How Does Marine Insurance Work: Find Out

 How Does Marine Insurance Work: Find Out

Marine insurance provides financial protection for cargo or goods in transportation via truck/vehicle/ship/vessel/courier, etc. A marine insurance policy protects freight, ship owners, terminal handlers, and other logistics and transportation mediators from many risks.

If the goods are lost or damaged while being shipped from one place to another, marine insurance covers them. The insurance policy covers exposed goods stored onshore or offshore, marine liability or casualty, and hull.

Read along to learn what is marine insurance and some of its other features.

Operation of marine cargo insurance:

A marine insurance policy’s working mechanism can be straightforward. When you buy this insurance, you pass the insurance company the risk of any possible damage. If there is a loss, you must inform your insurance company. A surveyor will be sent to determine the quantum of the loss. Thus, a marine insurance policy gives you peace of mind because you know you have a financial safety net if your goods get damaged during transportation.

The followings may be covered under the Marine Insurance Policy:

  • Covers cargo damage or non-delivery due to casualties, crashes, piracy attacks, or collisions. *
  • Coverage for cargo damage caused by misplacement, fire, explosion, sinking, or stranding. *
  • Provides reimbursement for expenses incurred due to overturns, wrecks, or derailments. *
  • Covers total package loss during loading or unloading due to mishandling. *

* Standard T&C Apply

What’s excluded by a marine insurance policy?

Marine insurance, like any other insurance policy, has exclusions. In the following situation, the insurance company may not grant the compensation:

  • Intentional loss or damage
  • Inappropriate packing
  • Insolvency-related losses

It’s important to remember that the restrictions may be different from one insurance company to the next. Before buying a policy, read the fine print to find out what’s not covered.

The value of marine insurance:

Marine insurance can be necessary for many import-export commercial transactions. Under maritime coverage, both parties may be legally obligated to cover the cost of products. *

* Standard T&C Apply

Marine insurance policy types

There may be different marine insurance policies to meet other people’s needs.

However, it can differ from one insurance company to the next.

  • Import:

Imports from anywhere on the globe to anywhere in India can be covered.

This sort of policy covers air and sea transit options.

  • Export:

Any export from India to anywhere in the world can be covered.

This type of policy primarily applies to air and sea transit modes.

Insurance for inland waterways:

Any goods movement, primarily by road and rail, from somewhere in India to anywhere else can be covered. Reading the policy documents can help in understanding the needs and benefits better, which may be fruitful during an insurance claim.

Choosing the ideal marine cargo insurance policy:

Now that you know what marine cargo insurance is, what it includes and excludes, and how it works, it’s time to find the ideal insurance policies. It’s essential to keep in mind that this can be the same as looking for standard insurance policies. Compare different policies, find out what they cover and what they don’t, and choose the policy that ideally meets your needs.

Lastly, marine insurance benefits anyone who gets a covered interest in the cargo while it’s in transit. Purchasing a marine insurance plan provides financial security and allows you to conduct business without worry.

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

Paul Petersen