Marine Insurance – Open Policy is the insurer's annual cargo cover for traders with regular dispatches — issued for 12 months against a sufficiently large sum insured, which is adjusted down against the value of each cargo shipped using a reducing balance method, until either the year ends or the sum insured is exhausted, whichever comes first.
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"The open policy is issued to cover several shipments/despatches for the period of 12 (twelve) months based on the Sum Insured sufficiently large and adjusted against the value of each cargo in a reducing balance method." — the insurer's own product page. "Traders having regular despatches are interested to take the benefit of the Open Policy." —, directly on the insurer's site.
Unlike arranging a fresh Specific Policy for every shipment, Open Policy is a single stamped, legally enforceable document covering an entire year's worth of regular dispatches.
Administrative EfficiencyYour sum insured automatically reduces with each declared shipment's value — no need to renegotiate cover or arrange new paperwork for each individual dispatch within the year.
MechanicIf your actual shipment volume comes in lower than expected and your sum insured isn't fully exhausted by year-end, the premium on the unadjusted (unused) portion is refundable.
Refund-EligibleIf your trade volume runs higher than planned and your Open Policy's sum insured is running low, you can top it up by paying additional premium to reinstate the cover — rather than being left exposed mid-year.
Reinstatement AvailablePer the insurer's own marine product framing, the Open Policy is positioned for transit of goods within India — complementing Open Cover, which is typically used for the import/export side of the business.
Domestic FocusEven with a large overall sum insured, a separate "limit per vessel" (per bottom) typically applies — you can't put your entire year's sum insured on a single shipment or vessel and expect full coverage for that one consignment.
Risk Concentration Controlthe insurer's Own Marine Product Range & Industry-Standard Comparisons
the insurer offers several distinct marine cargo structures. Open Policy is specifically the annual, sum-insured-based, stamped-document option — here's how it compares to its closest siblings.
A stamped, legally enforceable document. Issued for 12 months against a large sum insured, reduced by each declared shipment's value (reducing balance method). Ceases at year-end or when sum insured is exhausted, whichever comes first. Best suited to regular, predictable domestic dispatches.
Stamped, Sum-Insured-Based"The open cover is not having any Sum Insured but issued with SCL/PBL along with Terms of Cover" —, the insurer's own page. Not itself a stamped policy; specific policies/certificates are issued per declared shipment, debited against a maintained cash deposit account. Typically used for import/export.
Unstamped Agreement, No Fixed SICovers a single voyage or shipment only — issued before that one voyage begins and ceases when it's complete. No ongoing relationship or annual commitment; best for occasional shippers rather than regular traders.
Single Shipment OnlyA related but distinct cover, addressing customs duty paid on cargo, available on an Open basis with a one-year period — complementary to, not a substitute for, your main cargo cover under Open Policy.
Customs Duty, Related Productfrom
the insurer's Own Wording, Cross-Referenced with Industry-Standard Open Policy Mechanics
This is the defining mechanic of an Open Policy — understanding it is essential to using the product correctly.
| Element | Confirmed / Industry-Standard Mechanic |
|---|---|
| Sum insured sizing | Should ordinarily represent the trader's estimated annual turnover of goods; rule-of-thumb minimum of 4x the single carrying/per-sending limit |
| Adjustment method | Reducing balance — each declared shipment's value is deducted from the remaining sum insured |
| "Per bottom" / per-vessel limit | A separate cap applies per vessel/conveyance, regardless of total sum insured remaining — prevents over-concentration on a single shipment |
| Policy duration | 12 months from issue, or until sum insured is exhausted by declarations, whichever occurs first |
| Over-declaration | No liability attaches for declarations exceeding the amount insured by the open policy or subsequent endorsements (confirmed, IRDAI-filed comparable schedule) |
| Topping up | Available — additional premium can reinstate/increase sum insured if running low before year-end |
| Premium refund (unused SI) | Refundable on the unadjusted/undeclared sum insured balance after policy expiry, generally subject to claims experience |
Industry guidance is consistent on this point: "There should be proper monitoring that available balance sum insured should not be less than the consignment at any point of time during the whole policy period." If your sum insured runs out mid-shipment, that shipment may not be covered — confirm the insurer's exact monitoring/notification process and top-up procedure with Probitas so you never ship against an exhausted balance.
from
All Risks basis
"Basic Cover"
"The following risks are covered on paying additional premium" available as extensions, not included automatically in base ICC (A) or (B) cover.
Optional Extension"Additional storage cover before delivery of cargo at the final destination" —, the insurer's own page, available as a further enhancement to the base cover.
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 from Probitas before finalising your Open Policy.
Industry-Standard Marine Open Policy Exclusion Pattern
Confirmed exclusion patterns common to Marine Open Policy structures across the Indian market, consistent with the standard Institute Cargo Clauses framework.
"Loss or damage due to insolvency, financial default etc." of the carrier or related party is excluded.
"Loss damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter" — a standard market-wide exclusion.
Deliberate, intentional storage of goods (as opposed to incidental transit storage covered under an extension) is not covered under the base Marine Open Policy.
As noted in the coverage section, these perils require a specific add-on at additional premium and are not automatically included.
"No liability to attach in respect of declarations in excess of amount insured by this open policy or subsequent endorsements" — confirmed, IRDAI-filed comparable schedule. Shipments declared beyond the remaining sum insured balance are not automatically covered.
Please request the insurer's complete, MIOP-specific Institute Cargo Clause wording and exclusion list from Probitas before finalising your policy — the above reflects confirmed patterns common to this product category.
IRDAI-Filed Open Marine Insurance Schedule (Comparable Policy Wording)
"This policy is subject to cancellation by either side after giving 30 days time of cancellation in writing." Either you or the insurer can end the arrangement, subject to this notice period.
30 Days, Either Party"SRCC risks are subject to 48 hours notice of cancellation" — a much shorter notice period specifically for the Strikes/Riots/Civil Commotion extension, reflecting the more volatile nature of that risk.
48 Hours, SRCC Only"In the event of cancellation as above pro-rata refund of premium will be made in respect of undeclared balance." Only the unused/undeclared portion of your sum insured generates a refund — declared shipments remain covered as insured.
Undeclared Portion OnlyIndustry guidance confirms premium refund on unexhausted sum insured is typically "subject to favorable claim ratio" — a year with a poor claims experience may affect refund eligibility, even on the unused balance.
Claims-Ratio DependentStandard Marine Cargo Claims Process, IRDAI Surveyor Regulations
"You have to immediately report the claim" — industry guidance is consistent that prompt notification, as soon as loss or damage is discovered, is essential for marine cargo claims of any kind, including under an Open Policy.
Since cover under an Open Policy depends on the shipment having been properly declared and falling within the available sum insured balance at the time, confirm this declaration is in order as part of your claim preparation.
As with other marine cargo products, claims above the prescribed threshold require an IIISLA-licensed marine cargo surveyor, appointed within a regulated timeframe under the IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015.
Typically required: claim form, the relevant declaration/certificate issued under the Open Policy, Bill of Lading or consignment note, commercial invoice, survey report, and carrier correspondence.
The claim is assessed and settled based on the specific declared shipment's value and the cover terms (ICC A or B) selected for that consignment, within the overall Open Policy framework.
Call Probitas at 022 4302 0000 for the insurer's exact MIOP claims intimation timeline and documentation checklist — and make sure your declaration record-keeping is solid throughout the year, since a claim's validity depends on the shipment having been properly declared under your Open Policy.
Marine Insurance – Open Policy — Frequently Asked Questions
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By submitting you agree to our Privacy Policy and Terms & Conditions. Marine Insurance – Open Policy (MIOP)· IRDAI Licensed. For traders with regular dispatches, covering several shipments over 12 months on a sum-insured basis adjusted by reducing balance against each declared cargo's value. Stamped, legally enforceable document. 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. Sum insured should ordinarily represent estimated annual turnover; rule-of-thumb minimum 4x single carrying limit; per-vessel/per-bottom limit applies regardless of total sum insured. Policy ceases at 12 months or sum insured exhaustion, whichever first. Cancellation: 30 days' notice (either party), 48 hours for SRCC; pro-rata refund on undeclared balance, generally subject to claims experience. No liability for declarations exceeding available sum insured. All terms per the insurer's MIOP policy document; confirm exact wording, per-vessel limits, and premium directly with Probitas/the insurer before purchase. Probitas Insurance Brokers Pvt. Ltd.· IRDAI Lic. No. 528.