What is Marine Insurance?
Marine Insurance is the oldest form of insurance and can be describe as mother of all insurance. It is believed that it was originated in England owing to frequent movement of ships for trade and commerce. This is insurance id connected with the transportation of the goods. These goods are exposed to damage and loss from numerous perils associated with transportations. Once the goods moved to one place to another they are no more in custody of the owner or a seller. They are rather in the custody of third party called carrier and face various risk of transit.
What it covers?
This insurance is a contract between the insured and the insurance company whereby insurance company agrees to indemnify insured against losses arises from the various risks of transportation. The mode of transit can be sea, rail, road, courier, air and others. Generally the goods are covered for invoice value plus 10% as over head charges.
Types of Marine Policy
▶ Cargo Insurance for inland
▶ Cargo Insurance for Export or Import
▶ Hull and Machinery Insurance
Marine Insurance indemnites for
▶ Fire or explosion
▶ Vessel or craft being stranded grounded sunk or capsized
▶ Overturning or derailment of land conveyance
▶ Collision or contact of vessel craft or conveyance with any external object other than water
▶ Discharge of cargo at a port of distress
▶ Earthquake volcanic eruption or lightning,
▶ Jettison or washing overboard
▶ Total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft
Who should buy this?
All the exporter, importer or companies who regularly send their goods by sea, air, road or any other mode of transport should by marine insurance. Transporting goods are risky affair and the damages can be severe. It is not about taking a risk with insurance company but it is transferring a risk to insurance company.