Page 49 - The Insurance Times October 2025

Insurance policy copy Air cargo = Mishandling, high-value theft.
Why? Missing documents often cause unnecessary de- Road/rail cargo = Accidents, fire, theft.
lays or outright rejection of claims.
Tip: Ensure your policy specifically covers the chosen
7. Work with Reputed Insurers or Brokers route and transit mode.
Engage insurers with: 5. Don’t Assume Storage is Covered
A strong marine insurance portfolio.
Many policies cover goods only while in transit, not while
Experience in handling complex cargo claims. stored at ports or warehouses.
International reinsurance backing. Add a Storage Clause if your cargo may be held
Why? Experienced insurers can offer tailored advice and temporarily in such locations.
ensure quick claim resolution. Brokers can negotiate 6. Don’t Overlook International Trade Rules
better terms and explain policy intricacies. (INCOTERMS)
INCOTERMS (FOB, CIF, etc.) decide who bears respon-
Don’ts (Things to Avoid) sibility for insuring cargo.
1. Don’t Underinsure to Save Premium FOB (Free on Board): Buyer arranges insurance.
Insuring for less than the actual value might save a few CIF (Cost, Insurance, Freight): Seller arranges insur-
rupees but exposes you to huge losses later. ance.
Example: Cargo worth ?50 lakh insured for Rs. 30 Tip: Always clarify responsibility in your contracts to
lakh -- claim will be reduced proportionately under avoid uninsured exposures.
the Average Clause.
7. Don’t Forget Renewal or Extension
2. Don’t Ignore Packaging Standards If transit takes longer than expected (e.g., vessel de-
Claims are often denied if goods are damaged due to lays), your coverage may expire.
poor packaging (e.g., using ordinary cartons for delicate
Always request an extension before policy expiry.
electronics).
Conclusion
Tip: Follow industry-specific packing norms and docu-
ment it with photographs. Purchasing a marine cargo policy in India requires careful
planning, honest disclosures, and attention to detail. The
3. Don’t Delay Claim Intimation
Do’s—choosing the right cover, declaring correct details,
Marine policies usually require immediate notice of loss/
ensuring adequate sum insured, and maintaining proper
damage.
documentation—will secure your cargo and your finances.
Delay = Suspicion -- Insurer may argue damage hap- The Don’ts—underinsurance, poor packaging, delayed inti-
pened outside coverage.
mation, and neglecting storage or route risks—can lead to
Always inform insurer and surveyor immediately on costly disputes or denied claims.
discovering a loss.
A well-structured marine cargo policy isn’t just a regulatory
4. Don’t Overlook Route & Mode of Transit Risks formality—it is the lifeline that protects your goods
Risks differ for: and business reputation in uncertain global trade environ-
Sea cargo = Piracy, container losses, port delays. ments.

HDFC Life Insurance has partnered with Avanse Financial Services to provide tailored insurance solutions to educa-
tion loan customers, aiming to offer financial protection to students and their families. Under this collaboration,
HDFC Life will offer customised credit protect policies to cover outstanding education loans in case of unforeseen
circumstances. The initiative is designed to ensure that financial obligations do not become a burden on family
members in the borrower's absence. According to both companies, the partnership reflects a shared commitment
to holistic financial planning, especially for aspiring students pursuing higher education in India and abroad. The
credit-linked insurance will be seamlessly integrated with loan products offered by Avanse, providing both peace of
mind and added value to customers. This collaboration is expected to enhance the safety net around educational
borrowing, addressing an essential gap in the market.

The Insurance Times October 2025 45