Marine insurance is a sort of insurance that covers cargo losses or damage to ships, cargo vessels, terminals, and any other form of transportation that is used to move or acquire goods between different points of origin and their final destination. It protects from transportation-related losses and acts as a crucial safety net for shipping companies and messengers against potential losses while transporting goods by water.

Water transportation is regularly impacted by external variables, such as weather hazards, encounters with pirates, and international disputes, and the consequent damages can put ship owners in a very difficult financial situation. Hull insurance protects the interests of shipping businesses and transporters in this situation by providing them with the insurance coverage they need to combat potential losses.

Importance of Marine Insurance

Marine insurance is necessary for many import-export-trading procedures. Each party is liable for the payment of the covered articles upon acceptance of the agreements. Even though the issue goes beyond contractual obligations, there are many solid reasons to buy marine insurance before shipping the export goods.

During transit, one of the following three parties requires to provide goods insurance:

• Forwarding Agent
• An exporter
• One who imports

Anyone involved in the movement of products may also use it.

Now we are going to discuss major types of Marine Insurance:

Freight Insurance In the case of freight insurance, for instance, the operator can lose freight receivable if the products are damages in transit, therefore the insurance will base on reimbursement for freight loss.

• Liability Insurance

The purchase of marine liability insurance serves as compensation for any liability resulting from a ship colliding or crashing.

• Hull Insurance

The hull and torso of the vehicle are covered by hull insurance. It protects the conveyance against damage and mishap

• Marine Cargo Insurance

The insurance of commodities shipped from the country of origin to the land of destination is referred to as marine cargo policy.

How to Calculate Marine Insurance Premiums?

• Shipment value and the cost value
• 10% of the total cost
• Multiply the amount by the quoted Premium
• Amount Payable as premium

What is not covered under Marine Insurance?

1. Delivery Issues
2. Renovations and repairs
3. Bad Quality Goods
4. Intentional loss
5. Personal Insolvency
6. Wars and Situations

Which Clauses Cover Marine Insurance?

Insurance companies offer clients various types of clauses that cover marine insurance for its clients like:

      1. Maximum Coverage ( Clause A)

It covers losses due to breakage, chipping, denting, bruising, theft, non-delivery, and all water damage. This clause also covers clauses B and C.

      2. Additional Coverage (Clause B)

It covers the shipment against events such as earthquakes, volcanic eruptions, and damage due to rainwater, seawater, river water, etc. This clause also covers clause C.

      3. Basic coverage ( Clause C)

It covers the shipment against such as fire, discharge of cargo in case of distress, explosion, accidents like sinking, capsizing, derailment, collision, etc.

Features of Marine Insurance:

Marine insurance has various attractive features:

• Acceptance of the offer
• Coverage
• Payment of Premium
• Insurable Interest
• Contract of indemnity
• Claiming process
• Flexibility

Conclusion:

Insurance companies offer unlimited benefits to their clients, for example, it acts as a financial safety net in the event of unfavorable circumstances. Upon payment of an additional fee, add-on-covers provide improved insurance against situations such as terrorism, war, etc. Marine Insurance also helps in overcoming business losses.

Another benefit you will get if you get an Insurance policy is that when goods are insured while being transported, whether, by land, air, or sea, it means that, if the cargo is destroyed or lost during transportation, the party that had "technical" ownership will be compensated or given a replacement.