Let’s Understand What Marine Insurance Is, It’s Types, And Policies

In today’s age of globalization, various means of exporting or transferring goods from one country or state to another have been discovered and marine is one of such ways. However, when we deal with marine carriers like containers, bulk carriers, etc many things are to be taken care of because it is an expensive affair. Nature’s acts are unpredictable and this mode majorly depends on it i.e. water bodies like ocean, sea. So, when you will invest so much money in this mode you will certainly want the goods to be safe and secure that is the point when marine insurance comes into the picture and we will also specify what marine insurance covers?.

Marine Insurance

The following points will help you to know more about the concept of marine insurance as it mentions important aspects of marine insurance and how to go about it:

What is Marine Insurance and how it functions?

Marine Insurance is a contract according to which the insurer or underwriter agrees to pay the losses caused during the course of a transaction.

Types of Insurance:

  • Hull Insurance:- It majorly serves to the torso and hull of the vessel beside all the articles and pieces of furniture in the ship. The owners of the ships mainly opt for this form of insurance so that they can safeguard themselves from the losses that may be caused by some mishaps which may occur to the ship.
  • Cargo Insurance:- It is especially for the cargo of the ship and also pertains to the belongings of a ship’s travelers.
  • Liability Insurance:- In this compensation provided to any liability arising on account of a ship crashing or colliding and also in case of any other induced attacks.
  • Freight Insurance:- It gives protection to merchant vessels corporations which stand a chance of losing money in the form of freight may be in a situation in which cargo is lost due to the ship meeting with an accident. This insurance solves the problem of companies losing money.

Types of Marine Insurance Policies:

  • Time Policy:– It is the policy which covers the risk up to a particular or for a fixed time;
  • Voyage Policy:- It’s valid for a particular voyage.
  • Mixed Policy:- It offers a client the benefit of both time and voyage policy.
  • Port Risk Policy:- It safeguards the ship when it is stationed in a port.

Marine insurance offers a very useful tool for the person involved in shipping business because advantages of marine insurance are too many to be counted. Some are listed below  

Benefits of Marine Insurance:

  • Safeguards you from theft or hijack of a vessel;
  • Safeguards you from the theft of onboard cargo;
  • loss caused due to inappropriate handling during transportation;
  • Immunes from the losses caused dues to the accident while in convey;
  • losses caused due to climate change during the voyage;
  • Compensates for illness, injury or death of persons who onboard the vessel;

The claim process for marine insurance

For claim, a process person has to contact the insurance company after the goods have been damaged or stolen. Company will appoint a surveyor who will investigate the whole incident and will inform the company accordingly and the claim will be settled afterward.

What are the eligibility criteria of goods for marine insurance?

Marine insurance covers 

  • All goods which are transported by sea, air or rail 
  • Transport of goods done via rivers
  • Transport of goods which are sent along with various parts of the country via intercostal routes
  • Transport of goods counted as import or export

Why do you need an expert for choosing marine Insurance?

Growth in globalization and popularity of this way of transportation of goods has made the Marine insurance market very competitive and it is a competitive business now, so it calls for the guidance and suggestions of an expert. The expert can guide them out of various policies which is the most appropriate policy for you

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