A Detail on The Marine Insurance Policy

Detailed Marine Insurance

Marine insurance policy is an important document that ascertains the insurance of goods that have to be dispatched from the country of origin to the place where it is consumed. Marine insurance policy refers to the making of an important contract of protection and coverage against unprecedented conditions. 

It is a significant guarantee that your packages dispatched from their place of manufacture to the land of final delivery are insured. In this era of globalization, it is important to buy a marine Insurance policy to protect your business’s financial interests.

Important features of marine insurance policy 

  • Unlike the name, the Marine Insurance policy is applicable for all modes of transportation of goods whether by sea or land, or air. 
  • Three parties can get a Marine insurance policy namely, the exporter, the importer, or the forwarding agent. However only one of them needs to ensure goods while in transit. Also, a marine policy insurance policy can be taken by any person that is involved in the transit of goods.
  • It covers the loss or terminals damage of ships,  or cargo, or  terminals
  • It also covers damage even while goods are transferred, or acquired, or held between the points of origin and the final delivery point. 
  • In India it is quite easy and convenient to purchase a marine insurance policy as many banks and financial institutions are ready to provide marine insurance. 

Understanding the working process of Marine insurance Policy 

  • It is the best way to transfer the liability of the goods from the parties or the intermediaries involved to the Cargo insurance company
  • The exporter need not bear the sole responsibility of the goods. He can buy an insurance policy and get secure maritime insurance coverage for all types of exported goods against any possible damage or loss.
  • The carrier of the goods, whether it is the shipping company, or airline has to bear the cost of damages to the goods while on-board.
  • You can get the compensation on a ‘per package’ or ‘per consignment basis. 
  • However, the coverage so provided generally is not enough to cover the cost of the goods shipped. Hence, exporters opt to ship their products after they get them insured with a reputed insurance company. 

 An important aspect to keep in mind for getting marine insurance and avoiding insurance claims,

  • Pack the goods carefully so that they stay safe during loading and unloading.
  • Pack the goods in a manner  that they can survive  weather fluctuations   and natural hazards to the best extent possible
  •  Pack the goods with great caution so that they can withstand clumsy  handling or theft   

Types of marine insurance  

  • Freight Insurance

  • Hull Insurance

  • Marine Cargo Insurance

  •  liability Insurance 

Types of marine insurance policy 

  • Voyage Policy; It can be taken for one consignment only. The exporter  has to  buy insurance cover every time  the shipment is sent overseas
  • Time Policy; It is issued for one year or a fixed period.
  •  Mixed Policy;  This policy is a mixture of two policies i.e Voyage policy and Time policy
  • Named Policy; It is one of the most popular marine insurance policies as it is issued in the name of the ship.
  • Port Risk Policy; It protects the ship when it is stationed in the port.
  • Fleet Policy; All ships whether old or new belonging to the owner are covered. It is a time-based policy.
  • Single Vessel Policy; only one vessel is covered under this policy. 
  • Blanket Policy;  In this, the owner is entitled to pay the maximum protection amount at the time of purchasing the policy. 
  • Floating policy; This is an open policy in which a one-time insurance cover is purchased for a fixed period against all types of goods, all modes of transport, destinations, etc.

 Three types of coverage under Marine insurance policy;

  • Maximum Coverage

  • Basic Coverage

  • Additional coverage 

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