Marine Insurance Policy

What is Marine Insurance policy?

International trade has relied significantly on water routes for shipping since ancient times. Ships have long been the principal means of trade-related transportation, long before aeroplanes or railways were conceived. However, in the past, sea routes were fraught with dangers like as severe weather, pirate raids, collisions, and so on. All of these dangers have necessitated the use of maritime insurance, which is thought to be the first type of developed insurance.

Marine insurance, like many other types of insurance, aids in the protection of not only the ship but also the goods it carries and transports. Cargo insurance, freight insurance, and hull insurance are the three types of marine insurance provided for ships, boats, and cargo moved on either of these two carriers.

All ship/yacht owners who use their vessel for commercial or transit reasons are required to get marine insurance.

Who needs Marine Insurance Policy?

This policy is necessary for both corporations and individuals.

Business shipments are typically high in value, and any damage can have a direct impact on the company’s bottom line.

Relocation, whether for a job shift or marriage, is recognised as one of the most stressful life events for an individual.

Whatever purpose you have for transporting your goods, the Marine Insurance policy will safeguard you from material damages.

Why should you opt for Marine Insurance?

Your items are quite valuable to you as a businessperson. It’s a source of income for you. Insuring your goods against any unexpected events while they are being transported ensures your own future and business.

If you’re an individual moving for personal or professional reasons, you’re probably already concerned about a lot of things.

Your household objects are likely to contain memories for you, and you’ve diligently gathered each one as you’ve progressed through life. Knowing that all of your belongings are secure allows you to relax about one thing at least.

What are the major benefits of Marine Insurance?

Marine insurance is advantageous for several reasons: 

It provides comprehensive coverage against a wide range of dangers encountered at sea.

Under marine insurance policies, there are several alternatives and programmes to fit different budgets and requirements.

Customers’ needs and budgets can often be met by customising and adjusting marine insurance policies.

Often, maritime insurance contracts include extensions to offer coverage for damages caused by riots, strikes, and other dangers.

What are the various clauses of Marine Insurance Policy?

There are three major clauses of Marine Insurance. They are as follows: –

Institute Cargo Clause C: This policy provides basic coverage and only covers a limited number of risks. It protects the shipment from things like fire, cargo release in the event of a distress, explosion, and mishaps like sinking, capsizing, derailment, collision, and so on.

Institute Cargo Clause B: It adds another layer of security. It not only includes all of the risk covers provided under Clause C, but it also protects the shipment from events such as earthquakes, volcanic eruptions, and damage caused by rainwater, ocean, river water, and other liquids, as well as loss of packages overboard or during loading and unloading.

Institute Cargo Clause A: It offers the most protection by covering all risks of loss or damage to the products. It also covers losses due to breakage, chipping, denting, bruising, theft, non-delivery, all water damage, and so on, in addition to the risks covered under Clauses B and C.

What is included in Marine Insurance Policy?

A marine insurance policy’s main goal is to protect your funds and possessions while they are being moved by water. As a result, there is no standard list of dangers for which marine insurance will give coverage. The following is a list of some of the major occurrences or losses that a marine insurance policy will cover: –

Shipments for import or export.

Transportation of goods by sea, train, air, road, or post.

Goods are transported by coastal vessels that travel between various ports within the country.

Goods that are conveyed by river-going vessels.

What are excluded from the Marine Insurance Policy?

The following are excluded from the marine insurance policy: –
·        Ordinary leaks or normal wear and tear.
·        Transported goods are packaged incorrectly and inadequately.
·        Delay has caused damage.
·        Damage done knowingly or unintentionally.
·        Civil unrest, strikes, war, riots, and other occurrences create damage.
·        Any harm or loss caused by the cargo vessel’s owner’s insolvency or financial delinquency.