Buyers, Sellers, Import/Export merchants, Buying Agents, Contractors and Banks etc. Marine Cargo Policies cover the interest in the cargo and also extend to cover the interests of any third party who has acquired interest upon transfer of ownership, as determined by the Terms of Sale.

Cargo can be damaged on exposure to a wide variety of risks, including an accident of the vehicle carrying the cargo, damage due to jolts, jerks etc.

Loss or damage due to Inherent Vice , Delay, Insufficiency of packing, loss or damage due to financial default or insolvency of the ship owner etc.

Usually, GPA policies don't offer coverage in the following cases:

• Nature of commodity
• Method of packing.
• The Vessel (age / owner) / operator)
• Type of insurance policy (FOB, C&F, FOR, CIF).

Type of Contract	Responsibility for Insurance
Free on Board (FOB)	The seller is responsible till the goods (F.O.B. Contract) are placed on board the steamer. The buyer is responsible thereafter. He can get the insurance done wherever he likes.
Free on Rail (FOR)	The provisions are the same as in above. This is mainly relevant to internal transactions.
Cost and Freight (C&F)	Here also, the buyer’s responsibility normally attaches once the goods are placed on board. He has to take care of the insurance from that point onwards.
Cost, Insurance & Freight (CIF)	In this case, the seller is responsible for arranging the insurance upto the buyers destination. He includes the premium charge as part of the cost of goods in the sale invoice.

• Marine Insurance Specific Policy
  • The Marine Specific policy insures cargo against risks involved in a specific voyage. Normally taken for single transits.
• Marine Insurance Open Policy
  • Automatic insurance protection for a specific period of time (usually one year).
  • Good insured and premiums paid based on declaration of actual values of shipments/dispatches by insured
  • Certificates are issued for individual shipments/dispatches
• Sales Turnover Policy (STOP)
  • Basically an Open Policy in the real sense of the term. The premium for the policy is charged only on the sales turnover as declared by the insured on a periodic basis.

The normal exclusions under a standard marine policy are:

• Loss caused by Willful/Deceitful misconduct of the assured.
• Ordinary leakage, ordinary losses in weight or volume or ordinary wear and tear.
• Loss caused by inherent characteristics or nature of the subject matter. Eg; perishable commodities like fruits, vegetables, etc. may deteriorate without any accidental cause.
• Loss caused by delay, even though the delay be caused by insured risk.
• Deliberate damage by wrongful act of any person or malicious damage.