Read Also About
Please wait...
It is usually misinterpreted that marine insurance would only cover the goods and products when they are on a vessel at sea.
Marine insurance insures the goods when they leave the warehouse of the seller until it reaches the warehouse of the buyer. Therefore, to minimise the risks associated with this transportation, marine insurance is introduced. In simpler words, the cover is mainly from a warehouse to warehouse.
Since ancient times, marine transport has always played an important role in international and despite new advancements this traditional method of transport has not declined. Just like any other transport, this method too comes with an array of risk ranging from bad weather to even accidents and to safe guards the ships against damage or loss but also the cargo inside.
Just like any other insurance, a marine insurance protects you from any unforeseen events like accidents, damage or even loss of property. Be it an expensive ship or valuable cargo, a marine insurance will help you sail through without incurring any loss in the worst of situations and so is very important.
Similar to the claim of any other insurance, marine insurance also runs in the same manner. Some of the necessary steps in the claim process are as follows:
Multi-modality in marine insurance states that it offers transport insurance in different forms of transport. Some of the multi-modality examples are mentioned below:
Therefore, in the transit the consignment gets stolen or damaged then the customer can claim the policy. Similar to other insurance policies, such as a car or home insurance, it does have a termination date. Usually, the marine insurance ends in 60days after the consignment arrives at the port of final destination. The buyer or importer is given around 60days to clear the consignment arrived at the port and arrange a mode of transport to reach the warehouse.
Although Air Freight insurance is very streamlined. Unlike Marine insurance which has only 60 days, it has 30 days and there is one cover for all sort of risks. Likewise, it has basic rules and regulations. Similar to marine insurance it is also warehouse to warehouse cover multi-modality.
Although, there are many forms of insurance available. It is sensible to ask for fully comprehensive, third party, insurance and premium paid. Like with marine/air insurance asking for a particular cover.
For sea freight, following are the types of insurance cover:
Clause A, B and C are divided into:
Clause A is considered as the best cover available because it includes mostly everything, all involved risks except those detailed under exclusions.
Although exclusions and durations clauses never change, they stand still for all three clauses A B C.
Following are the risks covered in clause B :
Following are the risks involved in clause C :
There are many marine insurance providers and to find the right one for you may seem overwhelming. But with the help of online aggregators and sites to compare different policies online the task is made easier. After filling in your requirements and budget, these sites should help you narrow down the options and choose the correct insurance cover for you!
Many types of premium are available but depend on multiple factors. Some of the factors are associated with them are mentioned below:
Combination of these factors determines the premium paid.
In layman’s terms, an insurance premium is basically the sum an individual pays for an insurance policy and every insurance premium is different. A combination of the following factors determines the base of your premium:
One of the most practical and interesting ways to insure the consignment, one of the most effective way is to contact a freight forwarder to insure the consignment on behalf of their clients. Many forwarders possess their own in house master policy.
The freight forwarder will issue an insurance certificate. The clients must receive an insurance certificate as the buyer will have proof. The proof will help them insured cargo under CIF or CIP for accurate value and care.
There are various other marine insurance plans available ranging right from time plan, voyage plan, mixed plan, port risk plan, valued planned, floating plan and wager plan. Each of these are issued for different requirements and cover different risks.
While most insurances have some features in common, here are some of the basic features for marine insurance:
Some common losses covered by marine insurance are:
While there are many different situations and loses covered by marine insurance policies there are some exceptions which are:
Read Also About