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Export Stage 8: marine cargo insurance, matched to your term and your credit

Export guide · Stage 8 of 10 · The Cover Trail

Export Stage 8: marine cargo insurance, matched to your term and your credit

Five stations between customs clearance and a policy that does its job. Find out whether you insure, decide value and cover, get the certificate right, know the claim steps and confirm before sailing. Clear each hurdle, earn each badge, and finish as a Risk Guardian. Prefer reading? Use the plain guide button.

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5 stationsAbout 8 minutesTap a station, swipe the cardsClear a hurdle, earn a badge

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Cover Cadet

0 of 5 stations0 XP

Tap a station to open it. Clear each hurdle to earn its badge and unlock the next.

Station 1 of 5

Find out whether you must insure, under your Incoterm

Station 1 of 5 · Badge: Risk Reader

Find out whether you must insure, under your Incoterm

Under CIF and CIP the seller must insure. Under FOB, FCA and EXW the buyer decides.

What you do

  1. CIF, CIP: you arrange cover
  2. FOB, FCA, EXW: the buyer arranges it
  3. Cover named in the order or letter of credit
  4. Risk passes at a named point

Keep these ready

  • Order with the Incoterm
  • Letter of credit, if used

Watch out

  • Assuming the buyer insured when the term says you must.
  • A policy that does not match the letter of credit.

Pro tip

Under a letter of credit, match the insurance wording to the credit exactly. Mismatches get documents refused.

Full details for this station

Read your Incoterms term and the order or letter of credit. They decide who insures, and for what.

How to do it

  1. Under CIF and CIP the seller must obtain insurance, at the minimum level in the rules, naming the buyer as the one who can claim.
  2. Under FOB, FCA, FAS and EXW the buyer arranges cover. You may still insure your own risk until the goods pass to the buyer.
  3. Check the order and any letter of credit. They may ask for specific cover.
  4. Check where your risk ends under the term.
  5. Decide before the goods leave your premises.

Documents to keep ready

  • Order with the Incoterm
  • Letter of credit, if used

What the documents must show

Insurance requirement
One line from the order or letter of credit: who insures, what cover, what value, in whose favour.

Time and cost

  • Decision: when you accept the order.

Where people get stuck

  • Assuming the buyer insured when the term says you must.
  • A policy that does not match the letter of credit.
Station 2 of 5

Decide the value and the type of cover

Station 2 of 5 · Badge: Cover Calculator

Decide the value and the type of cover

Follow the order or letter of credit. Otherwise ask your insurer.

What you do

  1. Insured value, as the buyer or credit requires
  2. Voyage: from where to where
  3. Type of cover
  4. Currency

Keep these ready

  • Invoice
  • Freight details
  • Insurance proposal

Watch out

  • Value or currency differing from the credit.
  • Voyage described incompletely.

Pro tip

Ask your insurer to read the letter of credit before they draft the certificate.

Full details for this station

A letter of credit often fixes the value and the cover. Check before you ask for a quote.

How to do it

  1. Check whether the order or credit states the insured value and the currency.
  2. If not, ask your insurer what is usual. The insured value commonly includes the invoice value plus a margin.
  3. Describe the voyage fully, including inland legs.
  4. Tell the insurer what is special about the goods.
  5. Ask what the policy excludes.

Documents to keep ready

  • Invoice
  • Freight details
  • Insurance proposal

What the documents must show

Insurance proposal
Insured, goods, packing, value, voyage, vessel, cover required.

Time and cost

  • Quote: hours to a day.

Where people get stuck

  • Value or currency differing from the credit.
  • Voyage described incompletely.
Station 3 of 5

Get the policy or certificate in the right form

Station 3 of 5 · Badge: Certificate Keeper

Get the policy or certificate in the right form

Names, dates, voyage and wording must match your other documents.

What you do

  1. Insurer or licensed intermediary
  2. Policy or certificate
  3. Endorsed as required
  4. Copies in the document set

Keep these ready

  • Insurance certificate
  • Draft Bill of Lading

Watch out

  • Date of the policy later than the Bill of Lading, when the credit requires otherwise.
  • Voyage not matching.

Pro tip

Ask for the draft certificate before the vessel sails.

Full details for this station

Insurance in India is regulated by the Insurance Regulatory and Development Authority of India (IRDAI). Use an insurer or licensed intermediary.

How to do it

  1. Place the cover with an insurer or a licensed intermediary.
  2. Get the policy or certificate and read it.
  3. Check names, goods, value and voyage against the invoice and the Bill of Lading.
  4. If the credit asks for endorsement or assignment, arrange it as the credit says.
  5. Keep copies in the document set.

Documents to keep ready

  • Insurance certificate
  • Draft Bill of Lading

What the documents must show

Certificate check
Tick each item: names, goods, value, voyage, dates, endorsement.

Time and cost

  • Issue: a day.

Where people get stuck

  • Date of the policy later than the Bill of Lading, when the credit requires otherwise.
  • Voyage not matching.
Station 4 of 5

Know the claim steps and who claims

Station 4 of 5 · Badge: Claim Ready

Know the claim steps and who claims

Under CIF the buyer usually claims, but you help with papers.

What you do

  1. Tell the insurer promptly
  2. Survey
  3. Papers to keep
  4. Who claims under your term

Keep these ready

  • Policy
  • Invoice and packing list
  • Bill of Lading
  • Photographs

Watch out

  • Slow replies to the buyer.
  • No packing records.

Pro tip

Keep photographs of loaded containers. They help the claim.

Full details for this station

Be ready to help your buyer. A smooth claim keeps a good customer.

How to do it

  1. Keep a copy of the policy and the claim contact.
  2. If the buyer reports a loss, ask for details and photographs.
  3. Support the survey with the papers: invoice, packing list, Bill of Lading.
  4. If you hold the risk, notify the insurer and the carrier promptly in writing.
  5. Keep records of packing and loading.

Documents to keep ready

  • Policy
  • Invoice and packing list
  • Bill of Lading
  • Photographs

What the documents must show

Claim support note
Short email to the buyer: attached papers, policy number, insurer contact.

Time and cost

  • Respond the same day.

Where people get stuck

  • Slow replies to the buyer.
  • No packing records.
Station 5 of 5

Confirm the cover before the vessel sails

Station 5 of 5 · Badge: Cleared to Sail

Confirm the cover before the vessel sails

Check everything once more.

What you do

  1. Certificate matches the Bill of Lading
  2. Premium paid
  3. Copies in the document set
  4. Buyer told, if needed

Keep these ready

  • Certificate
  • Draft Bill of Lading

Watch out

  • Wrong vessel name.
  • Premium unpaid.

Pro tip

Use one checklist for all your shipping documents.

Full details for this station

A mismatch found after sailing costs time. Find it now.

How to do it

  1. Compare the certificate with the draft Bill of Lading.
  2. Check the premium is paid.
  3. Put the certificate in the document set for Stage 10.
  4. Tell the buyer the cover is in place, if the order asks.
  5. Move to Stage 9: goods shipped on board.

Documents to keep ready

  • Certificate
  • Draft Bill of Lading

What the documents must show

Final check
Name, goods, value, voyage, date, endorsement.

Time and cost

  • Check: an hour.

Where people get stuck

  • Wrong vessel name.
  • Premium unpaid.

Run complete

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Words used on this page

Incoterms: Trade terms of the International Chamber of Commerce (Incoterms 2020). They say who pays for transport and insurance, and who bears risk, at each point.

Questions people ask

Is marine insurance compulsory for exporters?

Not by general law, but your Incoterm, order or letter of credit may require it. Without cover you bear the loss.

Does the buyer's cover protect me?

Only for the risk that the buyer bears. Ask what is covered.

Is this legal advice?

No. It is practical guidance. Policy terms vary, so read your own policy.

Can you help me choose the cover?

Send us the order or letter of credit. We will tell you what to ask your insurer.

Want help matching cover to your letter of credit?

Send us the order or the credit. We will tell you what to ask your insurer. It is just a call and a message away.

Message us on WhatsAppCall +91 98230 14118

Office (backup): +91 93733 11838

← Stage 7: Customs clearanceStage 9: Goods shipped on board →

Last checked: 12 November 2026. Incoterms are the International Chamber of Commerce rules (Incoterms 2020). Insurance in India is regulated by the Insurance Regulatory and Development Authority of India (IRDAI). Policy terms vary, so read your own policy.

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