Why is Marine Insurance so Important?

Why is Marine Insurance so Important?

As the present business global scenario goes, businesses need to send overseas freights to distant lands. While a vast majority of the marine shipments reach their destination safely on time almost always, those always carry an inherent risk. Although a small part of marine shipments suffers from losses due to damage, fire, natural calamities, and theft, the amount of loss could adversely hurt the business and in extreme cases that may force the business to close down. Such a situation should always be avoided at all costs.

Learn more about the various marine insurance coverages in Singapore here: https://allegiance.com.sg/commercial-insurance/marine-insurance/

Unfortunately, most exporters and importers have the wrong notion that the freight carrier will cover the loss or damage to the shipments. Unfortunately, this is not so in reality and, therefore, one must obtain marine insurance coverage to safeguard the business from incurring such heavy losses. While the shipping companies must have minimum marine insurance under the provisions of the United States and international laws, those are hardly sufficient. All these necessitate the need to buy insurance for ocean freights.

This article by Dedola explain the importance of Marine insurance and why you need it.

Marine Insurance and why your Shipments need it

For homeowners and drivers alike, insurance is necessary to protect you and others. But when it comes to international trade, not all importers realize the importance of marine insurance (otherwise known as cargo insurance). It protects you from damage, theft, or loss while in transit. In case you’ve never considered this before, here’s what you need to know. Read more here!

Marine Insurance: Know different types

Marine insurance means the insurance of goods sent from the country where the goods originated to the country where it has to reach. Initially, the term marine insurance meant the goods that were transported by sea for international trading. However, it has a broad meaning and now applies to all transportation modes of transportation. Even the insurance coverage of the goods transshipped by air is called marine cargo insurance.

It is often compulsory and could be the obligation of the exporter or the importer to pay for the same, depending on the contractual terms. However, the need for insurance is above all obligations, because it keeps the business protected against unforeseen losses. Marine insurance could be of several types: Hull Insurance, Machinery Insurance, Protection and indemnity insurance, Liability insurance, Freight, Demurrage & Defense insurance, Freight Insurance, and Marine cargo insurance.

Hull insurance covers the hull of the vehicle. Freight insurance covers the loss of freight due to transit damages.  Liability insurance covers a ship crash or collision and Marine cargo insurance covers the goods dispatched.

This article by Grainmart.in highlights the Marin insurance types, coverage and cost of each one.

Marine Insurance Policy: Type and Process

Marine insurance provides compensation in case of uneventful collateral damage to the consignment during transit. In addition to that, it covers the goods and cargo the ship is conveying. Hence, cargo insurance is a category under marine insurance. Further, it covers marine casualty, marine insurance, and hull vandalism. Thereby, irrespective of the purpose of the ship, it is necessary to incur marine insurance policy. Read more here!

Marine Insurance: Inclusions and Exclusions

Marine insurance has become a common term in the business world. It offers a multitude of coverage for export, import, and transport of cargo from the point of origin to the point of destination.  Different types of marine insurance offer different coverage and they are widely popular. It is a comprehensive policy and available customized formats taking care of legal and contractual requirements for export and import.

A majority of the exporters and importers mistakenly think that marine incurrence covers everything. They fall prey to the jargon of language and ads. But the reality is quite different. As it happens in the cases of other categories of insurance coverage, the insurance providers do whatever they can to wriggle out of claim settlement. So one needs to be sure to examine the proposal and other documents to find out what the policy covers and what it does not. Loss in weight due to evaporation is excluded. Knowing these will save one from harassment.

This article by Shippo explains about the Marine inclusions and exclusions in detail.

Do I Need Marine Insurance… is it included?

Something we urge all of our customers to think about is marine cargo insurance. This covers you for a lot of the things that could potentially go wrong while your goods are on the water. Marine insurance is fairly economical, usually costing our customers around £35-£50. Many of our customers think of marine insurance as an unnecessary expenditure, but they may not be informed about the risks associated with shipping by sea freight. Read more here!

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