Marine insurance policy is a contract by the insurer undertakes to indemnify the assured in manner and to the extent thereby agreed against marine losses, it mean, the losses incident to marine adventure.
Marine insurance is ancient form of insurance . Infect, the institution of general average, under which the participants in a maritime venture contribute to losses incurred by some for the benefit of all, may itself be looked on as a primitive form of self-insurance.
Marine Insurance Covering policy
Marine Insurance covering aria are following:
- Physical or structural damage vessel due to collision with another submerged or above-water vessel.
- Damage to your or others’ property on board and bodily injuries.
Marine insurance will also cover your ship and cargo if you face any problems while transporting goods. Furthermore , it will cover liabilities in the event of damage or loss of the goods.
Types of Marine Insurance
There are different types of marine insurance cover to cater to different needs. Let us see what they are.
1. Freight Insurance
Freight insurance protects merchant ship’s owning corporation. For example, if you lose the cargo due to an accident, freight insurance will cover the losses.
2. Freight Demurrage and Defense Insurance
This one is commonly known as FD&D or defense. This marine insurance covers legal costs claims and handling assistance for a broad range of disputes not covered by P&I, Hull, or machinery insurance.
3. Hull Insurance
This marine insurance covers your vessel’s hull and torso, along with other pieces and articles of the ship’s furniture. You can take out hull insurance as an owner to avoid any damage or loss to your ship, boat, or vessel in case of an accident.
4. Liability Insurance
A liability marine insurance policy offers compensation for any liability caused due to your ship colliding or crashing, or any form of induced attacks.
5. Marine Cargo Insurance
If you are a cargo owner, you are at risk of mishandling the cargo at any stage, from handling at the terminal or during the voyage. This may result in loss, misplacement, or damage to the goods it protect your interest as the cargo owner, marine cargo insurance will cover your losses against an adequate premium payment.
6. Machinery Insurance
This insurance coverage gives you protection for all essential machinery on-board. The insurance company will compensate for any operational damage to the ship. However, it will require a survey and approval from the surveyor.
7. P&I Insurance
P&I stands for Protection and Indemnity Insurance, provided by P&I club. This club is a shipowners’ mutual insurance coverage service to focus on the damages or losses to third-party goods that other standard marine insurance policies may not cover. Insurance of ship against marine and war risks are mainly concerned with Cargo insurance i.e. insurance provided against various perils related to import or export of goods
An appreciation of the part played by marine insurance is essential to an understanding of the shipping industry. With certain exceptions, such as claims for death and personal injury and claims of seamen for wages, the great majority of claimants have insured themselves. The shipowner carries hull insurance on his own ship and protects himself against claims by third parties under a variety of arrangements. Any case of property damage to a ship or its cargo or to ships in collision resolves itself into a settlement between insurance carriers.
Benefits of marine insurance?
Marine insurance plans are essential for a variety of reasons. One of the main reasons is that when it comes to watercraft and seafaring vessels, accidents are very common. Not only that, but also very expensive! Getting a personalized marine coverage plan can be the difference between a small accident and one that puts you in a very financially binding situation.
Some of the main benefits of marine insurance include:
Save Money
As we mentioned, boat repairs can be extremely costly. Whether for maintenance or the result of an accident, these repairs can run you tens of thousands of dollars if you are not properly covered!
Peace of Mind
As a marine business manager, you most likely understand the daily stresses and fast-paced nature of this business. Accidents can happen at any time, and you don’t want to be caught unprepared when they inevitably do occur. With a properly designed marine insurance plan, you can focus on getting work done and not about how you will pay for the damages related to a recent accident.
Liability Coverage
In the same way that you could hit another car on the road, accidents can also take place in the water. If you’re found to be the one at fault for an accident that involves another watercraft or person, you’ll require liability insurance to cover the damages and legal costs associated with this accident. Considering how expensive boat accidents can be, this is a significant kind of coverage and an important advantage of having a well-designed marine insurance plan tailored to your needs.
Marine insurance plans are vital importance to businesses involved in the marine industry. They can help you be protected from all of the main risks that your business faces while also ensuring that you can focus your energy on running a great business and not on your insurance concerns.
