You Won’t Get Marine Insurance Benefits in These X Cases

When thinking about insurance, the first thing that comes to mind is the security it provides against financial losses. Insurance isn’t limited to just life covers. Businesses like logistics providers require insurance cover to protect the goods they manufacture from being destroyed or lost, as do various other businesses. Especially when a cargo of products is transported from one place to another, the risk is substantial. This is where marine insurance plays an important role. Marine insurance is essential as shipowners and transporters can claim damages via marine insurance to cover accidents and incidents that could result in a massive loss to the carrier’s and the shipping company’s financial position.

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Of the four modes of transportation – land, rail, air, and water – water is the riskiest, because there are natural events and occurrences that can damage the cargo and the ship. Marine insurance provides a fair form of insurance cover. However, there are times when these claims do get rejected.

Here are few situations in which a marine insurance claim can be rejected:

  1. Insufficient Insurance Cover

Like any other insurance, Marine insurance has its own set of inclusions and exclusions. While the most crucial insurance features are included in all policies, you need to have additional coverage depending upon the specific nature of your business and the goods that you transport.

If you report a claim of an amount beyond what your marine insurance covers, you won’t receive that additional claim amount.

  1. Incorrect Packaging of Cargo Goods

Even though marine insurance safeguards the goods to be transported through ships, packaging them properly to avoid damage while on the route is essential. You can take the example of electronic products that are transported to different countries through cargo. If not appropriately packed before being transported, there is a relatively higher risk of damage during the transfer. Improper packaging of goods is one situation that can lead to not receiving marine insurance benefits.

You are advised to get your goods appropriately packed, even if you have bought marine insurance.

  1. Shipping Cargoes that Cannot Withstand Long Journeys

With marine insurance, you can prevent the risk of financial loss due to damage or loss of the goods during transportation. However, you cannot expect to get a claim of damages for perishable products. It would be best if you do not choose water transportation if the goods are likely to get damaged in case of a delay to reaching their destination.

To safeguard your marine insurance claim, ascertain the specific list of goods that are covered under your policy. This will avoid any misunderstanding later.

Even small errors you might make at the time of filing claims, purchasing a policy, and other such items can lead to claim rejection and ultimately to financial losses. It is, therefore, a must to choose the right marine insurance for your business.

With the aid of a good marine insurance policy, you will be compensated for everything from lost cargoes to damages to the goods. In case you do not have marine insurance, then you must buy it so you can be paid for all damages if the need arises. If you are confused about which insurer will be best for you, then you can choose an insurance broker like SecureNow.  They offer expert advice for your business based on the size of your ship and the type and volume of goods you are shipping. So, call your insurance broker right away!


Ajay Deep

Ajay Deep is a young enthusiast who Loves Chandigarh and is always eager to make this beautiful city even more beautiful. A Mechanical Engineer By Chance and Working in an IT MNC by Choice. A Writer, Photographer and a Budding Entrepreneur. A Designer, Developer and Digital Marketing Expert. In brief : A Jack of All Trades and Master of Few :) You may reach Ajay Deep at
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