Intermediate Storage Coverage in Marine Insurance

Intermediate storage cover in marine insurance is a practical solution to protect your cargo from harm when they are in a temporary storage area. It's a well-known fact that intermediate storage refers to the temporary storage of goods at a place other than the intended destination. It is often necessary due to reasons like customs clearance, congestion at the port, or vessel diversion, to know and opt for this coverage.

The intermediate storage coverage in marine insurance is a reliable shield for your goods during their intermediate storage period. It significantly reduces the financial impact if the goods suffer from deterioration, damage, or theft in storage, providing you with a sense of security.

Having an intermediate storage cover in your marine insurance policy is crucial because of several reasons. Some of these are:

Protection Between Pauses: Goods are often stored at various locations in between transit before they reach their destination. The intermediate storage cover protects the goods from perils and damages during this period.

Natural Disasters: Sometimes, cargo can be delayed due to unavoidable circumstances like storms, floods, or other natural disasters. The intermediate storage cover ensures that your goods remain protected even during such situations.

Extensive Protection: Including intermediate storage cover in marine insurance provides comprehensive protection to cargo and its goods during transit.

Peace of Mind: Having intermediate storage protection gives you a sense of security and peace of mind that your goods are protected and you are covered against financial loss, even in case of damages.

Here are the critical inclusion points of the intermediate storage coverage in marine insurance.

Warehousing: The intermediate cover will provide coverage for damage to your cargo while it is in the warehousing facility. It includes port warehouses, freight forwarder’s warehouses, bonded or customer-owned warehouses, or storage spaces. The specific location coverage will be mentioned in the insurance documents.

Inland Marine Insurance: Inland transit insurance covers goods from their initial warehouse or factory to the loading port and vice versa at the destination. This point is beneficial as it ensures goods coverage throughout the transit, even during overland transportation.

Storage Security: Intermediate storage cover includes protection for goods from the risks included in storage, such as theft, fire, goods spillage, pilferage, spoilage due to unfit temperature, etc.

Loading and Unloading: The coverage also includes protection against any damage accrued during the loading and unloading of cargo, such as breakage due to dropping, inadequate securing of goods on the carriage, damage due to hook-lifting, etc.

Marine transit insurance provides coverage against several types of damages and financial losses. However, there are specific points which cannot be covered under the insurance; these exclusions are:

Inherent Reason: If the cargo is carrying perishable goods, protection against loss will not be covered under the intermediate storage cover. It is the responsibility of the policyholder to ensure that the goods are adequately packed and kept at an adequate temperature.

Wars and Riots: Goods damaged by wars, riots, civil wars, strikes, or commotions are not covered under this coverage. You must buy additional war insurance coverage to protect your cargo from damage in such situations.

Transportation Delays: The intermediate storage cover does not include protection against damage to goods caused by delivery delays. As unforeseeable events can cause delays, you need to buy separate insurance for such situations if you want protection against them.

Packaging: Improper packaging can damage goods, and the policyholder is responsible for the packaging of the goods that protect them from damage. Thus, loss caused by poor packaging cannot be included in insurance coverage.

Intermediate storage cover is an essential feature of marine cargo insurance. It protects goods from damage when they are being transported from one mode of transport to another or are kept in a temporary storage area. This insurance coverage decreases the chances of incurring financial losses.

Tata AIG Marine Insurance is a reputable insurance provider. Along with marine insurance, Tata provides several other insurances, such as workmen compensation policy, fire and burglary insurance, group health insurance, etc., under its SME insurance policy umbrella, which are helpful for businesses.

Who can buy marine insurance?

Marine insurance is suitable for businesses engaged in the transportation of goods that are exported or imported via sea, land, or other means. It protects cargo from a wide range of damage.

What are some of the most important clauses of marine insurance policy?

Some of the most important clauses of marine insurance to look out for are the ‘At’ and ‘From’ Clause, the Change of Voyage Clause, the Jettison Clause, the Valuation Clause, and the Memorandum Clause.