MARINE INSURANCE – A Cushion to your Financial Loss
Since technology is constantly evolving, transportation is still a dangerous industry. You could believe that hiring a reputable carrier and using proper packaging will protect your goods, however different modes of transportation are subject to various losses and damages.
Nothing is really risk-free. Therefore, you require marine insurance to handle these types of damages.
An indispensable resource for handling the losses and damages incurred during transportation is marine insurance. It serves as insurance against financial losses brought on by operations related to water transportation. It addresses the hazards that ship owners, cargo owners, terminal handlers, and other shipping industry middlemen must deal with.
SECURE FINANCIAL’S SIMPLIFICATION – Marine insurance plays an important role in any kind of shipping business by safeguarding you against the risk of damage or loss to cargo, ships or any transport by which the goods or property is transferred, acquired or held between the origin and final destination.
Why you Should Buy Marine Insurance
- RISE IN CARGO THEFT – In the past years we have seen that cargo theft is increasing at an alarming rate which resulted in loss of billions of rupees. What if somebody steals your cargo? In such a situation, marine insurance will help you and you will not have to worry about any financial loss.
- DISASTERS CAN STRIKE ANYWHERE – natural or man-made calamities can take place anywhere and anytime resulting into huge losses. Marine insurance covers most of these calamities except for certain exclusions.
- SAFEGUARDS THE GOODS – Like theft, damage to goods is also very common and can happen to anyone even after taking all the safety measures. So, in order to make sure you don’t face any losses just because of faulty packaging or inadequate ventilation, you should buy marine insurance.
- CARRIERS CAN NOT BE HELD RESPONSIBLE – As per the law, one cannot blame or ask carriers to compensate for the losses incurred. Thus, you cannot really depend on them in case you suffer any losses.
- CUSTOMIZTION – One thing which is really interesting about marine insurance is that you can customize your insurance contract as per your needs. Marine insurance offers flexible solutions for meeting your business demands.
- FASTER HANDLING OF CLAIMS – In most common cases to settle a marine insurance claim takes much less time in comparison to a liability claim. This is valid especially for claims where the cause of damage is uncertain or the claim is for a significant amount and requires a thorough investigation.
- TRANSFER OF COVERAGE – Marine insurance follows the goods, instead of the party who purchased it. If you are the seller and purchase a marine insurance your client will benefit from it after the risk passes to him in accordance with your arrangements.
- AFFORDABLE PREMIUM – If we consider the premiums for marine insurance, they are not very high. But it also depends on the type of goods which you are insuring along with the mode of transport.
Why you Should Buy Marine Insurance
Documents Required
- Insurance Policy Copy with Endorsement If Any.
- Claim Form Duly Filled in & Signed
- Claim intimation letter with acknowledgement
- Invoice copy
- Delivery challan
- Packing list
- Bill of lading with shipped on board certificate.
- Bill of entry
- GST paid certificate.
- Clearing agent’s delivery challan
- Clearing agents’ bill
- Lorry receipt
- Claim lodged on carrier
- Damaged certificate issued by carrier
- Survey reports
- Pre-survey reports if any (for export / import)
- Detail Estimate of Loss Giving Break Up of Labor & Material Charges.
- Set of Photographs of damage Material
- Description of Occurrence in Detail.
- News Paper Cuttings, If Any.
- Loss certificate from Transporter / Ship / Air.
- Fitness certificate of vessel / vehicle.
- Pan Card Copy. GST certificate
- Bank Account No. Bank Name. NEFT Form Along with cancelled cheque
- Estimate of repair from manufacturer.
- Original Repair Bills.
- Payments received, receipt from supplier / manufacturer in Original
- Salvage Value of Damaged Items.
- Set of Photographs of Repair Work Completed.
- Any other additional papers as and when required by Insurance Company / surveyor.
Why Buy Marine Insurance from Secure Financial Services?
What all can you Insure Under Marine Insurance?
MARINE CARGO – INLAND TRANSIT
- INLAND TRANSIT CLAUSE (A) – ALL RISK COVER.
- INLAND TRANSIT CLAUSE (B) – BASIC COVER.
- INLAND TRANSIT CLAUSE (C) – RESTRICTED COVER.
- SRCC (STRIKE, RIOT AND CIVIL COMMOTION CLAUSE).
MARINE CARGO – OCEAN TRANSIT
- INLAND TRANSIT CLAUSE (A) – ALL RISK COVER.
- INLAND TRANSIT CLAUSE (B) – BASIC COVER.
- INLAND TRANSIT CLAUSE (C) – RESTRICTED COVER.
- SRCC (STRIKE, RIOT AND CIVIL COMMOTION CLAUSE).
| Risks | I.C.C(A) | I.C.C(B) | I.C.C(C) |
|---|---|---|---|
| Discharge of cargo at a port of distress. | Covered | Covered | Covered |
| Earthquake,Volcanic eruption or lightning. | Covered | Covered | Not Covered |
| General Average Sacrifice | Covered | Covered | Covered |
| Jettison | Covered | Covered | Covered |
| Washing Overboard | Covered | Covered | Not Covered |
| Entry of sea, lake or river water into the vessel | Covered | Covered | Not Covered |
| Total loss of any package lost | Covered | Covered | Not Covered |
| Any other risk not specifically excluded – ALL Risks | Covered | Not Covered | Not Covered |
| Inland Transit-C offers cover against loss by FIRE & LIGHTNING | |||
| Add-On: Theft, Pilferage & Non-Delivery (TPND) with Extra Premium | |||
| Risks | I.C.C(A) | I.C.C(B) | I.C.C(C) |
|---|---|---|---|
| Discharge of cargo at a port of distress. | Covered | Covered | Covered |
| Earthquake,Volcanic eruption or lightning. | Covered | Covered | Not Covered |
| General Average Sacrifice | Covered | Covered | Covered |
| Jettison | Covered | Covered | Covered |
| Washing Overboard | Covered | Covered | Not Covered |
| Entry of sea, lake or river water into the vessel | Covered | Covered | Not Covered |
| Total loss of any package lost | Covered | Covered | Not Covered |
| Any other risk not specifically excluded – ALL Risks | Covered | Not Covered | Not Covered |
| Inland Transit-C offers cover against loss by FIRE & LIGHTNING | |||
| Add-On: Theft, Pilferage & Non-Delivery (TPND) with Extra Premium | |||
FAQs on Marine Insurance
- Rate is charged on annual turnover
- Need to monitor a single policy
- No hassles of submitting monthly declarations
- Non submission of declarations will not jeopardize claims
- Reduces operational cost of submitting declarations and managing/monitoring different policies
- Manufacturers
- Importers and exporters
- Cargo owners
- Buying agents
- Buyers
Details description of cargo
- Journey details
- SI along with PSL (Per sending limit) and PLL (Per location limit)
- Last 3 year’s claim experience (Not for specific policy)
- Nature of packing
- Leg wise SI for Import export, domestic purchase, domestic sale and inter-deport movement
(Only for STOP proposal)
Note: For sensitive cargo/ODC or Project cargo addition information will be required on case to case basis
When you have an incident to deal with, it is very important, for expediency sake, to take photographs and make a small written declaration as to what has occurred. If it’s a theft, then it should be accompanied by a police report. This is far better than just ringing or writing as it will speed up the process as it will be requested anyway. If you are at sea and you are concerned about running around then seek assistance. Insurers will look favorably upon efforts made to reduce risk and avoid total loss of the craft or personal injury.
