Everything you need to know about marine insurance

Marine Insurance

Everything you need to know about marine insurance  01st Nov 2019

In spite of the advancement in road, air and rail transportation, the sea route remains the most preferred mode of freight for international trade purposes. The sheer magnitude of cargo at stake is enough to make anyone think twice about what measures you can take to secure your shipments.

This is where marine insurance comes in. It gives you the peace of mind you need with its extensive coverage.

What is marine insurance?

Marine insurance

protects you in case of damage/ loss of cargo, ships and vessels; when a property is acquired, transferred or held in possession between the starting point up until the destination.
Why buying marine insurance is a good idea?

Consider an example. Suppose you are a seller and you put your goods on a ship. Due to bad weather or a storm at sea, there is damage to valuable goods to an extent whereby the customer at the destination refuses to accept the final goods. For no fault of yours and due to unavoidable circumstances, you would suffer a monetary loss that could even go in crores!

Thus, it is essential to buy marine insurance to get coverage for the following:

  • 1. Export or import shipments.
  • 2. Goods being transported using sea, rail, road, post or air.
  • 3. Goods being carried via coastal vessels plying between ports located within the country.
  • 4. Goods that are transported via the vessels plying along rivers.
Other Advantages

Here are some other advantages that you are entitled to with your marine insurance-

  • 1. The insured obtains additional advantage of global claim survey and settlement.
  • 2. The cover accommodates diverse situations including property damaged either/or onshore or offshore, casualty at sea, marine liability, hull damages and other needs of the insured.
  • 3. There is an option to extend the plan to include protection against extraordinary circumstances like perils at sea, strikes, pirate hijack etc.with the help of add-on covers.
  • 4. Marine insurers would be willing to provide tailor-made policies as per specific requirements and budget of the insured such as Magma HDI's marine insurance policy.

Marine insurance covers many situations, but the following are the exclusions:

  • 1. Normal wear and tear or leakage.
  • 2. Goods getting damaged during transportation owing to improper packaging.
  • 3. Any damages due to delays.
  • 4. Any damages caused intentionally to incur a loss and make a subsequent claim.
  • 5. Any damages due to a civil disturbance, war, strikes, riot etc.
  • 6. Any damages due to a financial difficulty such as bankruptcy or financial default of the owner of the transport vessel.

It is always a great idea to assess your unique needs before going out to purchase any insurance. However, getting a plan that is comprehensive in nature can never lead you wrong.