Marine Insurance in UAE

What is Marine Insurance?

Marine insurance protects ships, cargo, terminals, and transportation against loss or damage during transit. From bulk shipments and oil & gas equipment to luxury cargo and multimodal transport, marine insurance in the UAE offers tailored coverage for importers, exporters, freight forwarders, and shipowners.

With major ports like Jebel Ali and Khalifa Port, the UAE serves as a global re-export and shipping hub, handling billions in trade annually. This makes marine insurance a critical component of risk management for businesses in the UAE.

How Does Marine Business Insurance Work?

Marine insurance coverage works by transferring the financial risk of loss or damage to an insurance provider. Businesses pay a premium, and in the event of covered incidents, they receive compensation. This ensures smooth trade flow and protection against major financial setbacks.

Common Participants:

• Exporters and Importers
• Freight Forwarders and Hauliers
• Port Authorities and Logistic Operators

Types of Marine Insurance in Dubai

Special Cargo Policy Options

• Single Transit Policy: Ideal for one-time shipments
• Open Cargo Policy: Suitable for businesses with regular shipping needs

Features of Marine Insurance

• Global Transit Coverage: You get the protection for goods and assets transported internationally, whether by sea, air, road, or rail to ensure your cargo is protected from the point of origin all the way to its final destination.
• Financial Compensation for Cargo Loss/Damage: It provides monetary compensation in case of physical damage or total loss of goods due to incidents like accidents, theft, fire, or natural calamities during transit.
• Optional Extensions for Strikes, Wars & Disasters: Marine policies can be customised with add-ons to cover losses caused by strikes, civil unrest, war-like situations, or natural disasters such as earthquakes or floods.
• Warehouse-to-Warehouse Protection: Your goods are covered from the supplier’s warehouse to the buyer’s warehouse, ensuring continuous protection throughout the shipping journey, including handling, storage, and transfer points.
• Salvage and General Average Protection: If part of your cargo is sacrificed to save the vessel or other cargo, the insurer covers shared losses (general average). Additionally, it also covers salvage charges incurred in emergency recoveries at sea.

What is Covered Under Marine Insurance UAE?

Marine insurance policies in the UAE typically cover the following —

✅ Hull Damage & Machinery Breakdown: Protection for structural damage to the ship or carrier and mechanical failures impacting the voyage.

✅ Theft, Piracy & Malicious Acts: Compensation in cases of theft, hijacking, piracy, or deliberate acts of sabotage causing cargo damage.

✅ Loss During Loading/Unloading: Covers accidental damage or complete loss of goods while being loaded onto or unloaded from the carrier.

✅ Natural Disasters (Earthquakes, Volcanic Eruptions): Protection against losses from catastrophic events that may strike while the goods are in transit.

✅ Water Damage from Sea/Lake/River Entry: Covers damage from water intrusion into the shipping container or vessel, excluding rainwater unless specifically covered.

✅ Overturning or Derailment: If a truck, railcar, or vessel overturns or derails, resulting in damaged cargo, the policy provides reimbursement.

✅ Bridge Collapse During Transit: If the bridge collapses while the goods are being transported over it, leading to loss or damage, the insurer will compensate.

✅ General Average & Salvage Charges: Covers the cargo owner’s share of losses and costs associated with protecting or recovering the entire shipment in an emergency.

✅ Alternate Delivery Due to Bad Weather: If poor weather forces unloading at a different port, the policy typically still covers cargo at the new location, subject to notification.

What is Not Covered in Marine Insurance UAE?

Marine shipping insurance has several standard exclusions. These include —

❌ Intentional Loss or Fraud: Losses caused intentionally by the policyholder or through dishonest means are not covered.

❌ Inferior or Defective Goods: Losses resulting from poor-quality products or inherent flaws in the goods themselves are excluded.

❌ Inadequate Packaging or Unfit Containers: If the cargo is damaged due to improper packing or containers unsuitable for safe transport, the insurer won’t cover the claim.

❌ Wear and Tear: Normal depreciation, rust, and corrosion are considered maintenance issues, not insurable losses.

❌ War and Political Risks: These are excluded by default but can be added through separate war-risk coverage or endorsements.

❌ Temperature-Sensitive Goods: Perishable goods that spoil due to inadequate refrigeration or heat protection are not covered unless specific precautions are declared and documented.

Marine Insurance Coverage: How Is It Calculated?

The marine insurance coverage depends on several risk-related and operational factors —

Benefits of Marine Insurance Coverage in UAE

🔸Protects Cargo: Shields your goods from loss or damage while in transit across land, sea, or air.

🔸Ensures Contractual Compliance: Many international trade agreements (like CIF, CIP) require marine insurance.

🔸Customisable Options: Choose between single shipment or annual cover, and add-on benefits as needed.

🔸Global Reach: Facilitates smooth cross-border operations by minimising financial uncertainty.

🔸Mitigates Financial Risks: Reduces potential revenue loss from cargo damage or shipping delays and protects against sudden disruptions that can halt supply chains.

Who Needs Marine Insurance in Dubai, UAE?

Marine business insurance is relevant across several sectors —

• Importers & Exporters: Protect goods in transit from supplier to customer.
• Freight Forwarders: Cover third-party liability and goods in custody.
• Shipping Companies: Insure hulls, machinery, and liability.
• Port & Terminal Operators: Cover equipment, logistics assets, and third-party claims.
• Logistics Providers: Mitigate damage risks during multi-modal transfers.
• Offshore Companies: Protect oil rigs, marine platforms, and transport assets.
• E-commerce Businesses: Secure overseas shipments to and from warehouses.

How to Get Marine Insurance in UAE?

Here’s how to start marine insurance in Dubai —

1. Assess your needs: Understand your cargo type, frequency, value, and routes.
2. Compare Providers: Look for licensed insurers or brokers with marine expertise.
3. Select Policy: Choose between single transit or open policies.
4. Review Terms: Understand limits, exclusions, and add-ons.
5. Get Quotes: Request customised quotes and negotiate if needed.
6. Finalise and Insure: Complete paperwork and start your marine insurance policy.

Why Choose Policybazaar.ae for Marine Shipping Insurance?

Policybazaar.ae is a trusted marine business insurance broker in the UAE, offering —

• Tailored cargo, hull, and liability policies
• A dedicated team of marine insurance experts
• Wide network of global insurers
• Risk assessment and advisory
• Strong claims support and client servicing

Conclusion

Marine insurance is more than just a business formality—it is a crucial safety net in the high-stakes world of international logistics. Whether you’re looking for marine cargo insurance, hull insurance, or general marine business insurance, the UAE offers ample solutions tailored to your needs.

As maritime trade continues to grow, having comprehensive marine insurance coverage ensures that your operations remain resilient and competitive. Reach out to Policybazaar.ae, a trusted provider in Dubai or across the UAE today to safeguard your maritime ventures.

Frequently Asked Questions

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