Your Guide to Understanding Marine Insurance in India

Globalisation has facilitated the entire world becoming into one huge market. This encourages global trade thereby creating demand for products that aren’t produced in a specific country. To facilitate this demand, international trade comes the picture. Waterways are the primary transportation medium that facilitate such international trade. This process is often complex since it depends on not only natural situations during the journey, but also other man-made factors that are involved. To protect against these different perils, a marine insurance comes to the rescue.

What is a marine insurance?

Marine insurance is a form a commercial insurance policy offered to ship owners, car owners and other intermediaries that are either involved in shipping business or opt for transportation by way of waterways. There are various conditions like weather, pirates, navigation issues, cargo handling issues that can damage the consignment. To protect against these perils that are faced during the transportation activities, marine insurance is handy. These damages often lead to a financial loss that negatively impact the business operations. Thus, it is recommended to insure these good with a marine insurance cover. Now that we understand that what is marine insurance, let’s look at the various types of marine insurance plans.

What are the types of marine insurance plans?

Before finalising on the type of marine insurance policy to buy, you must be aware of the different types that can be best suited depending on your requirements. The following are the different types of marine insurance policies –

Hull and Machinery insurance: Hull is the main supporting part of the ship without any masts. With damage to such hull, the structure of the vessel is compromised thereby compromising its safety. An insurance for such component is critical and thus opted by ship owners. In addition, the machinery insurance goes hand in hand since it is essential for the cargo to be loaded and unloaded on the ship. Thus, to avoid any financial loss due to such mechanical damages to the machinery, a hull and machinery insurance is essential. * Standard T&C Apply

Marine cargo insurance: Cargo transportation is primarily carried on using the marine mode of transportation. During such transportation, the cargo owners face the risk of mishandling of cargo thereby damaging your consignment within. In addition, these situations can also witness damage and loss of consignments and thus, to avoid a financial loss to your busines, a marine cargo insurance must be bought. This policy also comes with a third-party insurance coverage caused to the port, railway track, ship, other cargo, or the personnel managing such cargo. * Standard T&C Apply

Liability insurance: Ships are often exposed to crashed, collisions, or pirate attacks and siege. During such events, the consignments in the ship are at a risk of not making it to their intended destination. A liability insurance policy indemnifies the owners of any such liability due these events beyond their control. * Standard T&C Apply

With these different types of marine insurance plans, make sure to select a policy that checks all your requirements depending on the coverage required for your cargo. In addition, you must keep in mind the various principles of marine insurance which are listed below –

Principle of utmost good faith
Principle of insurable interest
Principle of indemnity
Principle of cause proxima
Principle of loss minimisation

With these different principles in mind, you can understand the terms of the insurance contract helping you know the policy terms thoroughly. Remember that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.