MARINE INSURANCE

MARINE INSURANCE

Marine insurance covers the risks faced by ship owners, cargo owners, terminal handlers and various intermediaries in the shipping business. Looking at various conditions that can affect your cargo, including weather conditions, pirates, navigation problem, it is recommended that you avail an appropriate insurance as per the nature of your business and the risks associated with business operations.

It also covers third parties if they happen to get affected directly or indirectly by the activity. There are various types of marine insurance one can choose from as per the need and requirement.

Types of Marine Insurance

Before going ahead with buying a marine insurance, you should be aware of the types of this insurance in order to be able to choose the most suitable one for your business. The types are:

Hull and Machinery Insurance: The hull is the main supporting body of the vessel without masts. Thus, hull insurance covers the applicant from any mishap to the ship. It is generally taken by ship owners. Along with hull insurance, one should also go for machinery insurance to cover the machinery of the ship. It insures the applicant against operational, mechanical and electrical damage to the ship machinery. Since both the sections cover the ship as a whole, it is jointly issued as Hull and Machinery Insurance by the insurance company.

Marine Cargo Insurance: Cargo owners are exposed to the risk of mishandling of the cargo at the terminal and during the voyage of the ship. It might get damaged, lost or misplaced. Hence, to protect the cargo owner from the financial losses arising out of such cases, marine cargo insurance is issued against appropriate premium payment. It comes with a third-party liability insurance which covers any damage done to the port, railway track, ship, other cargo or humans due to your cargo.

Liability Insurance: The ship may be exposed to crash, collision or piracy attack. Under such situations, the valuable cargo is exposed to a high risk. Moreover, the life of crew members and others on the ship is also in danger. The appropriate liability insurance indemnifies the ship owners out of any such liabilities due to events not under his control.

Freight Insurance: This section covers the loss of freight. In case the freight is lost or damaged or the ship is lost, the shipping company will not have to bear the loss. They can be compensated for the loss through this insurance.

What it all Covers?

The cargo movement is not uniform for every customer. The need for insurance is also different for different customers and at different point of time. Some of the common points covered under marine insurance are:

  • Sinking, stranding, fire, explosion
  • Loss in loading or unloading cargo
  • Total loss coverage
  • Earthquake or lightning
  • Unforeseeable administrative expenses
  • Jettison or washing overboard
  • Collision, overturning, derailment, accident
  • Natural calamities
  • General average

FAQ

General Question

Yes,The process is simplified in few steps. Inform the insurer immediately. In case of any damages to your goods on the ship, a port or joint ship needs to be arranged by you. Submit the policy along with the relevant documents.

The types of contracts are : FOB : Free on Board Contract, FOR: Free on Rail Contract,      C & F  :Cost and Freight contract, CIF: Cost, Insurance and Freight Contract

A plenty of plans are offered under Marine Insurance :Voyage Plan, Mixed Plan, Time Plan, Port Risk Plan, Floating Plan, Wager Plan, Valued Plan

Marine Insurance covers:1.Fire or Blast, Sinking or Stranding etc. 2.Collision and overturning of land transport.3.The release of Cargo at the port of disturbance.4.Average sacrifice recovery charges.4.Washing overboard.5.Earthquake or lighting.6.Total loss of package overboard.