Marine Sales Turnover Policy
Insure Every Dispatch Without Daily Declarations
A marine sales turnover policy covers goods in transit across your whole business for a year, with the premium worked out on your annual sales turnover rather than on each consignment. Raw material coming in, stock moving between plants and finished goods going to customers can all sit under one policy. There are no per-trip declarations to chase. MILES helps you choose which transits to include, set the right limits and settle the year-end adjustment accurately.
Reviewed by Vinay Jain, Principal Officer (IRDAI Reg. No. 954) · Last reviewed
Why Businesses Choose A Turnover Policy
No Per-Trip Paperwork
Transits are covered automatically, so your dispatch team does not have to declare every truck or courier parcel.
Inward And Outward Transits
Purchases, inter-depot transfers and sales dispatches can all be included, depending on the scope you choose.
Premium Linked To Sales
Premium is based on estimated turnover and adjusted to actual figures after the year, usually from audited accounts.
Built For Manufacturers
Suits factories and distributors with frequent road movements across India and a steady stream of small shipments.
Clear Transit Limits
A per-transit limit and location limits are agreed upfront, so you know exactly how much each lorry is insured for.
Claims Help When Needed
We guide you on FIRs, carrier notices and survey documents after an accident, theft or damaged delivery.
What is a marine sales turnover policy?
A marine sales turnover policy is an annual transit insurance in which the premium is calculated on your yearly sales turnover, and every eligible movement of goods during the year is covered without separate declarations. It is one of the most widely used cargo covers for Indian manufacturers and distributors.
The logic is simple. If your goods move constantly by road from suppliers to factory, between warehouses and out to dealers, tracking each trip for insurance purposes is impractical. Turnover is a reliable proxy for how much cargo you move, so the insurer uses it as the rating base. You pay a provisional premium at the start and the figure is adjusted once the actual turnover for the year is known.
Which transits can be covered
You decide the scope when the policy is placed. A typical structure looks like this:
| Transit type | Example | Usually included? |
|---|---|---|
| Inward (purchase) | Steel coils from a supplier to your plant | Optional, often included |
| Inter-unit transfers | Finished stock from factory to depot | Optional |
| Outward (sales) | Dispatches to dealers and customers | Core cover |
| Sales returns | Rejected goods coming back from buyers | Can be added |
| Import or export legs | Overseas voyage portion | Often better placed under an open cover |
Where goods are sold on terms that pass risk to the buyer at your gate, the outward transit may not be your risk at all. Aligning the policy with your sales contracts avoids paying for cover you do not need, and avoids gaps where you do.
What the policy protects against
Domestic transits are usually written on Inland Transit Clauses. The wider form covers most physical loss or damage from an external cause, while the narrower forms are limited to named perils such as fire, lightning, overturning, collision and derailment. Theft and non-delivery of an entire package are often available as extensions. Strikes, riots and civil commotion can be added for a further premium.
What is usually not covered
- Poor or unsuitable packing for the journey.
- Losses from delay, loss of market or consequential loss.
- Normal leakage, evaporation or shrinkage in the goods.
- Goods in storage beyond the permitted transit period.
- Movements in unfit or unlicensed vehicles, where the wording says so.
How the premium and limits are decided
The insurer rates the policy on your estimated annual turnover, the nature of the goods, how they are packed, the modes and distances involved and your loss history. Two limits deserve close attention:
- Per-transit limit — the maximum value in any one vehicle or consignment. If a fully loaded truck of your highest-value product exceeds this, that load is underinsured.
- Location or accumulation limit — the maximum while goods wait at a transporter’s godown or transhipment point.
At the end of the year, you submit the actual turnover, often backed by audited accounts or a CA certificate. If it is higher than estimated, you pay an adjustment; if lower, the insurer refunds the difference, subject to any minimum premium in the wording.
Sales turnover policy or open cover?
A turnover policy fits businesses with many small domestic dispatches. A marine open cover fits businesses with fewer, larger shipments, especially imports and exports, where certificates are needed for banks or buyers. Some clients run both: a turnover policy for domestic distribution and an open cover for overseas trade. If you only ship now and then, single transit marine insurance may be enough. You can compare every option on our marine insurance page.
How MILES helps
- Scope mapping: we list your real transit flows and match each one to your sales and purchase terms.
- Insurer comparison: we obtain terms from several insurers and compare rates, deductibles and extensions side by side.
- Limit checks: we test the per-transit limit against your highest-value loads so nothing travels underinsured.
- Year-end adjustment: we help prepare the turnover declaration so refunds or additional premiums are calculated correctly.
- Claims support: we coordinate surveys and documents after a loss.
What we need for a quote
- Last audited turnover and projected turnover for the coming year.
- Description of goods and how they are packed.
- Transit types to include and the modes used (own trucks, hired transporters, rail, courier).
- Maximum value per vehicle and at any transit location.
- Claims history for the last three years and your current policy, if any.
Cover, exclusions and premiums depend on the insurer’s policy wording and underwriting. MILES Insurance Brokers Pvt. Ltd. is an IRDAI-licensed direct broker (Life & General, Reg. No. 954); the insurance is issued by the insurer. Insurance is the subject matter of solicitation.