Overview
A Deviation Clause in a marine insurance policy governs what happens if a vessel changes its planned route during transit. This clause is crucial because an unjustified deviation can void the insurer’s liability from the moment of deviation onward, though losses incurred before remain covered.
Permissible deviations—such as emergencies like storms, rescue operations, or critical repairs—are typically accepted and covered under the policy. In contrast, voluntary or commercial deviations without valid justification are treated as policy breaches and lead to denial of claims.
A Deviation Clause thus ensures clarity on acceptable exceptions, protects insurers from increased risk exposures, and guides insured parties to maintain coverage through careful route planning and timely communication.
What is Deviation Clause in Marine Insurance? When the ship intentionally changes its route or remains in port without cause then deviation in marine insurance happens. Thus, the deviation is the new route or delay of the ship. Unless the marine insurance states otherwise, there is a breach of the insurance contract by the party which is responsible for the deviation.
Deviation of Voyage under Marine Insurance Act
As per the Indian marine insurance Act, 1963, there would be a deviation from the voyage where-
- There is a deviation from the course of the voyage as mentioned in the policy document
- The policy document does not mention the course of the voyage but it is the customary course for departure that usually follows
At the time of deviation, the voyage is altered. Thus, the marine insurer is free from its responsibilities. The marine insurance contract requires the insurance company to make payment only if it follows the stated port route. In case of any deviation, the insurer can refuse to settle the loss or damage.
A breach of contract occurs when any unjustified and voluntary deviation happens. In such a case, the insurance company has the right to terminate the policy. If it would do so, the policyholder would also lose the benefit of immunity in the insurance contract. Thus, it would have to bear all losses or damages on its own.
Read more: What is Inland Transit Coverage in Marine Insurance?
However, there would be no breach, if a ship deviates from the path on its own. In case of unfavourable weather conditions or to save a life, the marine insurance policy covers the deviation.
Marine insurance cases where the deviation is excused
Below are the following circumstances where a deviation can be excused.
- Deviation occurs due to circumstances beyond the control of the policyholder
- It is necessary for deviation to take place to ensure the safety of the ship or the insured items
- In cases where deviation saves the human life
- Where deviation happens to obtain medical or surgical aid for the person who is on board the ship
So there are other situations too which permit deviations. Therefore, read your marine insurance policy document to know What is Deviation Clause in Marine Insurance, its important and its implications for coverage.
Case: 1
J.S Ship was carrying a cargo of wheat when it started raining heavily. The rainwater damaged a substantial part of the steamer, and then the captain of the steamer decided to throw off some consignment in the water to avoid the ship from getting the sink. J.S Ship took this step in order to save the lives of crew members who otherwise would have sunk in the water.
In this case, as the owner of J.S Ship had a marine insurance policy, it approached the insurer for the claim settlement. Here, the insurer appointed a surveyor to inspect the situation. The surveyor finds that J.S Ship lightened the consignment to avoid it from getting sunk hence saving the lives of other people on board. Due to this reason, the marine insurance company agreed to settle the claim of J.S Ship as per the marine insurance contract.
Case: 2
L.S Fruits sent its consignment of oranges to a company situated in the Maldives via sea. Here, the company had a marine insurance policy. Therefore, it was confident that the insurer would cover any loss or damage. However, when the ship was underway, the captain decided to change the route in order to avoid the sea traffic and reach its destination in advance.
However, the pirates attacked the ship while it was on the new route. Luckily, after a week the crew members and cargo got rescued. However, L.S Fruits had to incur heavy losses.
As the company had a marine insurance policy, it approached the insurer to cover the losses. However, the insurer refused to settle the claim as the deviation happened. Without any valid reason, the ship deviated from its original route, and the loss happened on the new route, and therefore, the insurer was not liable to pay the compensation.
FAQs
Q) What is a deviation clause in marine insurance?
A) It is a policy provision defining when insurance remains valid if the ship deviates from its agreed or customary route—particularly when deviations are justified by emergencies or safety needs.
Q)What constitutes permissible vs. impermissible deviation?
- Permissible deviations include detours to save lives, avoid storms, conduct essential repairs, or secure medical aid.
- Impermissible deviations are commercial or non-essential route changes without valid reasons, and can void coverage beyond the deviation point.
Q) What are the consequences of an unjustified deviation?
A) In most legal frameworks, the insurer is discharged from liability from the moment the deviation occurs, although exposure remains for any loss incurred prior to deviation. Premiums are still retained.
Q) How can shipowners mitigate deviation risks?
A) Ship operators should clearly define routes in contracts/bills of lading, notify insurers before deviation, and consider endorsements or liberty clauses to extend coverage when deviations may be necessary.
Q) Are deviations allowed under maritime law?
A) Yes—under common law and conventions like Hague‑Visby Rules, deviations for safety reasons are allowed. The law recognizes “reasonable deviation” for lifesaving or avoiding peril without voiding policy claims
About The Author
Simran
MBA Insurance and Risk
With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.
