Introducing Marine Insurance
The expansion in economic development has boosted international trade. International
trade is, however, exposed to various risks in transporting goods. A marine insurance
policy has thus become an important insurance plan for major corporates. A marine
insurance policy not only provides coverage for international trade, it is also
helpful in case of domestic trade.
What is marine insurance?
A commercial marine insurance policy is designed to provide coverage for goods which
are being transported by rail, road or air. The policy pays compensation if the
goods being transported are damaged before reaching their destination.
What are the risks covered by the plan?
Marine shipping insurance covers loss suffered by the cargo due to –
- Fire or explosion
- Discharge of the cargo at any port of distress
- Collision, overturning or derailment in case of land transport
- Stranding or sinking of the ship
- Washing overboard or jettisoning
- Earthquake or lightning
- Dropping of the cargo in case of loading or unloading
Moreover, the expenses of survey of the loss incurred, reconditioning costs, forwarding
expenses and suing charges are also covered by a standard marine insurance policy.
The following instances of
insurance claims are not covered under a marine shipping insurance policy
offered by a marine insurance company:
- Damages suffered due to willful misconduct
- Losses due to the ship owner becoming insolvent
- Loss due to delay of the cargo
- Loss incurred as a result of bad or insufficient packaging
- Loss due to war, riots, strikes or commotion.
Who is the insurance policy meant for?
Import and export merchants, banks, contractors and buying agents should buy a marine
insurance policy for covering the loss to cargo.
What are the types of marine insurance policies?
Marine insurance comes in various forms. Here are some common types of marine insurance
policies available in the market:
- Cargo insurance – this policy covers the goods being transported against unforeseen
loss and damages.
- Hull insurance – this policy covers the ship/vessel which is being used for transporting
the cargo. The policy, thus, covers the value of the hull and body of the ship against
- Valued policy – under this policy, in case of a loss covered by the plan, a fixed
benefit is paid to the insured irrespective of the actual loss suffered.
- Time policy – this policy is issued for a pre-determined limited tenure.
- Open policy – this is an annual insurance policy which covers any number of voyages
taken during the policy year. The policy is also called a floating policy.
- Specific voyage policy – this policy covers one specific voyage.
Paybima offers a list of marine insurance policies of different types. You can easily
find a policy suitable for your needs online through Paybima. So, if you are in
the business of transporting goods, a marine insurance policy should be taken.