Marine Insurance

What is Marine Insurance?

Marine insurance is a contract of indemnification that guarantees that the products shipped from the country of origin to the destination country are fully insured. Any loss or damage to ships, cargo, terminals, and other transportation modes used to ship or acquire products between their points of origin and their destination is compensated by marine insurance.

However, contrary to what the name implies, these insurance plans cover all types of cargo transportation. For instance, marine cargo insurance is the name of the policy when items are carried by air.

Who Needs Marine Insurance?

You may need Marine Insurance, if you are:

• Individual buyer
• Manufacturer
• Buying Agent
• Seller
• Import/Export merchant
• Bank
• Contractor
• Individual having a moving company
• Freight forwarder

Why Buy Marine Insurance? 

The following are some benefits of a Marine Insurance Policy:

• First, it acts as a financial support system in unprecedented mishaps.
• For a higher premium, add-on-covers provided enhanced insurance against terrorism, conflict, etc.
• Helps businesses recover from losses without interrupting their operations.
• The insurance policy also covers the hull, marine liability, and exposed commodities stored onshore or offshore.
• Independent owners can obtain insurance coverage for personal watercraft (PWC), yachts, and pleasure crafts. In addition, some boat insurance policies cover salvaging and wreck removal without charging extra for hull coverage.
• Available in different types like:

Hull Insurance - The hull and torso of the conveyance are covered by hull insurance. It protects the product against damage and mishaps.

Marine Cargo Insurance - The insurance of commodities shipped from the country of origin to the country of destination is referred to as a marine cargo insurance policy.

Yacht Insurance - A sailing vessel's indemnification and liabilities are covered by a yacht insurance policy.

Common Risk Scenarios

A marine insurance policy provides coverage against different risks, such as:

• Fire, explosion, stranding, and sinking
• Loss during cargo loading or unloading
• Total loss protection
• Lightning or an earthquake
• Unexpected administrative costs
• Washing ashore or jettison
• Accident, collision, overturn, and derailment
• Natural disaster

Major Inclusions of Marine Insurance

Here is a list of the major inclusions of marine insurance:

According to the Institute Cargo Clauses (ICC), the insured option to select amongst the following marine insurance coverage:

• ICC (C) - Stranding, fire, sinking, lightning, grounding or capsizing of a vessel or an aircraft, collision or contact of a vessel, ship, or conveyance with any external object other than water, jettisoning, general average sacrifice, discharge of cargo at a port of distress, derailment or overturning of a land conveyance,
• ICC (B) - Volcanic eruption, washing overboard, earthquake, lightning, sea, river or lake entering into a watercraft, vessel, hold or place of storage, and the risks associated with ICC (C).
• ICC (A) - All risks, apart from the noted exclusions.
• ICC (Air) - Applies to air freight and covers "All risks," except for the listed exclusions.
• ICC (War & Strikes) - Covers war, strikes, and other events not covered by the fundamental ICC clauses.

Major Exclusions of Marine Insurance

Here are major exclusions of marine insurance:

• Malicious damage
• Bankruptcy
• Liquidation
• Insolvency
• Riots, wars and strikes
• Poor packaging
• Civil commotion
• Compliance nations where locally admitted practices are recognized.
• Cargo to UN Sanctioned Nations

Factors to decide the price of a Marine Insurance Policy:

Several parameters play a crucial role in determining the premium of a marine insurance policy:

• Cost of the commodities
• The commodities' nature
• The potential danger that your product may have
• Construction, travel route, and vessel type
• The destination of your goods
• Any strike, political danger, civil unrest, or riots can hamper the delivery of the commodities

Parting thoughts

Are you looking for a trusted Marine Insurance broker? Then before choosing one, knowing what you need protection from is crucial when choosing an insurance policy. What could go wrong? Which risky race are you participating in? Knowing what your insurance might cover and asking yourself the correct questions are critical. Moreover, when choosing your insurance, it's crucial to pay close attention to all of the insurance's specifics, such as coverage, the application process, the percentage of the total cost covered by insurance, the processing time for requests, and the degree of customer satisfaction.

So, once you go through these questions and find all the answers you need, you can visit the Policybazaar website for marine insurance online to get the best policy.

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