Today’s article is going to be taking a different shape than what it used to be on this blog before. In this article today about marine cargo Insurance FAQ we are going to be focusing on the frequently asked questions and answers about marine cargo insurance.
If you have been having answered questions about marine cargo insurance then make sure you read this article to the end because all your questions will be answered.
Marine Cargo Insurance FAQs
What is the marine Insurance Policy?
The marine insurance cargo policy is a type of insurance that simply protect goods and services while they are in transit. This policy protects goods and services while they are at sea, rail, roads, and waterways in the islands.
What are ‘maritime perils’?
The marine policy protects items or goods and services that are in transit against maritime Parils. Maritime Parils is any form of damage that usually occurs to an item while that item is in transit in the sea, namely sinking, stranding or collision, or fire, war perils, capture, pirates, thieves, jettison, washing overboard, and any other perils of that kind. These are the dangerous marine cargo insurance that helps protect.
What is the Importance of Marine Cargo Insurance?
Just like any other form of insurance marine cargo insurance simply protect you against loss of properties. It also helps to protect your Investments by covering them with insurance so that they get replaced if they are damaged. At any event of loss or there is damage the marine cargo insurance will be responsible for replacing them.
What Does Marine Cargo Insurance Cover?
The marine cargo insurance policy covers individual assets in three forms. We have the Institute Cargo Clause (All Risks) – ICC(A) which protects against basically all forms of transition risks unless explicitly excluded. These are risks that include ordinary leakage, unseaworthiness of the vessel and misconduct of the insured.
The second policy that the maritime cargo Insurance offers is b.Institute Cargo Clause (Named Risks, Broad) – ICC(B). This policy covers only named risks such as Fire or explosion, collision or contact of vessels, entry of sea water, earthquake, volcanic eruption, washing overboard, discharge of cargo at the port of distress, overturning/derailment of land conveyance, total loss of package overboard during loading/unloading, general average, etc.
The last and final policy which covers only a few names the risks is the Institute Cargo Clause (Named Risks, Narrow) – ICC©. Which only covers fire or explosion, the vessel being stranded, sunk or capsized, overturning or derailment of land conveyance, collision or contact of vessel with any external object other than water, discharge of cargo at a port of distress, and loss or damage caused by general average sacrifice, jettison or dumping of goods.
What are the Features of Marine Cargo Insurance?
Marine cargo insurance offers various features such as:
- Proposal and acceptance
- Payment of premiums
- Principle of contribution
- Principle of subrogation
- Contract indemnity and others.
What are the five principles of marine insurance?
Define principles of marine insurance includes the principle of insurable interest, the principle of utmost good faith, indemnity, proximate cause, and loss minimization. These are the five basic principles of the marine cargo insurance company.
Is Marine Insurance Compulsory?
Marine insurance is not compulsory to have ever if you want to minimize losses and all the things that can damage your business and your products that are moving in the sea and other places you need marine cargo insurance. Just as you need car insurance to help repair your car or replace it when it is damaged you need marine insurance in case there is an unforeseen circumstance.
How is Marine Cargo Insurance Different from Others?
Marine cargo insurance is different from others because it helps to ensure vessels against physical damages and other forms of damage. The major difference here is that all the types of insurance do not focus on ensuring verses against physical damages but focus on other forms of damages.
What is not Covered by Marine Cargo Insurance?
It is not all damages to your car go that are covered by the maritime insurance policy. Some of the that means is not covered by marine cargo insurance include Fire or explosion, collision or contact of vessels, entry of sea water, earthquake, volcanic eruption, washing overboard, discharge of cargo at the port of distress, overturning/derailment of land conveyance, total loss of package overboard during loading/unloading, general average, etc.
How is the cost of Marine Cargo Insurance Determined?
They are different factors that affect the cost of marine cargo insurance and they are listed below:
- The risk associated with the origination and destination of the goods and services.
- If the goods are more susceptible to damage or not.
- The type of packaging that is being used to package the goods.
- The type or the means of conveyance
- The type of valuation and the limits that are provided and others.
These are some of the factors that determine the cause of the marine cargo insurance that you are going to be paying if you have a policy in place.