Marine insurance covers the individual from the loss or damage of cargo, ships, terminals, and any other transport in which the property is being transferred, acquired, or held between the points of origin and the final destination. Under Marine Insurance, both onshore and offshore property is usually covered, along with casualty and hull damage.
Since transportation of goods through the marine medium involves a complex, risky process, which depends on both, natural situations and man-made, it is a wise act to purchase marine insurance to cover the risks associated with the goods getting transported through this medium. However, before purchasing this insurance, one should be aware of the various types of marine insurance in order to pick the most suitable one for your business.
The types are as follows:
Hull and Machinery Insurance: This insurance type is using purchased by shipowners. The hull is claimed to be the main supporting body for the vessel without masts. Thus, hull insurance protects the applicant from any mishap to the ship. Along with the hull insurance, it's advised to also purchase machinery insurance to cover the machinery of the ship. This ensures the applicant against mechanical, operational, and electrical damage to the ship machinery. Since both insurances cover the ship as a whole, it is jointly issued as Hull and Machinery Insurance by the insurance companies in India.
Marine Cargo Insurance: Cargo owners get exposed to the risks of mishandling of the cargo at the terminal, and during the journey of the ship. Sometimes the cargo may get lost, damaged, or misplaced, hence, to protect the cargo owner from such financial losses marine cargo insurance is issued against a suitable premium payment. This insurance also comes with third-party liability insurance that covers damages done to the railway track, port, ship, other cargo or humans due to your cargo.
Liability Insurance: Under certain situations like when the ship gets exposed to a collision, crash, or piracy attack, the valuable cargo gets exposed to high risks. Moreover, the crew members and other peoples life on the ship is also danger. Thus, it's suggested to obtain the appropriate liability insurance that reimburses the ship owners out of any such liabilities due to events not under control.
Freight Insurance: This section protects the loss of freight. If the freight gets lost or damaged or the ship is lost, the shipping company won't have to bear the loss. They'll get compensated for the loss through this type of insurance.
Marine insurance's basic requirement is to give you peace of mind while you're conducting the business. Here is how it works:
While purchasing marine insurance, do check the companies and policies before finalising. The certain key points to bear in mind are as follows:
Companies Offering Marine Insurance in India
India is surrounded by water from three sides, and shipping business is a vital sector. A huge volume of cargo is handled at these ports, thus, availing this insurance becomes extremely vital.
Following lists a few companies that provide marine insurance in India:
When conducting business involving cargo and seaways, it is a wise thought to opt for marine insurance. Some of the advantages of purchasing it are: