Marine insurance protects cargo boats, ships, terminals, and other structures used to move products from one point of origin to another from damage or loss. Theft, jettison, inappropriate carrier stowage, hook damage, strikes, war, and natural dangers are all covered under marine insurance.
Importance of Marine Insurance
A marine insurance policy is required for all ship owners that utilize their vessels for business or transit purposes by rail, land, sea, or air. Any unfavorable circumstances can result in a significant financial loss for the shipment.
Keeping the items insured against any unforeseen events during transit, such as an accident, collision, overturning, and so on, ensures that the firm is secure. There’s also Marine Cargo Insurance, which is a significant sub-category.
Another crucial element of having marine insurance is that a transporter can customize his insurance plan based on:
- The size of his ship
- The routes his ship for transferring cargo
Features of Marine Insurance
- Comprehensive coverage
- Simple customization
- Claim survey
- Settlement aid
- Extension of coverage
Common concerns with Marine Insurance
The latter of the four modes of transportation – road, rail, air, and water – is the most concerning to transporters, not only because of natural occurrences that could harm the cargo and the vessel, but also because of other incidents and attributes that could result in a significant financial loss for the transporter and the shipping corporation.
When it comes to water transportation, incidents like piracy and possibilities like cross-border shoot-outs pose a major threat, so in order to avoid any loss due to such events and happenings, it is always beneficial to have a back-up like marine insurance in the interest of the corporation and the transporter.
Types of Marine Insurance
- Liability Insurance
- Hull Insurance
- Freight Insurance
- Disasters like fire, explosion, sinking and abandoning
- Expenses arising out of a collision, overturning, or derailment from land
- Compensation in case of cargo being unloaded from a port of distress/disturbance
- Natural disasters like earthquakes and lightning
- Expenses like shipping costs, survey fees, reconditioning costs, and suit fees
- If the ship is being thrown overboard or abandoned, the expenses would be covered.
Marine insurance provides a safe harbor for shipping companies and carriers by reducing the risk of financial loss due to the loss of valuable cargo. It also aids in instilling in shipping firms and receiving parties the insurance companies’ responsibility, devotion, and transparency.