the Gulf of Aden, the home to maritime pirates and turbulent waters.

Cargo Transit Insurance

No wonder having import-export insurance becomes crucial to protect your resources. However, technological advancement in maritime cargo insurance is anchoring against these risks to insure your cargo so that you at least are equipped to overcome any possible loss.

Let us dive into the details of the exact role of technology in protecting cargo.

How is Automation Adding Cargo Insurance Industry?

Protect your cargo with automated marine insurance in the following ways:

  1. Paperless Transactions
  2. Enhance Claims Management
  3. Quick Insurance Anytime
  4. Cybersecurity Challenges
  5. Error Free Execution

1. Paperless Transactions

Traditionally, marine cargo insurance was bought and applied via pen and paper. This made the whole process prolonged, cluttered and stressful. By digitalising the process of buying marine insurance; you eliminate the bane of endless paperwork.

This results in decluttering and speeding up the whole process for all parties involved, i.e. the forwarders, insurance company and insurance buyer. Secondly, with digital documentation in the goods transit insurance industry, stakeholders now can easily access and share necessary information, improving transparency and expediting insurance procedures.

  1. Enhance Claims Management

The new paradigm in import-export insurance technology is leading an efficient and eased-up claim management system. Insurers and agents now have an archive of all transit insurance issued under their profile.

Through automated systems, exporters/importers can have all documents regarding cargo insurance handy. This means reduced delays and prompt settlements. Other automated workflows assist in streamlining communication between all involved parties, facilitating faster resolution of claims and enhancing overall customer satisfaction.

3. Quick Insurance Anytime

Easing up accessibility, online cargo insurance portals help you protect your cargo anytime, anywhere and on any device.

All you need is to log into your account, fill in the required details and proceed to pay. And now you have marine insurance for your transit. Such technological enhancement enables real-time goods transit insurance assessment and issuance of policies, ensuring that businesses can secure coverage promptly to mitigate risks associated with transportation and logistics.

4. Cybersecurity Challenges

As the tides move towards digitalisation, the risks of data breaches and cybersecurity gain more concern.

With a robust system with sophisticated encryption, newer technology is counting these apprehensions. Data analysis, security alerts, and advanced mobile applications are a few changes on the list.

5. Error-Free Execution:

Traditional cargo transit insurance processes were prone to errors and discrepancies but with the online portals, and unified auto-fill features, Custom House Agents (CHA) reduce the risk of human error and facilitate a more accurate execution.

Secondly, as automated systems consistently adhere to predefined rules and parameters, ensuring precision and reliability in cargo transit operations shines upon your integrity as an agent.

Aapka Transit: Your Trusted Partner in Online Marine Cargo Insurance

At service 24/7 Aapka Transit anchors you against all ebb and flow of the maritime insurance. With a swift, error-free, and fully automated portal, Aapka Transit is mapping the digital landscape of the insurance industry.

Get insured instantly in 3 minutes, anywhere and anytime with our smart portal, made for easing insurance operations for Custome House Agents and insurers alike.

Protect your cargo and peace of mind when Aapka Transit is your insurance partner portal. Request a quote today!

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Guide to Cargo Insurance for Smooth Logistics

When it comes to logistics and supply chain management, safeguarding your goods during transit is a must. Often overlooked, cargo insurance is the key, and here’s why it matters, the types available, and what factors to consider – all in line with Aapka Transit.

Guide to Cargo Insurance
Simplifying Cargo Insurance Basics

In straightforward terms, cargo insurance acts as a safety net for businesses in shipping. It ensures financial protection if your goods are lost, damaged, or stolen during transportation. For businesses, it’s about securing their investments and maintaining a smooth supply chain flow.

Key Benefits of Insuring

1. Instant Financial Safety: Cargo insurance offers immediate financial protection, covering losses or damages to your goods. It’s like an instant backup for unexpected events.

2. Managing Risks with Experts: At Aapka Transit, cargo insurance is like having expert assurance for your shipments. Our professionals are skilled in the cargo insurance world, making sure your goods are covered just right and tackling major issues during trade internationally or nationally. So, with Aapka Transit, you’re not just insured – you’re expertly guided, making global trade a confident and stress-free journey.

3. Compliance and Trust: Sometimes, having cargo insurance is a requirement. Following these rules not only keeps you legal but also builds trust with everyone involved.

Exploring Different Cargo Insurance Options

1. All-Risk Cargo Insurance

This coverage protects against various risks – theft, damage, and natural disasters. It may cost a bit more, but it provides extensive protection for your valuable shipments.

2. Named Perils Cargo Insurance

This type explicitly mentions and covers specific risks. It’s more affordable but requires businesses to think carefully about the risks they want to cover.

3. General Average Cargo Insurance

If a ship captain sacrifices some cargo to save the ship, this insurance covers the shared loss. It ensures that everyone involved shares the costs fairly.

Factors to Think About for Comprehensive Coverage

1. Nature of Goods: Different goods need different protection levels. For instance, perishable goods might need special coverage.

2. Mode of Transportation: Whether by sea, air, or land, each mode has its risks. Choose insurance matching the challenges of your chosen mode.

3. Destination and Route: Where your goods are going and the route they take affect the risks. Customize your insurance to fit these factors.

Aapka Transit, Your Reliable Guide

Cargo insurance is a vital part of a robust logistics strategy. Insuring your goods not only protects businesses financially but also enhances the smooth functioning of the supply chain. By understanding the importance of cargo insurance, knowing the types, and considering key factors, businesses can handle logistics complexities with confidence.

Ensure the safety of your shipments – get the right cargo insurance coverage with Aapka Transit today, and remember to Insure Karo, Instantly. It’s a simple and reliable way to secure your goods during transit.

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Clearing the Waters: Guide to Trade Contracts and Marine Cargo Insurance

In the sea of Trade Contracts and Marine Cargo Insurance, finding the one that suits your needs the best is a challenging task. Especially when shipping items across borders in a hurry. Let’s break down the basics and make it easy.

Aapka Transit is here to talk about trade contracts like Ex-works, CNF/Fob/C&F, CIF/CIP, DAP/DDP, and different cargo insurance types, giving you a helpful guide for global business.

Understanding Marine Cargo Insurance Policies

Popular Trade Contracts

Although there are numerous trade contracts issued by the International Chamber Of Commerce, Aapka Transit has listed the most popular Trade Contracts to make your search easy:

1. Ex-works:

In an Ex-works arrangement, the seller delivers the goods at their premises, and the buyer bears all transportation costs and risks. This trade contract places the maximum responsibility on the buyer.

2. CNF/Fob/C&F:

These terms, Cost and Freight (CNF/ C&F), and Free on Board (Fob), dictate the point at which the risk and responsibility shift from the seller to the buyer. CNF and C&F include transportation costs, while Fob requires the buyer to bear these costs.

3. CIF/CIP:

Cost, Insurance, and Freight (CIF) and Carriage and Insurance Paid To (CIP) include insurance costs in addition to transportation costs. The seller arranges insurance coverage for the buyer’s benefit, ensuring added protection during transit.

4. DAP/DDP:

These two terms Delivered at Place (DAP) and Delivered Duty Paid (DDP) place the maximum responsibility on the seller. In DAP, the seller delivers goods to a specified destination, while DDP includes all duties and taxes paid by the seller.

Understanding Marine Cargo Insurance Policies

1. Specific Transit Policy:

This policy provides coverage for a specific shipment from one point to another. It is customised for businesses with infrequent shipments and offers a focused and cost-effective solution.

2. Open Marine Policy:

An open marine policy provides continuous coverage for all shipments within a specified period. It offers flexibility for businesses with frequent shipments, eliminating the need to purchase separate policies for each consignment.

3. Sales Turnover Policy (Stop):

Geared towards businesses with regular shipments, the sales turnover policy (stop) provides coverage based on the insured’s annual sales turnover. This comprehensive policy adapts to the evolving needs of growing enterprises.

4. Bulk Cargo Policy:

Designed for businesses dealing with bulk shipments, this policy provides coverage for large quantities of homogeneous goods. It ensures efficient and cost-effective protection for businesses involved in bulk cargo transport.

Running a global business does not have to be difficult. Understand the complexities of trade contracts and cargo coverage with Aapka Transit.

Whether you choose Ex-works or CIF, specialized transit rules, or open maritime policies, our platform allows you to easily align options with your specific business needs in just 3 minutes. Ready to set sail? Make informed decisions and confidently journey international commerce waters with Aapka Transit.

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How to Find the Best Online Marine Cargo Insurance Deals

Positioned to reach USD 50.5 Billion by 2032, the marine cargo insurance market is no less than a vast ocean in itself. With so many options available online, finding reliable and suiting marine insurance deals will surely test your waters.

Without the right and comprehensive understanding, you may end up lost and in loss. Worry not, this blog by Aapka Transit will act as the lighthouse, bringing you safely closer to the right online marine cargo insurance deals.

Online Marine Cargo Insurance

Decoding the Basics of Marine Insurance

What is marine cargo insurance exactly? Marine insurance provides coverage for vessels, cargoes, and marine-related liabilities.

It’s a specialised form of insurance that covers the loss or damage of ships, cargo, and terminals by which any cargo is moved or held anywhere between two points.

Things to Consider While Buying Marine Insurance

Right from the cargo insurance type to coverage limits and loss settlement, there are many things to consider while finding your match for Marine cargo insurance deals. Here are our key takeaways to keep in mind-

1. Access Your Marine Insurance Needs

The first step in securing the best online marine insurance is to conduct a thorough assessment of your needs. Evaluate the vessel type, its purpose, and the waters it navigates. Different vessels may require different types of coverage, such as hull insurance, or specialised coverage for specific equipment.

Ask, how much insurance do you need? This can be based on the estimated value of all the assets or the financial impact of the risk. This will guide you in selecting the right value and type of marine insurance.

2. Compare Different Coverage Options

When comparing different coverage options, consider every tiny detail, including premium value, coverage types, claim process, terms and conditions, policy limits and other elements. Also, inquire about policy specifics like the deductibles (the amount you must pay out of pocket before the insurance coverage kicks in) and exclusions involved.

While analyzing different marine insurance deals, also pay keen attention to the reputation of the provider as well.

3. Fish Out for Discounts and Savings

Make the most of your marine cargo insurance with discounts and savings. The availability and amount of discounts will vary among insurers, and it’s essential to inquire about potential discounts when obtaining quotes.

4. Leverage Online Tools for Comparison

Get ahead with online marine insurance portals and comparison tools. Portals, like Aapka Transit eases up your search for a befitting marine cargo insurance deal with a quick, secure, easy and transparent setup.

Get quotes, understand policy specifications, and find marine caro
insurance deals tailored to your needs with a team of the most trustable and knowledgeable insurance experts.

What more? Effectively save money, time, and effort.

Weighing the Anchor: Conclusion

With these considerations in mind, you are all equipped to navigate the world of marine cargo insurance. Aapka Transit gets you the best deal in terms of price and the peace of mind that comes with knowing your vessel is adequately protected on its maritime adventures. Head to our site, to get quotes today.

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What is Marine Cargo Insurance and How Does It Work?

Marine Cargo Insurance

In a world where interconnectedness is giving rise to new business opportunities that are shaping the infrastructure for industry 4.O. The channels of modern-day businesses are spread across roads, rail, water, and air. Despite the swift advancements in technology in various sectors, the inherent risks associated with transporting goods persist. Unfortunately, risks like natural calamities, fire, theft, strikes, war, and other unforeseen circumstances have risen considerably along with an increase in inter- and intra-border transportation.

In such circumstances, cargo insurance is the only solution to safeguard the risk associated with the transit of goods. Usually, things like insurance are dealt with after all the necessary tasks are done. To some extent, this is practical for business because it’s hard to estimate accurately until your goods are ready to be dispatched.

The matter of concern starts when most businesses start to rely on shipping or other third-party agents for their insurance needs. While there’s nothing inherently wrong with this approach, it’s crucial to select the correct and knowledgeable subject matter expert who can thoroughly review all the terms and conditions to ensure that, when there is a loss, the settlement of a claim is just and fair.

A marine cargo insurance agreement is an agreement between the cargo owners and the insurance company. It is an agreement transferring the risk of damage to cargo to the insurance company in case of unforeseen circumstances.

This ensures two major benefits:

  • Expert technical support from the insurance company during the time of loss or damage.
  • A seamless trade experience every time.

Marine cargo insurance covers transit from point to point, depending on the nature of the trade contract between buyer and seller.

Few of the popular trade contracts are.

  1. Ex-works
  2. CNF / Fob / C&F
  3. CIF / CIP
  4. DAP / DDP etc.

Coverage under marine cargo insurance:

The type of coverage provided by the insurance company depends on the nature of the cargo, type of packaging, and mode of transport. The insurance umbrella consists of various types of coverage; therefore, it is always suggested to plan before purchasing a cargo insurance policy. Below are the three major coverages provided by the insurance company.

ICC C – BASIC STANDARD CARGO COVER AGAINST MAJOR CASUALTIES
ICC B – WIDER INTERMEDIATE FORM OF COVER
ICC A – BROADEST COVER ON AN ALL-RISK BASIS WITH EXCEPTIONS

MARINE CARGO INSURANCE POLICY EXCLUSION:

THE INSTITUTE CLAUSES RETAIN GENERAL EXCLUSIONS UNDER ALL THREE COVERAGES SUBJECT TO SPECIFIC ADD-ON COVERAGES MENTIONED IN THE POLICY.

Types of marine cargo insurance policies:

  1. Specific transit policy
  2. Open marine policy
  3. Sales turnover policy (stop)
  4. Bulk cargo policy

Important factors for the smooth functioning of Marine Cargo Insurance:

Mode of Transportation: An importer or exporter will usually choose water or airways for delivering the cargo, whereas businesses that trade locally will go by road or railway. Therefore, defining the means of your transportation gets you going in advance.

Route of Shipment: The destination of your consignment and geographic path truly define the kind of risk associated with your cargo. Routes through war zones or pirate waters increase exposure to multi-dimensional risk. Longer ocean voyages face more perils than short hauls. All these factors are taken into consideration by the insurer while structuring appropriate policy terms and conditions.

Valuation of Goods: The marine cargo insurance is declared a value policy. Generally, the value declared under the invoice is considered for the calculation of the premium plus duty component, if any, on an actual basis. Underinsurance or over insurance is considered, if any, at the time of loss.

Claims Handling and Documentation: The insurance company requires prompt notice and documentation for cargo loss claims. Submitting proof like survey reports, invoices, freight receipts, and custom forms is the key. Thorough paperwork and responses from the insured will facilitate a fair and timely claim settlement.

Reputation: The insurer’s reputation and financial strength are critical for their business. Large losses can strain the insured. A history of fair claim settlement matters the most. Pick an insurer known for managing losses promptly.

All these factors play a major role in the basic functioning of Marine Cargo Insurance. Before insuring your goods directly or through your agent, always remember to primarily check all these factors.

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