Marine Insurance

Marine & Aviation

The most common risks that is internationally recognized are those due to the perils of the Sea and Air. This encompasses loss of or damage to goods whilst being transported, loss or damage to the vessel or aircraft, loss to their machinery or accessories, the liability arising out of their use or human beings on board, the merchandise or equipment whilst in their own custody and control or with their agents, or with their counterparts, or for the Baileys for transportation.

Aviation Risks

Aviation risks primarily involve the risks of operation of an aircraft and the contents within. This is characterized by a constant exposure to potential catastrophe loss including loss of or damage to the aircraft or its contents, liability towards public, or passengers due to bodily injury or death or due to loss of or damage to property, loss of or damage to airports or hangers, or liability arising out of the products sold or supplied.

Most of these risks can be insured through our Aviation specialist underwriters using tailor-made policy packaging covers to suit specific needs.

Charterer’s Liability

Chartering vessels, ships, barges, aircrafts or any other water crafts is common in the transport industry. The person or company that leases crafts from other parties may end up assuming full responsibility for the craft, its crew and other liabilities as though they are the owner of the craft. Charter-party agreements generally stipulate the level and the type of cover required by the charterer apart from determining the insurable interest.

It is recommended that charterers consult our specialists to seek advice on ascertaining risks and securing a suitable insurance policy.

Freight Forwarders Liability

Freight forwarders are often called the “Architects of Transport”. They may be involved in all kinds of operational, transport as well as ancillary services including issuing their own house bills of lading, making them the contractual carrier or “NVOC”.

Companies that provide freight forwarding, storage, haulage or logistics services are liable for transport and traffic risks by law, as per the terms and conditions of carriage, international treaties and individual contracts. Besides representing the Principal, to whom forwarder owes an obligation to act with reasonable skill and care, the forwarder may face liabilities to the respective authorities or other third party liabilities.

The most common risks faced by Freight forwarders are:

  • Liability due to loss of or damage to Cargo
  • Liability due to loss of or damage to handling Equipment
  • Liability due to Error and Omission
  • Liability to Authorities
  • Third Party Liability
  • Costs and expenses
  • Financial loss due to dishonesty of employees


Most of these risks can be insured under suitably worded Freight Forwarder’s Liability Insurance Policy. If the transporter is only involved in land movements or surface transportation their liabilities are limited to that of a road haulier. Suitably designed haulage liability policy will protect against liabilities faced by the transporter in their capacity as road haulier. The risks associated with the Freight Operation is complex in nature you are recommended to consult specialists in this area.

Goods in transit

Manufacturers, cargo owners or traders are exposed to the risks of cargo or merchandise being lost or damaged whilst in transit. This could be through their own vehicles, hired vehicles or cargo entrusted to transporters for local movement. These transits can be insured one by one or, for convenience, under an open cover or open policy, which operates in the same manner as the Marine open cover. Policies can be designed on estimated value of the cargo being moved by adjusting premium on actual value during the policy period.

Hull & Machinery

Hull & Machinery Insurance is a class of ocean marine insurance that covers physical loss/damage to the ship or vessel insured. This branch is a very specialised class of insurance concerning the insurance of hull & machinery of ocean going vessels including but not limited to barges, trawlers, fishing and sailing vessels. The coverage is in addition to the ship owner’s other insurable interests, known as subsidiary interests, like freight and disbursements and is usually written on an “all-risks” basis.


One of the most common, oldest and widest classes of insurance is that of the loss of or damage to cargo whilst being transported or held in care and custody of a vessel or aircraft owner. People involved in international trade understand that the cargos transported by sea, air, road or rail are at the mercy of innumerable hazards during transit. Cargo or merchandise often passes through many parties during the transit and importers or exporters can be exposed to financial ruin if their cargo is lost or damaged in transit. There could also be risks to the financial interest of Banks or other institutions that may have advanced loans against the surety of goods. They could be exposed to the risks of losing the cargo, thereby losing chances of recovering their lent money. The most common risks are loss or damage to cargo due to:

  • Use of incorrect machinery or unskilled labour
  • Poor handling
  • Inappropriate or intermediate storage
  • Theft or pilferage
  • Damage due to fire or water
  • Collapse of stowage
  • Natural calamities


Apart from these risks, companies may be exposed to the risk of being asked to contribute towards the General Average and Salvage Charges. As an exporter, you may be exposed to certain risks such as financial insolvency of the buyer, abandoned cargo etc. Consequential loss due to loss or damage to cargo can also be a risk and can be included in the policy to a certain extent. It is also critical to examine the risks of War, Strikes and Civil Commotion.

While each transit or shipment should be insured, if the number of transits is high these can be streamlined through an Open cover or an Open Policy or Goods in transit policy whereby your anticipated transits can be covered or held covered at pre-determined terms and conditions. Transit Policies can be extended to include the risks whilst the cargo is kept in temporary or permanent storage. If the cargo is for construction or installation purposes, the transit policies can be extended to include the cargo whilst being erected.

The most common types of covers are:

  • All risks subject to Institute Cargo Clauses “A” or ICC “AIR” or Land Transit
  • Limited cover in respect of loss of or damage to cargo due to fire, explosion, stranding vessels, overturning or derailment or land conveyance, collision or contact with an external object, discharge at the port of distress, General Average, Sacrifice, Salvage charges and jettison. This cover can be extended to include non-delivery of cargo.
  • Depending on the risks exposed the scope of cover can be arranged to suit the needs. Although normally the terms of sale such as F.O.B. or C & F or C.I.F determine who should affect the insurance cover, the ultimate owner should ensure protecting his interest.

Protection and indemnity (P & I)

Owning or operating ships, vessels or other water crafts can involve in liabilities arising from the public or crew. The cost involved in establishing liability can be devastating particularly since the ships are expected to sail in international waters and are subjected to international jurisdiction.

Generally, the vessel owners or the charterers are exposed to legal liability arising out of loss of or damage to cargo being carried, bodily injury or death of crew due to accident or illness or related medical expenses, collision with other vessels, collision with fixed and or floating objects, pollution, removal of wreck, life salvage, fines, stowaways etc.
Most of these risks can be covered by entry into P & I clubs or by taking up suitably worded fixed premium liability policies.

Boat Insurance

Organisations that own and operate boats, yachts or pleasure crafts are exposed to the risks of losing them or getting them damaged or liabilities arising out of their use in respect to the passengers, crew, authorities, third parties etc. As a Boat or Yacht owner you are exposed to some of the following risks:

  • Loss of or damage to the yacht/craft
  • Loss of or damage to personal effects, equipment, fishing gear etc.
  • Loss of or damage to trailers and other ancillary equipment
  • Liability due to injury or death of crew and passengers
  • Liability due to injury or death of the third party connected to your boat
  • Liability due to third party property damage
  • Liability Whilst the yacht/craft being moored in marinas or public places
  • Liability Whilst the yacht/craft being towed on land
  • Liability for water skiers


All these risks can be insured under a well worded Boat Insurance policy tailored-made to specific needs by our experts.