Marine Cargo Insurance covers physical damage or loss of goods whilst in transit by land, sea, or air between the points of origin and destination. Unfortunately, many international shipments move uninsured as importers/exporters view insurance as an unnecessary expense involving extra administration.
With the rise of cargo ship accidents worldwide importers and exporters and cargo handlers are exposed to countless financial risks when they do not insure their international shipments. However, it is unfortunate that most importers/exporters are not well versed with the importance of marine cargo insurance policy in India and consider it just an extra expense. Hence, it is critical to understand that insurance costs way less than losing all your goods in an unfortunate circumstance and having to pay a huge lump sum amount for that.
Trying to recover losses from carriers is difficult and time-consuming and is unlikely to cover the true associated cost due to carrier’s limited liability and package limitation clauses. “All Risks” insurance relieves companies of their financial exposure from physical loss or damage to their goods while in transit since carriers have limited liability. The best way to protect your financial interest is with the appropriate marine insurance.
During tough economic conditions exporters, importers and cargo handlers have the tendency to shop around for cover only using price as a determining factor. Business should rather focus on what the policy covers instead of basing their decision solely on price. RK can arrange extremely competitive Ocean, Air and Inland Cargo Insurance with door to door coverage through all the insurance companies in India. RK has operations at 2 convenient locations handling more than 300 CHAs and FF clients.
RK provides exceptional expertise and service to a broad portfolio of clients, and the specialist Maritime Division handles management of claims, covering marine and general cargo liability. At Rkinsure you can get the best policies for cargo insurance in India.
- Marine Cargo Policies
- Duty Insurance
- Empty Containers Policies
- MTO and Transport Liability Policies.
- Online Policy Issuance
- Policy on mail in an hour
- Convenient location at Fort and CBD Belapur
- Best Rates
- Speedy and hassle-free claim settlement
- Loyal and satisfied marquee customers.
- Service history of more than 12 years.
Who Can Insure
Owners Goods (importers & exporters)
Bankers of goods in transit/shipment
On instruction from the owner of the goods below agencies can also insure:
- Freight Forwarder
- In Transit Warehousing
- Ship Agents
- Clearing and Forwarding Agents
- Custom House Agents
- Packing and Consolidating Agents
Clearing and Forwarding Agents :
If you aren’t discussing cargo coverage with importers and exporters, you’re missing revenue and relationship opportunities.
Save time and insure shipments with RKinsure
- Air cargo carriers
- Importers and exporters
- Ocean cargo carriers
- Customs brokers
- Logistics providers
- Project managers
- Wholesalers and retailers
- Freight forwarders
- Multinational companies
Why would a company need Ocean Marine insurance?
Example: A cargo of linens arrives at its final insured destination one evening. The next morning when the warehouse personnel arrives to unload the cargo, they discover the vehicle containing the linens is gone. The cost of the lost linens totals up to 10lacs+. We respond to this loss.
5 Reasons You Need Marine Insurance
If you’re an exporter who has not been paid for the goods at the time of shipment, or an importer who has paid for all or part of the goods prior to receiving them, you run the risk of suffering a financial loss if the goods are lost or damaged during transit.
In the event of an emergency, a cargo ship may voluntarily sacrifice part of its cargo. This is a principle of maritime law termed ‘General Average’, according to which all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole. In this example, the carrier will not be responsible for your share of General Average, only being responsible for any loss or damage to goods due to their own negligence while the goods are in their custody.
“Without cargo insurance, your cargo is likely to be held hostage for payment of those charges. Simply said, without insurance, you stand to gain nothing or next to nothing at most.”
– Klaus Lysdal
The carriers, by law, are not responsible for many common causes of loss that occur in transit (for example, acts of God, general average, etc.). And, even if they are liable, carriers’ liability in the event of a loss is limited – either by contract in the bill of lading or by law. In most cases, you will only recover cents on the dollar from the carrier.
- Sea Carrier’s Legal Liability
The Carriage of Goods by Sea Act (COGSA) typically mandates a $500 per “package” limitation on liability.
- Indirect Air Carrier’s Legal Liability
The Montreal Convention governs the limits of liability for international carriers. An international air carrier’s liability for damage or loss of cargo is limited to 19 SDR per kilo (approx. $26/ kg) of the cargo’s gross weight. When moving your goods on a No Value Declared (NVD) or Value Declared for Carriage (VDC) basis you are not purchasing any type of insurance coverage for loss or damage to your goods. By not purchasing insurance you are simply accepting the standard carrier’s liability of 19 SDR (approx. $26/ kg).
- NVOCC Legal Liability
The Hague/COGSA Act governs the limits of Liability for Non-Vessel Operating Common Carriers like DACHSER USA Air & Sea Logistics Inc. COGSA (The Carriage of Goods by Sea Act) limits vessel owner’s liability to $500 per shipping unit. By not purchasing insurance you are accepting the carrier’s standard liability of $500 per unit.
- Warehouseman/Motor Carriers Liability
The responsibility of warehouseman is that of reasonable care and diligence as required by law. However, by not purchasing insurance you are accepting the carrier’s standard liability of $50 per shipment or $0.50 per pound/ piece, whichever is greater.
- India -Carriage by Road Act, 2007
The liability of transport carriers in case of damage or loss of goods will be limited to 10 times the freight charges as per rules framed by the Ministry of Road Transport and Highways under the newly enacted Carriage by Road Act, 2007.
Relying on the buyer’s or seller’s insurance may be a viable option, but you must be satisfied that the insurance has in fact been purchased and that the insuring terms, valuation, and limits provided by each insurer on each shipment are adequate to meet your needs.
And, if there is a claim dealing with a foreign insurance company, perhaps in a different language, it can be time-consuming and frustrating. If there’s a claims issue, you’re often dealing with courts in a foreign country.
Your sales contract may obligate you to provide ocean cargo insurance to protect the buyer’s interest or their bank’s interest. This is especially true when selling goods CIP or CIF.
Failure to do so cannot only subject you to monetary loss if there is loss or damage to the goods, but non-compliance with the terms of your contract with the buyer can lead to loss of sales and legal problems.
When your goods are being transported from one country to another, it is important to ensure that you have import-export insurance as well as inland transit insurance for your goods and cargo. At the same time insuring your containers is also essential. Rkinsure is the right choice for all your marine insurance needs. We provide you with insurance that safeguards and covers your transportation cargo.