Special Cargo Insurance Policy in Marine Insurance

Marine cargo insurance offers financial assistance to cover the loss, damage, and expenses incurred by cargo while in transit. This part of the policy focuses on the cargo section of marine transport.

However, there is a part of the cargo policy that focuses on a different kind of cargo, the special cargo marine insurance. This policy focuses on special types of cargo that include goods and products that require extra protection and precaution.

Special cargo is identified as special as it faces different kinds of risk due to its weight, dimension, nature, or value. This type of cargo cannot be protected by a standard policy, so a special cargo policy in marine insurance was introduced.

To understand this in detail, here are a few special cargo examples:

• Perishable goods

• Radioactive materials, explosives, flammable liquids

• Fragile goods

• High-value products

• Heavy machinery

• Vehicles

• Oils, petroleum, gases

• Project cargo

• Humanitarian supplies

Coverage

• Special marine cargo insurance offers financial protection for special goods in transit. Coverage for special cargo policies, or voyage policies, differs from standard marine insurance.

• The special cargo policy covers the special cargo exclusively and not the vessel that carries it.

• The special cargo marine insurance is time-sensitive. The validity period is determined based on the vessel's destination or the designated time period.

• Since the financial losses incurred by special cargo are typically higher than the losses incurred by standard cargo, the total insured value is very high as well. Consequently, the premiums are also on the higher side of the radar.

• Typically, marine cargo insurance policies offer coverage for loss, damage, and expenses caused by natural disasters, man-made risks, improper packing, and inappropriate handling of the goods and cargo.

• If chosen, the policy might also offer financial provisions for third-party liability and crew and staff injury.

Read the policy carefully to verify the coverage, time span, and premium of the policy.

Eligibility

There is a criterion if one wants to purchase special marine cargo insurance that says that the entrepreneur must be dealing with special products such as oil, gases, petroleum, perishable goods, explosives, or fragile goods. Basically, any enterprise or person who is involved in transporting special goods and products by sea, air, or land can purchase marine insurance.

MLCE

Marine Loss Control Engineering (MLCE) is a feature that is a gift for special cargo or shipping of specialised products. Since such products require care, a policy must pay heed to its additional necessities.

MLCE is a special cargo service that helps an entrepreneur detect or identify any issue in the supply chain with scientific analysis of markets and oceans. It will keep sending updates that contain loss prevention guidelines, maximising profits and benefits.

MLCE is one of the best features that is backed by marine engineers and scientific studies. A limited number of insurance providers offer the Marine Loss Control Engineering facility, making it important for the policy buyer to do thorough research before picking a policy for the cargo.

Maritime trade involves uncertain, hazardous, and precarious situations. Whether it's just cargo or special cargo, both need a marine insurance policy and security.

Having comprehensive coverage for your special goods will offer peace of mind and, in worst-case scenarios, all the financial assistance you need for the restoration.

Consider safeguarding your export business adequately to protect all of its elements. Tata AIG offers an opportunity to do so through our business insurance in India for small and medium enterprises.

What is type 3 cargo?

Type 3 cargo is the ship that carries products with significant environmental and safety hazards, like coal, gases, and petroleum.

What are the 6 fundamental principles of marine insurance?

Marine insurance operates on six primary principles that include indemnity, utmost good faith, insurable interest, proximate clause, subrogation, and contribution.