Insurance that includes risks connected with shipping, such as the movement of cargo, ships, and other properties over waterways, is also known as marine insurance. The primary purpose of marine insurance is to protect against the financial losses that can occur due to various perils at sea. its include shipwrecks, piracy, collisions, and damage to cargo, among others.
Marine insurance policies typically cover different aspects of maritime trade and transport, and they can be tailored to meet the specific needs of the insured parties. Here are some key components of marine insurance:
Policies for marine insurance often cover a variety of maritime commerce and transport-related topics, and they can be customized to fit the individual requirements of the covered parties.Here are some key components of marine insurance:
Hull Insurance: This type of coverage protects the physical structure of the ship or vessel against risks such as sinking, fire, and collisions.
Cargo Insurance: This coverage is designed to protect the goods being transported by sea against risks like damage, theft, or loss during the voyage.
Freight Insurance: This type of insurance covers the loss of freight revenue in case the cargo is damaged or lost.
Liability Insurance: This provides coverage for legal liabilities arising from the operation of the ship, including damage to other vessels, ports, or property, as well as injury to passengers or crew members.
Protection and Indemnity (P&I) Insurance: P&I insurance covers third-party liabilities that are not covered by standard liability insurance. Risks include pollution, collisions, and damage to docks or other infrastructure are frequently covered.
1. Risk Coverage: It provides all-round coverage against a wide variety of risks faced while at sea.
2. Worldwide Coverage: Most marine insurance providers offer claim survey assistance worldwide, along with claim settlement assistance.
3. Variety in choices: Different marine insurance providers offer a variety of options and plans under marine insurance policies to suit different budgets and requirements.
4. Customizable: Marine insurance covers can often be customized and adjusted to meet specific needs and budgets of the customers.
5. Several damages covered: Often, marine insurance policies do provide extensions to provide protection against damages caused due to riots, strikes and other such perils.
TYPES OF MARINE INSURANCE
FREIGHT INSURANCE - In Freight Insurance, For Example, If the Goods Are Damaged in Transit, The Operator Would Lose Freight Receivables & So the Insurance Will Be Provided on Compensation for Loss of Freight.
LIABILITY INSURANCE - Marine Liability Insurance Is Where Compensation Is Bought to Provide Any Liability Occurring on Account of a Ship Crashing or Colliding.
HULL INSURANCE - Hull Insurance Covers the Hull & Torso of The Transportation Vehicle. It Covers Transportation Against Damages and Accidents.
MARINE CARGO INSURANCE - Marine Cargo Policy Refers to The Insurance of Goods Dispatched from The Country of Origin to The Country of Destination.
TYPES OF MARINE INSURANCE POLICIES
FLOATING POLICY - Floating in Marine Insurance policy, large exporters may opt for an open policy, also known as a blanket policy, instead of taking insurance separately for each shipment. An open policy is a one-time insurance that provides insurance cover against all shipments made during the agreed period, often a year. The exporter may need to declare periodically (say, once a month) the detail of all shipments made during the period, type of goods, modes of transport, destinations, etc.
VOYAGE POLICY - A specific policy can be taken for a single lot or consignment only. The exporter needs to purchase insurance cover every time a shipment is sent overseas. The drawback is that extra effort and time is involved each time an exporter sends a consignment. With open policies, on the other hand, shipments are insured automatically.
TIME POLICY - Time policy in marine insurance is generally issued for a year’s period. One can issue for more than a year or they may extend to complete a specific voyage. But it is normally for a fixed period. Also, under marine insurance in India, time policy can be issued only once a year.
MIXED POLICY - Mixed policy is a mixture of two policies i.e., Voyage policy and Time policy.
NAMED POLICY - Named policy is one of the most popular policies in marine insurance policy. The name of the ship is mentioned in the insurance document, stating the policy issued is in the name of the ship.
PORT RISK POLICY - It is a policy taken to ensure the safety of the ship when it is stationed in a port.
FLEET POLICY - Several ships belonging to the company/owner are covered under one policy. Where it has the advantage of covering even the old ships. Its also the policy is a time-based policy.
SINGLE VESSEL POLICY - In single vessel policy only one vessel is covered under marine insurance policy.
BLANKET POLICY - In this policy, the owner has to pay the maximum protection amount at the time of buying the policy.
