Marine insurance gives you peace of mind. It means being covered against costly risks, such as loss of life, damage to cargo, oil spills, and the like. Now, which insurance policy should you take out? ๐ค
Here are ๐ต ๐ถ๐ป๐๐๐ฟ๐ฎ๐ป๐ฐ๐ฒ ๐ฝ๐ผ๐น๐ถ๐ฐ๐ถ๐ฒ๐ you may come across when youโre in the process of getting your ship and cargo covered.
1๏ธโฃ ๐ฉ๐ผ๐๐ฎ๐ด๐ฒ ๐ฃ๐ผ๐น๐ถ๐ฐ๐
Itโs valid for a specific journey, from the port of departure up to the port of destination. This type of policy tends to be purchased for cargo.
2๏ธโฃ ๐ง๐ถ๐บ๐ฒ ๐ฃ๐ผ๐น๐ถ๐ฐ๐
Itโs issued for a particular period – often for a year – regardless of the number of voyages. Itโs generally used for hull insurance.
3๏ธโฃ ๐ ๐ถ๐
๐ฒ๐ฑ ๐ฃ๐ผ๐น๐ถ๐ฐ๐
Your insurance will cover a particular voyage for a specific period (e.g., from Lisbon to Luanda, and then for 24 hours after arrival). It may be beneficial to both hull and cargo insurance.
4๏ธโฃ ๐ฉ๐ฎ๐น๐๐ฒ๐ฑ ๐ฃ๐ผ๐น๐ถ๐ฐ๐
The value to be indemnified is decided at the time that you sign the contract, so there wonโt be any disputes in case of loss. The insured value doesnโt necessarily match the actual value. Its calculation includes:
ยท Cost of goods
ยท Freight
ยท Shipping charges
ยท Insurance
ยท Some margin of profit (generally 10%)
5๏ธโฃ ๐จ๐ป๐๐ฎ๐น๐๐ฒ๐ฑ ๐ฃ๐ผ๐น๐ถ๐ฐ๐
The amount of loss is determined once it occurs. Needless to say, evaluation at the time of damage may be challenging, so this isnโt a common policy in marine insurance.
Besides, if youโre in international trade, you should take into account that unvalued policies donโt contemplate your profit margin.
6๏ธโฃ ๐๐น๐ผ๐ฎ๐๐ถ๐ป๐ด ๐ฃ๐ผ๐น๐ถ๐ฐ๐
Instead of purchasing a marine policy for each shipment, you may take out a policy for a lump sum that will provide cover against all shipments made during a certain period of time.
When the cargo is dispatched, you must make a declaration stating its details, and the amount of your policy will be reduced to that extent.
7๏ธโฃ ๐๐น๐ผ๐ฐ๐ธ ๐ฃ๐ผ๐น๐ถ๐ฐ๐
Sending goods by rail or truck to the port of departure? Go for a block policy, which will cover both land and sea risks.
8๏ธโฃ ๐ช๐ฎ๐ด๐ฒ๐ฟ ๐ฃ๐ผ๐น๐ถ๐ฐ๐
This policy is based on mutual understanding, and compensation is only provided if the insurance company finds the damages worth the claim. It isnโt a written policy and it canโt be enforced legally.
9๏ธโฃ ๐ฆ๐ถ๐ป๐ด๐น๐ฒ ๐ฉ๐ฒ๐๐๐ฒ๐น & ๐๐น๐ฒ๐ฒ๐ ๐ฃ๐ผ๐น๐ถ๐ฐ๐ถ๐ฒ๐
Wondering whether a specific claim is covered under the clauses of your insurance policy? Let us help you navigate your claim ๐จโโ๏ธ
We are Claimar, your Third Party Administration (TPA) management partner, skilled and expert in marine services.
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