Difference between Marine Open Cover and Marine Open Policy

Marine insurance is critical for the shipping industry, particularly in the Indian context. Marine open cover and open policy are two variants of marine insurance policy based on their nature and terms of use.

With multiple marine insurance options available, choosing the right one that suits your business needs is essential.

Bajaj General Insurance offers marine open cover and open policies for MSMEs seeking marine insurance for their maritime business. Read on to know more about marine open cover and marine open policy.

Read on to know the difference between marine open cover and marine open policy.

What is a Marine Open Cover?

An open cover marine insurance policy is one in which the insurer promises to provide coverage for all transported cargo during the policy's term. It is given to companies that operate in the marine industry.

Open cover insurance policies can be either permanent or renewable.  When every shipment is covered separately, the policy becomes renewable. When many shipments are covered, it becomes permanent.

What is a Marine Open Policy?

A marine open policy provides coverage for several shipments throughout 12 months, depending on the sum insured. Traders who ship merchandise regularly over a predetermined period of time must choose a maritime open policy.

In open policy, the sum insured is adjusted against the value of each cargo in a reducing balance method.

The marine  open policy of Bajaj General Insurance

Key Differences Between Marine Open Cover vs. Marine Open Policy

Both open cover and open policy are types of marine insurance. However, the difference between marine open cover and open policy is primarily in terms of scope, coverage limits and nature of contract.

Bottom Line

In summary, an open policy allows you to cover an unspecified number of requirements in the future. In contrast, an open cover insurance will enable you to enjoy blanket coverage for your ongoing operation and eliminates the need to purchase a new policy each time a shipment is made.

Check the marine open cover and the marine open policy of Bajaj General Insurance and choose the marine insurance that best suits your needs.

Frequently Asked Questions

What is an annual open policy in marine insurance?

Marine insurance's Annual Open Policy offers continuous, comprehensive coverage for cargo across many shipments all year long.

What is the sum insured in marine insurance?

The maximum amount that the insurance company must pay out for covered losses or damages throughout the policy period is known as the sum insured in a marine insurance policy.

Who should purchase an annual open policy in marine insurance? 

All traders, including importers, exporters and logistic firms who deal with high volume, frequent shipments should purchase the annual open policy in marine insurance.

What is the key difference between an open cover and an open policy in marine insurance?

An open cover is unstamped and has no legal validity unless it is supported by a stamped policy or certificate of insurance, whereas an open policy is a stamped document and is therefore legally enforceable in and of itself.

What is the difference between an open policy and a specific policy?

An open cover in marine insurance is a long-term contract that covers several shipments between the insured party and the insurance company.  In contrast, a specialised policy covers a single shipment or a particular travel.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.