Marine Cargo Insurance in Chennai

Marine Cargo Insurance

At Alliance Freight Express, we understand the importance and value of every shipment we handle across different modes of transport. That is why we recommend cargo insurance to our customers as essential protection against transport risks — for air freight, sea freight, and road cargo from Chennai.

This marine cargo insurance represents an essential added value that completes our service cycle. Our quality service and international presence allows us to negotiate both comprehensive and cost-effective cargo insurance coverage. We work only with certified international carriers and our team of trained professionals is always available to answer questions about cargo insurance of any type.

While Alliance Freight Express arranges transportation of your goods, cargo insurance provides the owner financial protection against all risks of physical loss or damage from any external cause. The insurance provides risk coverage for ocean, air and road freight shipments. In the event of loss or damage, insurance surveyors are available for responsive and thorough inspections, and our claims handling ensures quick, fair, and complete settlements. Cargo insurance gives our customers complete peace of mind for every shipment.

Types of Marine Cargo Insurance Policies

We help you select the right policy based on your cargo type, shipment value, and risk profile:

All-Risk Cargo Insurance (Institute Cargo Clause A)

The most comprehensive cargo insurance policy available. Covers all risks of physical loss or damage from any external cause, except specifically excluded risks such as inherent vice, deliberate damage, or nuclear risks. Recommended for high-value goods, electronics, machinery, and commercial cargo where maximum protection is required.

Named-Perils Insurance (Institute Cargo Clause B)

Covers a defined list of specific risks including fire, explosion, vessel sinking or grounding, collision, earthquake, lightning, and water entry into vessel or container. More affordable than Clause A but provides narrower coverage.

Basic Named-Perils Insurance (Institute Cargo Clause C)

The most basic level of coverage — covers only major catastrophic events such as fire, explosion, vessel sinking, stranding, or collision. Suitable for low-value bulk cargo where the cost of Clause A or B is not justified.

Single Transit Policy

Insurance covering one specific shipment from origin to destination. Best suited for occasional shippers or high-value one-time consignments.

Open Cover / Floating Policy

An ongoing policy covering all shipments over a defined period, typically used by regular exporters and importers. Each shipment is declared under the open cover as it is shipped, providing automatic coverage without needing a new policy for each consignment.

What Does Cargo Insurance Cover?

Covered Under All-Risk Policy (Clause A)

• Physical loss or damage due to accidents, collisions, rough handling
• Theft and pilferage during transit
• Water damage from seawater, rainwater, or flooding
• Fire or explosion damage
• Damage during loading, stowage, or unloading
• General average contributions (when cargo is sacrificed to save the vessel)
• Jettison (cargo thrown overboard to lighten a vessel in distress)

Typically Not Covered (Standard Exclusions)

• Inherent vice — natural deterioration or loss in quality of the goods themselves
• Delay — financial loss caused by delayed delivery
• Deliberate damage by the insured or their employees
• War and strikes (available as add-on coverage)
• Nuclear or radioactive contamination
• Inadequate or improper packing by the shipper

Why Cargo Insurance is Important — Carrier Liability Limits

Many exporters and importers assume that shipping lines and airlines are fully liable if their cargo is lost or damaged. This is a common and costly misconception.

Under international conventions, carrier liability is strictly limited:

• Sea freight (Hague-Visby Rules): Liability limited to approximately USD 2.50 per kg or 666.67 SDR per package — whichever is higher. For a 500kg shipment worth ₹20 lakhs, the carrier may pay only ₹75,000.
• Air freight (Montreal Convention): Liability limited to approximately 22 SDR per kg (~USD 30/kg). For a 100kg air shipment worth ₹10 lakhs, the carrier may pay only ₹2.4 lakhs.
• Courier (DHL / FedEx / Aramex): Standard liability is typically USD 100 per shipment unless declared value is specified and additional insurance purchased.

Cargo insurance bridges this gap — ensuring you receive the full declared value of your goods in the event of loss or damage, regardless of the carrier's limited liability.

How to File a Cargo Insurance Claim

1. Report immediately — Notify Alliance Freight Express and the insurer as soon as loss or damage is discovered. Delayed reporting can affect your claim.
2. Protect the cargo — Do not dispose of damaged goods before survey. Preserve the cargo and packaging exactly as found.
3. Obtain a survey report — An independent insurance surveyor will inspect the damage and prepare a report. We coordinate this for you.
4. Gather documents — Commercial invoice, packing list, bill of lading or airway bill, insurance certificate, survey report, and photographic evidence.
5. Submit claim — We assist in preparing and submitting the complete claim to the insurer for fast and fair settlement.

Marine Cargo Insurance – FAQs

Is cargo insurance mandatory for shipments from Chennai?

Cargo insurance is not legally mandatory for most shipments, but it is strongly recommended. Carriers limit their liability under international conventions — often far below the actual cargo value. Without insurance, you bear the full financial risk of any loss or damage during transit.

What is the difference between All-Risk and Named-Perils cargo insurance?

All-Risk (Clause A) covers all causes of loss except specifically excluded risks — the broadest protection available. Named-Perils (Clause B or C) covers only specific listed risks. All-Risk is recommended for most commercial shipments, especially high-value goods.

How is cargo insurance premium calculated?

Premium is typically calculated as a small percentage of the cargo's insured value (CIF value + 10% profit margin is standard). The rate varies based on commodity type, packaging, route, mode of transport, and policy type. Contact us for a specific rate for your shipment.

What is the insured value for cargo insurance?

The standard insured value is CIF (Cost + Insurance + Freight) + 10%. This means you insure not just the cost of goods but also the freight paid and a 10% margin to cover profit and incidental expenses. This is the internationally accepted basis for cargo insurance valuation.

Do you cover cargo insurance for both exports and imports from Chennai?

Yes. We arrange cargo insurance for both export shipments from Chennai and import shipments into Chennai — for air freight, sea freight, road cargo, and courier parcels of all types.

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