Marine Insurance – Open Cover is the insurer's continuous cargo protection arrangement for businesses with frequent shipments, especially export or import. Unlike Open Policy's fixed, reducing sum insured, Open Cover runs against a cash deposit account you maintain — every declared shipment is debited from that balance, and a stamped policy or certificate is issued per declaration as evidence of cover.
the insurer Marine· Open Cover
"The open cover is a contract for 12 (twelve) months which gives the Insured continuous protection to cover large number of shipments/despatches and the premium of which would be adjusted from the respective cash deposit account maintained by the Insured." — the insurer's own product page. Open Cover is built for exactly the kind of business that ships constantly and can't realistically negotiate a fresh policy for every dispatch.
the insurer's own page confirms Open Cover frequent dispatches "especially for export or import" — distinguishing it from Open Policy, which the insurer positions more toward transit within India.
Cross-Border FocusRather than a single depleting sum insured figure, Open Cover debits premium from a cash deposit account you maintain — a fundamentally different financial mechanic from Open Policy's reducing balance.
MechanicWhile the Open Cover agreement itself isn't stamped, a stamped policy or certificate is issued each time you declare a shipment — giving you a legally valid document for that specific consignment.
Process"Under an open cover Insured always maintains sufficient balance in cash deposit account which enable them to send the declaration for issuing policy/certificate even after a later date." — the insurer's own page, offering flexibility in timing.
FlexibilityYou commit to declaring every qualifying shipment without exception, and the insurer commits to accepting every declared shipment (subject to sufficient account balance) — a genuinely two-sided arrangement.
Structure"Frequent dispatches/shipments can be covered instead of taking individual policy for each shipment" — the insurer's own page. The administrative relief is the entire point of the product.
Administrative Reliefthe insurer's Own Marine Product Range
Open Cover is the most distinct of the insurer's three core cargo products in terms of legal structure — it isn't itself a stamped policy, and it doesn't run on a depleting sum insured the way Open Policy does.
Not a policy and not stamped. Runs against a maintained cash deposit account; no fixed sum insured, but SCL (Single Carrying Limit) and PBL (Per Bottom Limit) apply. Especially suited to frequent export/import shippers. A stamped policy/certificate is issued per declared shipment.
Unstamped Agreement, Cash Deposit BasisItself a stamped, legally enforceable document. Runs against a fixed, large sum insured that reduces with each declared shipment (reducing balance method), ceasing at 12 months or sum insured exhaustion, whichever first. Typically positioned for transit within India.
Stamped, Reducing Sum InsuredCovers one single voyage or shipment only — issued before that voyage begins and ceasing once it's complete. No ongoing relationship, no declarations, no deposit account — just one shipment, one policy.
Single Shipment OnlyA related, complementary cover addressing customs duty paid on cargo — available on an Open basis with its own one-year period, separate from your main Open Cover arrangement.
Customs Duty, Related Productfrom
Maintain sufficient balance for declarations
Export/import dispatch occurs
Mandatory — no exceptions allowed
Debited from deposit account
| Element | Confirmed Mechanic |
|---|---|
| Contract duration | 12 months |
| Sum insured | None fixed — issued with SCL (Single Carrying Limit) / PBL (Per Bottom Limit) instead |
| Premium payment | Adjusted/debited from the cash deposit account maintained by the insured |
| Declaration obligation | Mandatory for every shipment within the contract's scope — no selective declaration permitted |
| Insurer's obligation | Bound to accept all declared shipments, provided sufficient cash deposit account balance |
| Document issued | A stamped policy or certificate per declared shipment — distinct from the (unstamped) Open Cover agreement itself |
| Declaration timing | Possible even after a later date, provided sufficient deposit account balance is maintained |
"It is not open to him to run his own risk on certain shipments/despatches or to insure them elsewhere." This is one of the most important — and most legally binding — features of Open Cover. Once you've entered the arrangement, you cannot selectively decide to leave some shipments uninsured (to save premium) or insure specific ones with a different insurer. Every shipment falling within the contract's scope must be declared under this Open Cover. Treat this as a genuine compliance obligation, not a flexible guideline.
from
from
All Risks basis
"Basic Cover"
"The following risks are covered on paying additional premium" — the insurer's own page confirms War and Strikes/Riots/Civil Commotion as available extensions, consistent with the treatment across the insurer's other marine products.
Optional Extension"Additional storage cover before delivery of cargo at the final destination" —, the insurer's own page, available as a further enhancement.
Optional Extension"For more details regarding coverage, please refer to the clauses" — the insurer's own page directs to the full Institute Cargo Clauses wording for complete coverage specifics. Please request the complete clause wording, and your specific SCL/PBL limits, from Probitas before finalising your Open Cover.
Industry-Standard Marine Cargo Exclusion Pattern — Confirm the insurer's Exact MIOC Wording
Confirmed exclusion patterns common across marine cargo cover generally, consistent with the standard Institute Cargo Clauses framework underpinning ICC (A) and (B).
Loss attributable to the insured's own wilful misconduct is excluded across both ICC (A) and (B) clause levels.
Ordinary leakage, loss in weight/volume, or wear and tear inherent to the goods themselves is excluded.
Damage caused by inadequate or unsuitable packing for the cargo and journey type is generally excluded.
As noted in the coverage section, these require a separate add-on at additional premium and are not automatically included.
A standard market-wide exclusion across all marine cargo cover, including Open Cover.
A shipment that should have been declared under the Open Cover's scope but wasn't is unlikely to be covered, and may also breach the mandatory-declaration obligation central to the contract.
Please request the insurer's complete, MIOC-specific exclusion wording from Probitas before finalising your Open Cover — the above reflects confirmed patterns common to this product category.
Standard Marine Cargo Claims Process, IRDAI Surveyor Regulations
Since cover under Open Cover depends on the specific shipment having been declared and a stamped policy/certificate issued for it, your first step in any claim is confirming that declaration is on record.
As soon as loss or damage is discovered or suspected, notify the insurer — prompt notification is essential to preserving recovery rights and a smooth claims process.
For claims above the prescribed threshold, an IIISLA-licensed marine cargo surveyor is appointed within a regulated timeframe under the IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015.
Typically required: claim form, the specific declaration/certificate issued for that shipment, Bill of Lading, commercial invoice, survey report, and carrier correspondence.
The claim is assessed against the specific declared shipment's value and the cover terms (ICC A or B, plus any SCL/PBL limits) applicable to that particular declaration.
Call Probitas at 022 4302 0000 for the insurer's exact MIOC claims intimation timeline and documentation checklist — and make sure your declaration record-keeping is airtight, since a claim's validity depends directly on the shipment having been properly declared under your Open Cover.
Marine Insurance – Open Cover — Frequently Asked Questions
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By submitting you agree to our Privacy Policy and Terms & Conditions. Marine Insurance – Open Cover (MIOC)· IRDAI Licensed. For businesses with frequent shipments, especially export or import. A 12-month continuous protection contract, not itself a stamped policy; premium adjusted from a cash deposit account maintained by the insured. No fixed sum insured — issued with SCL (Single Carrying Limit) and PBL (Per Bottom Limit) instead. Insured is bound to declare every shipment within the contract's scope; insurer is bound to accept all declared shipments subject to sufficient deposit account balance. A stamped policy or certificate is issued per declared shipment. Coverage options: ICC (A)/ITC (A) All Risks, or ICC (B)/ITC (B) Basic Cover (damage due to conveyance accident and fire). War, SRCC, and additional storage available as extensions at additional premium. All terms per the insurer's MIOC policy document; confirm exact wording, SCL/PBL limits, and deposit account setup directly with Probitas/the insurer before purchase. Probitas Insurance Brokers Pvt. Ltd.· IRDAI Lic. No. 528.