Floating Policy in Marine Insurance

A floating policy in insurance is also known as an open marine policy. It is a type of policy which protects several shipments/consignments in transit under a single insurance policy for a period of one year. It eliminates the hassle of acquiring a separate policy for each shipment. Under such an insurance policy, the details of each shipment is not provided while buying the policy.

You must declare the details of each vessel or shipment when they leave during the policy period. A floating policy is best suited for those traders who dispatch large volumes of consignments. Since every shipment is at a similar level of risk during transit, an open policy protects all shipments during the policy period.

A floating policy in marine insurance example is, a trader sending out ten shipments in a year and opting for a floating policy. Here, all ten shipments will be covered under this single policy for a period of 12 months.

Features of Floating Marine Policy

• It protects multiple shipments/vessels under a single policy.

• Once the policy tenure begins, all the shipments moving out are automatically covered under the policy till the sum insured is exhausted.

• A single annual premium covers all the vessels and journeys.

• It covers unlimited voyages during the policy period.

• The shipment value and details must be declared before they set out.

Comprehensive Cover

A floating policy offers comprehensive coverage, by covering multiple shipments under a single policy. It offers coverage to all the shipments during the period until the sum assured is exhausted. Therefore, businesses get a wider coverage from marine risks simply by declaring the shipment before it sets out on the voyage.

No Need for Multiple Policies

When you buy a floating policy for your shipments, you are relieved from the hassle of buying a new policy for each vessel. It saves you a lot of time, energy and paperwork as the policy will cover all your shipments within a certain period.

Offers Continuous Coverage

Under a floating policy, you get continuous coverage for all your consignments for a period of one year. Therefore, you can have peace of mind about protecting your shipment during that period.

Offers Flexibility

Vessel owners get added flexibility of adding multiple shipments/vessels. A floating marine insurance policy protects all the shipments and is not limited to a single vessel. Therefore, one can declare the details of any vessel, and it will be adequately covered under the policy.

A floating marine insurance policy is the best choice if you use the marine channel frequently for transporting your consignments. Unlike the regular marine insurance which is specific to a single vessel or shipment, a floating policy offers protection to all the shipments during the period of one year.

Since huge investments and large amounts of goods are involved, you must choose a trustworthy provider for your marine policy. Tata AIG offers marine insurance policy with various types of coverage to your cargo. It protects the shipment from dangers of the sea, air, and land, ensuring that your goods are safe in transit.

Whether you deal with local or international shipments, you can opt for Tata AIG’s cargo insurance policy. You get various types of policies, such as all-risk cargo coverage, marine cargo insurance, named perils coverage, etc. You get affordable and efficient marine protection with simple buying, renewing and claiming options with Tata AIG.

What are the exclusions of marine insurance?

Some exclusions of marine insurance are:

Loss due to war, strikes, acts of terrorism, etc.

Loss due to wear and tear of the vessel.

Loss due to criminal acts of the employees of the policyholder.

Loss from destruction or seizure by the government.

Unseaworthiness of the vessel.

Improper packaging of the cargo.

Who needs a marine insurance policy?

Marine insurance is required by:

Ship owners

Traders shipping goods overseas

Freight forwarders

Marine contractors

Shipping corporations

Cargo owners