Thewordmarineinmarinecargoinsuranceisamisnomer.Itindicatestotheuninitiatedthatthistypeofinsuranceonlycoversgoodstransportedbywater.Whereinreality,marinecargoinsurancecoversgoodsbeingshippedbysea,air,road,oranyothermodeoftransportation.
Marinecargoinsuranceisamust-haveforcargoowners,shippingcorporations,andshipownerstoprotecttheirinterests.Furthermore,inmostcases,theexportcontractsrequiretheexportertoobtainmarinecargoinsurance.Orelse,theexportcontractwontcomeintoeffect. Air freight forwarding Cyprus
Hereiswhatthisarticlewillcover:
- Howdoesmarinecargoinsurancework?
- Typesofmarinecargoinsurancepolicies.
- Whatdoesmarinecargoinsurancecover?
- Whattolookforwhenpurchasingmarinecargoinsurance?
- Importantclausesinmarinecargoinsurancepolicies.
- Frequentlyaskedquestionsaboutmarinecargoinsurance.
HowdoesMarineCargoInsuranceWork?
Marinecargoinsurancetransfersalltheliabilityfromtheinsuredtotheinsurer.Thatmeansthattheinsuranceproviderwillofferfinancialcompensationincasethecargogetsdamagedorlostintransit,withtheexporternotliableforanylosses.
Asstatedearlier,thevastmajorityofexportcontractsplaceanobligationontheexportertopurchasemarinecargoinsurance.Thisisdonetomakesurethatthepurchaser/consignersinterests/propertyareadequatelyprotected.
TypesofMarineCargoInsurancePolicies
Marinecargoinsurancepoliciesusuallycomeinthreetypes:
SpecificPolicy
Underthetermsofthespecificpolicy,onlyasinglespecificshipmentiscoveredagainsttheft,lossoranyotherkindofdamagementionedinthepolicy.Theprotectionwillbeavailableforthetimeperiodstipulatedinthepolicy.
OpenPolicy
Theopenpolicyallowstheproposerandtheinsurertostrikeanagreementunderwhichallthegoodsfallingwithinthatagreementwillbecoveredforaspecificperiod.Openpolicyalsoallowstheagreementtocontinueindefinitely,pendingtheassentofbothparties.
OpenCover
Theopencoverpolicyisanagreementinwhichtheproposeragreestobuymarinecargoinsuranceforallthecargoesthatplacethemunderanobligationtopurchasetheinsurance.Underthetermsofopencoverpolicy,theinsureralsoagreestoprovidecargoprotectionfortheinsurer.
WhatdoesMarineCargoInsuranceCover?
Dependingonthepolicypurchased,yourmarinecargoinsurancemightcompensateforthelossordamagetoyourgoodsattributabletovariousrisks.Theserisksincludebutarentlimitedto:
- Sinkingofthevessel.
- Accidenttotheconveyancecarryingthecargo.
- Lossofpackageduringloading/unloadingfromtheconveyance.
- Terrorism,piracy,war,strikes.
Unlessstatedotherwise,packingofyourgoodsormerchandizeisntcoveredundermarinecargoinsurance.Ifyouwanttohaveyourpackingmaterialscovered,youmayhavetoasktheinsuranceprovidertoaddaspecialclausetoyourpolicy.
WhattoLookforWhenPurchasingMarineCargoInsurance?
Hereiswhatyouneedtoconsiderwhenbuyingmarinecargoinsurancepolicy:
Coverage
Itisano-brainerthatyourmarinecargoinsurancepolicymustcoveralltherisksthatmayariseduringthecargosjourney.Theserisksincludebutarentlimitedtofire,accident,piracy,earthquake,etc.
Premium
Whenpurchasingapolicy,strikeabalancebetweentheinsurancecoverandpremium.Thatmeansthatwhileyourpremiumshouldntbesohighastobecomeunaffordable.Itshouldneitherbetoolowtodepriveyouofmuch-neededcoverage.
Exclusions
Eventhepriciestpolicyplanswillhaveasizeablenumberofentriesundertheexclusionstab.So,beforeyousignonthedottedline,readtheentriesundertheexclusionstabandmakesuretheyarentofimportancetoyou.
Claimsettlementprocess
Howearly/easilytheinsurerssettlesclaims?Togetananswertothisquestion,consultpartieswhohavepriorexperienceofdealingwiththeinsuranceprovider.Steerclearofinsurersthatwillinglydelayclaimsettlement.
