The Important Factors To Know About Marine Insurance

The Important Factors To Know About Marine Insurance Square Insurance - 24 Feb 2022

No doubt we have developed our technology, communication, and transportation, but the risk of the transportation business remains the same as it was in the earlier period. However, you can minimize the risk by a trustworthy logistic service provider and cargo marine insurance. Before transporting your goods the pre-analyzation of several risks that can cause damage to your product will be a wiser option. Having marine insurance provides safety to your goods. During transportation, your goods are exposed to several risks which can create a financial burden. So to avoid such circumstances you must purchase marine insurance that covers all your losses and provide financial safety.

What Are The Things That You Need To Consider About Marine Insurance?

Here are some factors listed below that you must look at before purchasing any marine insurance.

1. Safety OF Goods

Marine insurance enables coverage of your losses or damages of your cargo as well as the goods or materials which are shipped from the initial point to the final destination. It is essential to buy marine insurance if your goods are exported or imported from a distant location. The damage or losses which your goods have suffered during the shipment is covered by the marine policy. That's why it is considered as the safeguard of goods.

2. Protection Against Calamities

Before purchasing insurance you must check whether it covers losses against calamities. Generally, calamities are classified into two broad categories: man-made and natural. Floods, theft, fire, earthquake, etc are some examples. If you purchase a policy without proper inspection then you might have to suffer the loss during an accident. Therefore before buying a policy you must figure out the chances of damage that can occur to your product during any shipment. Besides this, you should check about the protection claimed by your insurer against several calamities.

3. Several Categories To Look For

Marine insurance is split into various categories ranging from cargo insurance, hull insurance, marine liability insurance, freight insurance. Depending upon your needs and requirements you can select any of them. You should also consider the nature of goods and the type of voyage before buying a policy in India.

Types To Consider

Valued insurance, floating insurance, time voyage insurance policy, and unvalued insurance are several types of marine insurance currently present in the market. You can choose any of these policies according to your needs and demands. Just remember that before purchasing you must be clear about your requirements. Proper planning can help you to reduce the chances of loss and regret in the future.

Why Do You Need Marine Insurance?

The reasons for purchasing marine insurance are listed below.

1. Goods Are Vulnerable To Theft

We all know that only valuable and important things are shipped through transportation. In the process of shipment from point A to point B, possibilities are there that it can attract the attention of any thief or robber. The fact is that both the interior and exterior areas bear the same risk of robbery because the route of the shipment of the consignment by the various companies is known to all. Chances of robbery also increase by the negligence of some drivers who take naps or shortcuts while delivering packages. In most cases, pricey items were the central target of many thieves besides common items such as foods are also stolen which leads to major losses. These losses of your stolen items can be claimed if you have marine insurance.

2. Loss Or Damage In The Sea

In spite of good preparation for any shipment through the sea, there is always fear as your goods are susceptible to various elements. Though the shipment process is getting bigger and reliable nowadays, there are still chances of damage to your goods because of severe weather changes. Delivering shipments safely without any damage is the first priority of shipment companies. Generally, in case of damage, your insurance provider compensates the loss as per the terms and conditions. An extra amount is not released to the proposer in any circumstances. However, the best thing about cargo insurance is that it not only covers the invoice amount but also covers all your

3. Carriers Liability

If you are shipping fragile but expensive items then the chances of damage or loss increase. To maintain the product's safety and prevent unwanted circumstances you must purchase marine insurance. Carrier's liability is applied in a limited amount due to the terms and conditions applied to a contract as per different laws like international and local. There is a special formula that is used to calculate the amount based on the actual weight of the goods. The formula of calculation varies with respect to the transportation modes and applicable laws of transport.

4. Rapid And Smooth Claim Settlement

It takes less time to claim marine insurance as compared to a liability claim. This clause is applicable if the claim required investigation. The claiming process becomes easier if you have a registration for a specific amount or the cause of damage is unidentified. The carrier can oppose in case of uncertain damage where he is not liable for any damage or loss of the goods. In such cases, the claimant has to demonstrate the reason for loss with the help of proper evidence.

Also Read - Guide To Marine Insurance

Who Can Buy This?

If you are into the business of selling or buying then you can buy this policy. Besides, financers can purchase marine insurance to safeguard and protect their goods.

The Major Exclusion

If you are in an import or export business then you should know that the carrier will not bear a loss of the damaged goods while transporting. You must be aware of this before buying marine insurance.

Affordable Premium

The premium of marine insurance is not very expensive. Your premium amount may increase or decrease depending upon the insured goods and the mode of transport. The transportation of goods via roadways and airwaves is also covered with marine insurance. Apart from these during international shipments, your policy will cover the damages that occurred to your product during transportation.

Final Words

You can't eliminate the risk of damage while shopping for something. The loss during a new start-up can create a financial burden for you. Though marine insurance provides multiple benefits for a wide variety of business goals. Hence you must have marine insurance if you are into a shipping business where you have to deliver multiple items regularly.