Marine Insurance

Guide to Marine Insurance: All That You Need to Know

Despite technological development, the transportation of goods is still a risky affair. But a reliable logistics service can ensure the safe transportation. As organisation aspire to go global, it is essential to make the transportation system even more robust to avoid the different perils at sea. But apart from safe packaging and logistics, a safety net can be helpful; safety net in the form of a marine insurance cover.

What is marine insurance, you may ponder. A marine insurance helps to avoid any losses that may be caused during transportation and loading and unloading of goods. If uninsured, these damages to the consignment can mean financial loss and no business would like to incur. Thus, it is advisable to purchase a marine insurance coverage each time, be it for domestic or international transfer of goods.

What are the features of a marine insurance policy?

Significant business loss may occur due to damaged shipments leading to damages to the goods. With a marine insurance policy, business can mitigate these losses. Here are some of the features to note about a marine insurance policy.

    1. Comprehensive coverage: Marine insurance cover protects the goods not only against damages during transportation, but also other damages that occur during loading and unloading of the cargo. Also, a marine policy mentions the different perils that are covered by the insurance company.
    2. Customised coverage: Marine insurance plans can be customised to select the exact coverage that a business needs for its goods.
    3. Flexibility of coverage: Marine insurance policies are flexible in nature, i.e. the sim insured can be opted based on the value of goods being insured, all of it within your budget.
    4. Add-on facility: Add-ons are additional covers that enhance the policy’s scope. Selecting the right add-ons can ensure more than standard coverage by the insurer for the goods being transported.

* Standard T&C Apply

Who can buy a marine insurance policy?

Anyone engaged in the business of buying or selling goods can opt for a general insurance plan that covers the goods. Financial institutions that fund the transaction of purchase and sale can make it mandatory to have a marine insurance coverage.

What are the different types of marine insurance policies that can be purchased?

The four major types of marine insurance policies to choose from:

  • Hull and machinery insurance: Opted by ship or vessel owners, a hull is the main part of the structure of a ship that protects the ship’s torso and the damages to it. Not just the ship, but also the machinery installed on it for cargo purposes is critical, a hull policy is often bundled as a hull and machinery policy.
  • Cargo insurance: When sending a consignment through a cargo service, the consignors face the risk of such shipment getting damaged. This damage may occur at the port, ship, railway track or even while unloading and loading of goods. With a cargo insurance by your side, damages to your shipment are insured and offers far fetched benefits as compared to its costs.
  • Liability insurance: Crashes, collision, pirate attacks are some of the different perils that may occur during transporting the goods via ships. These factors lie outside the control of the business buying and selling them and hence, a liability insurance helps to safeguard against these damages.
  • Freight insurance: A freight insurance safeguards the interest of the shipping company indemnifying them of the losses caused to the consignments during the transportation process.

* Standard T&C Apply

Here’s all you need to know when opting for marine insurance coverage to make a prudent choice for securing the goods being sold or purchased.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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