Marine insurance refers to a contract that provides security to your goods while transportation. It is an assurance that your shipment dispatched from the initial point to the final destination is covered by insurance. Having this insurance will cover all your loss along with the damage caused to the means of transport like ships, cargo, terminals, etc from the place of origin to the final destination. The term marine insurance originated when people started to transport their goods and various things through sea routes. In spite of its name marine insurance is applicable for all means of transportation, where goods are dispatched from one location to its desired destination. For instance: if your goods are shipped by air then it is termed as marine cargo insurance.
For any kind of import and export trade, there is an important role played by marine insurance. In case of any damages of goods under insurance, both parties are liable for the payment if they agree upon the terms and conditions. With marine insurance, the subject matter goes beyond the contractual obligations. Before the dispatch of any cargo, you must buy a policy as there are various arguments that can prove the importance of marine insurance. After purchasing your marine insurance you must check out that your goods are insured by any of these three parties:
In India, the process of purchasing marine insurance is very easy. Due to the country's geographical location, several banks, as well as financial institutions, are the places that offer many types of marine insurance.
Some of them are listed below:
The Marine Insurance Act was enacted in India, in 1963. According to Section -3 of the marine insurance act, the term 'marine insurance' is used whenever goods are insured due to loss or damage where the insurer will be liable to bear the charges. The certainty of goods in case of unwanted circumstances during any trade proceedings will be considered by the insurer.
First, add the shipment value and the cost of the flight. Then sum the amount with 10% of the total cost. Multiply the result with the coated premium then you will get the final product which is the amount payable to your premium.
Please note that this list is not exhaustive and is only indicative. Different critical illness insurance policies cover different critical illnesses.
If you are planning to buy a marine insurance policy but still confused about the coverages? Here it is you can understand it by going through several risks which are handled by your insurance policy loaded by three marine insurance clauses :
It covers all your losses that occur due to breakage, chipping, denting, bruising, theft, non-delivery, and all types of water damage(clause a cover clause B and clause C)
It covers the shipment against different natural calamities like earthquake, volcanic eruption, damage due to rainwater(flood), seawater, river water(clause B also cover clause C)
It covers your shipment against events like fire, discharge of cargo in case of distress, explosion, accidents like sinking, capsizing, derailment, collision, etc.
The claim team would verify the details once they received the above documents. Once your claim has been verified, it will be approved or denied. If your claim is approved or denied, you will be notified.
If you have fire insurance then it will cover the risk of fire. The subject matter in this policy is any of your physical assets or property. Here your moral responsibility plays an important role. In terms of fire insurance, you can't expect a profit margin from your damaged assets or property because you have to present the insurable interest before buying a policy and at the time of any fire incident.
However, your marine insurance policy encompasses different types of risks associated with the ocean. The ship, freight, or cargo are the major subject matter. Any kind of moral responsibility clauses of the cargo or the shipowner is not included. In terms of your marine insurance, you can expect a profit amount of up to 10 -15%.
If you are planning to buy marine insurance then you must go through different features provided by the insurer. It will help you to get a policy that is best according to your needs and demands.Also Read - The Important Factors To Know About Marine Insurance