Marine insurance refers to insurance that covers loss of cargo or damage caused to ships, vessels, terminals, and any transport in which goods are transferred or acquired between different points of origin and their final destination. This policy provides a haven for shipping companies and couriers because it protects them from expensive potential losses while transporting goods by water.
In spite of following laws and regulations, transporters cannot control damages caused to their cargo or vessel due to natural occurrences. Situations like encounter with pirates, cross border conflicts can also disrupt the voyage and are quite common in water transportation. This can additionally cause a significant financial hardship for businesses. This is where a marine insurance policy comes to the rescue. Different policies are available to provide coverage according to the requirements of the business.
To insure individual transactions would be administratively burdensome for large commercial firms and establishments having huge volume of trade. Open policies provide automatic and continuous protection to all consignments of such insured. Open policies are normally issued for a year. If they are fully declared before that time, a fresh policy may be issued, or an endorsement placed on the original policy for the additional amount. On the other hand, if the policy has run its normal period and is cancelled, a proportionate premium on the unutilised balance is refunded to the insured if full premium had been earlier collected. The Open policy will cease to operate upon expiry of policy period or on exhaustion of sum insured whichever is earlier. Hence, the insured should make sure that the sum insured is enhanced by additional premium in case of possibility of it being exhausted before the expiry of the policy.
This policy is valid for a single transit only. The policy is usually issued before the voyage begins. The coverage will as soon as the voyage ends. The specific voyage policy must show complete details of the risks covered. It should contain particulars of conveyance/Vessel name/ Bill of Lading/ Air Way Bill / Consignment Note and date, sum insured terms and conditions of cover, voyage, cargo description etc.
Here at DgNote we have designed the product keeping the requirements of trade users in mind. You can buy marine insurance online at attractive premiums at a click of a button.
|Risk Coverage||All Risk||Basic Risk|
|Breakage of Bridges|
|Collision with or by the carrying vehicle|
|Overturning of carrying vehicle|
|Derailment or accident or like to carrying vehicle/railway wagon|
|Non delivery of entire consignment or packets|
|Fresh and Rain water damage|
|Damage by hooks, nails, oil, mud, acids and other extraneous substances|
|Any other risk not specifically excluded under the policy|