Sea Transit
Protection for cargo transported through international and domestic sea routes.
Marine • Air • Road • Rail
Marine Cargo Transit Insurance Services
Protect your products throughout their journey with Marine and Transit Insurance designed for importers, exporters and businesses involved in international and domestic trade.
Air Transit
Safeguard shipments moving through air freight shipping.
Road Transit
Coverage for eligible cargo during insured road transportation.
Cargo Protection
Financial protection against covered loss or damage during transit.
30+
Years of freight forwarding experience
Cargo Protection
Protect Your Goods From Origin to Destination
Marine and Transit Insurance provides financial protection for products against various risks during transportation from one place to another.
Marine Cargo Transit Insurance Services are designed to protect your goods throughout their journey. Although the name suggests only Marine Insurance, it can cover multiple transportation modes, provided they are included in your insurance policy.
This may include transit via air, sea and land.
Several importers and exporters buy marine and transit insurance to safeguard their products throughout the journey. If products are damaged or lost during transportation, the insurer may cover the loss according to the policy terms.
Understand the Difference
Marine Insurance vs Transit Insurance
Both types of insurance are designed around transportation risks, but the scope depends on the policy and journey being insured.
What is Marine Insurance?
Marine insurance protects products from damage or getting lost during the transportation process from seller to buyer.
International Trade
It is particularly relevant to international trade where goods may pass through several stages and modes of transportation.
From Factory to Buyer
The journey can involve truck transportation, port handling, shipping, unloading and further transportation to the buyer.
What is Transit Insurance?
Transit refers to the transportation journey. Transit insurance protects goods while they are in the middle of an insured journey.
Domestic & International
It can apply to domestic journeys as well as international trade, depending on the policy.
Multiple Transport Modes
Transit can include sea, air, road and rail transportation.
Why Businesses Need It
Importers and exporters face risks while goods are being loaded, transported, unloaded and transferred between locations.
Financial Protection
Appropriate insurance can reduce the financial impact of covered cargo loss or damage.
Policy Conditions Matter
Coverage depends on the actual policy wording, exclusions, deductibles and applicable terms.
For Exporters
Why Marine & Transit Insurance Matters
For exporters, protecting their product and the product’s value is a crucial step. To ensure that their product is safe, exporters prefer Marine and Transit Insurance.
This protects the product's value throughout the journey so that exporters feel safe about their products. This insurance makes sure that the insurer covers the loss for the seller or the exporter.
For instance, if you export 100 units of a product, your product will go through several phases: being transported from the factory to the port, warehousing, shipping from one place to another, unloading, and then being transported from the port to the buyer.
If your product gets lost or damaged during this journey, you will have to bear the cost. But with marine and transit insurance, the insurer may bear covered losses according to the policy.
You should confirm the policy conditions, insured value, exclusions, deductible/excess, proof of loss, and applicable Incoterm.
01
Factory to Port
Goods may travel from the factory to a warehouse, terminal or port before being shipped.
02
Loading & Handling
Cargo may be exposed to handling risks during loading, unloading and transfers.
03
International Shipping
Ocean or air transportation may involve longer journeys and multiple handling points.
04
Destination Delivery
After arrival at the destination port, cargo may require additional road or rail transportation.
05
Covered Financial Loss
If insured goods are damaged or lost due to a covered event, the insurer may compensate according to the policy.
Coverage
Risks Covered in Marine & Transit Insurance
Marine and Transit Insurance may cover various risks that can occur during transit and storage, subject to the policy wording, exclusions and applicable conditions.
01
Sinking
If a vessel sinks and the cargo is lost.
02
Stranding
When a ship gets stuck or goes aground.
03
Collision
In case of a vessel colliding with another vessel.
04
Fire & Explosion
Cargo damaged by fire or explosion may be covered.
05
Sea Perils
Goods may be damaged due to severe sea conditions. Coverage depends on the applicable policy terms.
06
Handling Accident
Damage during loading, unloading or cargo handling may be covered.
07
Transit Accident
Cargo damaged during an insured road or railway journey may be covered subject to policy conditions.
08
Theft
Theft may be covered where the applicable policy clause includes it.
09
Water Damage
Water-related cargo damage may be covered depending on the circumstances and applicable policy terms.
Important
Situations or things that may not be included under marine and transit insurance include:
Marine and Transit Insurance does not automatically cover every possible loss. Exclusions depend on the policy and insurer.
01. Poor Packaging
Loss or damage caused by inadequate packaging may be excluded.
02. Inherent Defects
Damage arising from an inherent defect in the goods may be excluded.
03. Intentional Acts
Loss caused intentionally may not be covered.
04. Wear & Tear
Ordinary wear and tear is generally treated separately from accidental cargo damage.
05. Shipment Delay
Losses arising only from delay may be excluded.
06. War & Strikes
War and strike risks may require specific additional coverage.
Cargo Cover
Levels of Cargo Cover
The Institute Cargo Clauses (ICC) commonly describe three levels of cargo cover.
A
ICC (A)
This is the broadest level and generally provides broad coverage for physical loss or damage from accidental causes, subject to exclusions and policy conditions.
Broadest Cover
B
ICC (B)
This is an intermediate level of cargo cover. It specifies particular risks and covers losses or damage falling within those insured risks.
Specified Risks
C
ICC (C)
This is a more basic cargo cover with a more limited list of insured risks than ICC (B).
Basic Cover
Trade Terms
Who Buys the Insurance — Exporter or Importer?
Incoterms published by the International Chamber of Commerce are used in trade contracts to clarify responsibilities, costs and transfer of risk between the seller and buyer.
The insurance responsibility can vary depending on the selected Incoterm and the contractual arrangement.
EXW — Ex Works
The buyer generally arranges insurance. The buyer's responsibilities include pickup, transport and applicable import and export formalities.
FCA — Free Carrier
Under FCA, the buyer generally handles main transport and import clearance and may arrange insurance.
CPT — Carriage Paid To
Under CPT, the seller pays carriage to the agreed destination, while risk transfers according to the Incoterm. Insurance is generally arranged by the buyer unless separately agreed.
DAP — Delivered at Place
The seller transports the goods to the agreed destination and makes them available for unloading. Insurance is not automatically a seller obligation under DAP.
CIP — Carriage & Insurance Paid To
Under CIP, the seller arranges carriage and insurance to the agreed destination in accordance with the applicable Incoterm requirements.
DDP — Delivered Duty Paid
The seller handles transportation and applicable export/import clearance and duties. Insurance is not automatically required under DDP unless agreed.
DPU — Delivered at Place Unloaded
The seller transports and unloads the goods at the agreed destination. Insurance is not automatically required of the seller.
FAS — Free Alongside Ship
The buyer generally arranges insurance, while the seller delivers the goods alongside the vessel and completes applicable export formalities.
FOB — Free On Board
The seller delivers the goods on board the vessel and completes applicable export clearance. The buyer generally arranges insurance.
CFR — Cost & Freight
Under CFR, the seller pays the ocean freight to the agreed destination, while the buyer generally arranges cargo insurance.
CIF — Cost, Insurance & Freight
Under CIF, the seller arranges insurance and pays the freight to the agreed destination, subject to the applicable Incoterm requirements.
MARINE & TRANSIT INSURANCE
Basic Rates for Marine and Transit Insurance
01
Empty 20’ ft Container
If you are shipping an empty 20’ ft container, the basic rates are INR 125/-.
INR
125/-
02
Empty 40’ ft Container
For a 40’ ft empty container, the charges are INR 250/-.
INR
250/-
03
ISO Tank or Reefer Containers
For ISO Tank or Reefer Containers, the most basic insurance rate is 0.7% of the applicable insured value.
0.7%
Applicable Insured Value
SHIPMENT TYPES
Types of Shipments Included in This Rate Bracket
01
Inland (Domestic)
Goods transported within India.
02
Import (CIF/CIP - Tail end)
Insurance for the final and inland portion of an import shipment where CIF/CIP arrangements apply.
03
Import (other than CIP/CIF)
Import shipments where the buyer or importer has to arrange insurance.
04
Export (FOB/CFR)
Export shipments under FOB or CFR terms.
05
Export (other than EXW/CFR/FOB)
Export shipments under other applicable terms.
06
Cross Voyage
Goods transported between two foreign countries, without the shipment being a normal Indian import or export.
Claims
Marine & Transit Insurance Claim Process
If goods are damaged or lost during insured transit, following the applicable claim process and preserving evidence can help support the claim.
1
Notify Carrier & Insurer
Notify the carrier and insurer that your products or goods have been damaged or lost.
2
Preserve Evidence
Preserve evidence such as photographs, packaging, transport documents and other records that may support the claim.
3
Survey or Inspection
Depending on the circumstances, a survey or inspection may be required to document the cause and extent of damage.
4
Submit Documents
Submit the required documents to the insurance company to initiate the claim assessment.
5
Claim Assessment
The insurer reviews the circumstances, supporting documents and policy terms to assess whether the claim is covered.
6
Settlement
Once the claim is approved, settlement is processed according to the applicable policy terms.
Documentation
Documents Required for an Insurance Claim
Depending on the insurer and claim circumstances, various documents may be requested.
Insurance Certificate
Proof that the shipment was insured.
Commercial Invoice
Shows the value and details of the products.
Packing List
Contains descriptions, quantities and packing details.
Bill of Lading / AWB
Provides shipment and transportation details.
Transport Documents
Evidence of transportation, movement and route.
Survey Report
Records relevant findings concerning cargo damage.
Insurance Claim Form
Formal request submitted to the insurer for claim consideration.
Damage / Loss Certificate
Evidence that products were lost or damaged.
Proof of Delivery
Helps establish the condition of goods at delivery.
Photographs
Visual evidence showing the condition of damaged or short-shipped products.
Carrier Correspondence
Records notification of damage or loss to the carrier.
Repair / Replacement Estimate
May help establish the financial extent of the loss.
Letter of Subrogation
May be required where the insurer seeks recovery from a responsible third party.
Bank Details
May be required for approved claim settlement.
Why Falcon?
How Can Falcon Help You?
Falcon is one of the reputed freight forwarding and CHA companies in India, with more than 30 years of experience. We offer services designed to make your import and export journey more convenient.
In addition to air and sea freight, we provide complete documentation, licensing, customs clearance and support for your insurance service needs.
Conclusion
Safeguard Your Cargo Throughout Its Journey
Importing and exporting products involves transportation and handling risks. Appropriate insurance can provide financial protection for covered loss or damage during the insured journey.
The claim process may require supporting documents such as the insurance certificate, commercial invoice, packing list, transport documents, photographs and survey reports. Requirements vary according to the insurer and claim.
Falcon can help businesses with import and export logistics around the world. For assistance with your cargo and transit requirements, call +91 93115 95648 or email cargodeal@falconfreight.com.
Get Cargo Protection Assistance →