A contract of marine insurance is an agreement whereby the insurer undertakes to indemnify the insured, in the manner and to the extent thereby agreed, against transit losses, that is to say losses incidental to transit.

A contract of marine insurance may by its express terms or by usage of trade be extended so as to protect the insured against losses on inland waters or any land risk which may be incidental to any sea voyage.

Marine insurance includes cargo insurance, which provides insurance cover in respect of loss of or damage to goods during transit by rail, road, sea or air. Thus cargo insurance concerns the following : export and import shipments by ocean-going vessels of all types, coastal shipments by steamers, sailing vessels, mechanized boats, shipments by inland vessels or country craft, and consignments by rail, road, or air and articles sent by post.