On this article, we will share with you how marine insurance work, what benefits you will gain from the insurance company if any losses. But before we continue, let’s look into some important information you got to know about what marine insurance stands for, who needs it and where to get one.
What marine insurance stands for?
Marine insurance is simply a contract of indemnity that is signed between you and the insurance company, giving you assurance that your cargo (goods) dispatched from the country of origin to it landing destination are insured and safe.
In other hands marine insurance covers the damage or loss of cargo, ship, air flights, truck, terminal, crane and other equipments use during transportation of goods from the point of origin to it final stop.
Not only that the marine insurance is basically for shipping industry or goods transported by sea, it also apply to cargos transfer via road and air.
Probably you might be confuse when a goods shipped by air is tagged marine cargo insurance? Yes it’s because despite it name, marine insurance applies to all modes of transportation of cargos.
What are the types of marine insurance ?
The marine insurance are divided into four main types, namely;
- Cargo insurance
- Ocean or Inland marine insurance
- Marine Liability insurance
- Vessel Hull insurance
Cargo insurance is a type of insurance that provides coverage for cargo physical damages during it transfer. The insurance company will offer you different variable options base on the type. However, base on your option chosen, the policies will either cover the goods incase of theft, damages and losses due to misplacement of address, etc.
Ocean or Inland marine insurance this is generally an insurance that covers cargos when transporting via sea and continued by land e.g via ships train, truck and even while at the warehouse with a third party.
Marine Liability insurance also known as protection and indemnity (P&I) is a type of insurance coverage that offers protection for third party liabilities that owners and corporations are exposed to during water or air transfers.
This type of insurance are included to Seafarers or sailors, air hostess, during there contracts. It’s coverages are in case of injuries, illness or loss of life while in operations. It also covers damage to other vessels and her cargos, collision incidents, medical expenditure, also in most cases even quarantine due to covid-19 may also be included.
Hull insurance are the name implies, it’s a type coverage that assure physical damage to vessels or boat body together with equipments installed on her.
The insurance policy is applicable for all ocean and sea going vessels. However, it’s limited to some commercial sea water crafts. But oil rigs, offshore supply boats, bunker barges, and other related installation offshore may benefit from it as well.
Why to have marine insurance ?
Marine insurance is important to have if you are on the listed means of transportation, not exclude importer & exporter. Acknowledging the teams involved, both parties are payable of items under insurance.
Features of a marine insurance policy
The policy are well defined contract and it has strict policy requirements. The Insurer requirements should always be followed because any little discrepancy can lead to rejection of claims.
Marine insurance features things like; insurable interest, contract of indemnity, payment of premium, coverages as listed above, acceptance of the offer, claiming process
Moreover, a marine insurance provides comprehensive protection to goods and life. But have it in mind that there are coverages that can be excluded that requires consideration. Such exclusions can lead to lossing your claims from an insurance company; if caused by packaging errors, negligence,war, strick, riot,etc. Therefore, it’s recommended to carefully review your insurance policy before signing.
Where to obtain a marine insurance ?
To obtain an insurance policy for your local country, it can be done by visiting a commercial or government bank, any financial institution and/or a local agent.
In USA for example, you can find some companies that offers Inland marine insurance, such as; Great American Insurance Group
To all interest, make sure to read your insurance policy properly, review it over and over to avoid lossing your claims if any incidents.
If you are a sailor, or work on transportation business, try to get an insurance for yourself or make sure you have an insurance issued by through your employer.
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