For thousands of years, merchants have travelled abroad to do business. Even after air routes became common, the sea was a major means of trade.If something happens to the shipment, the business will lose a lot of money. Therefore, exporters need marine insurance. Marine cargo insurance is important for exporters to cover multiple causes of damage.
Marine insurance covers international and domestic import and export trade. The policy compensates for lost or damaged shipments and compensates you for the freight. By purchasing marine insurance, the merchant transfers the responsibility of the goods from the main beneficiaries (exporter and importer) to the insurer. Although the term refers to “marine” insurance, it also covers inland trade. All shipments are covered by marine insurance, whether shipped by container truck, train, or ship.
Types of marine insurance
- Ocean marine insurance
This type of marine insurance provides coverage for risks at sea. If the cargo is in transit using a ship or waterway, the exporter requires marine insurance. Ships can be damaged at sea due to natural disasters or human negligence. In such cases, marine insurance will cover the damage to the goods/cargo. Marine insurance also covers against pirate attacks on ships. *
- Inland marine insurance
If you are new to the domain, then you may be wondering what is marine insurance?This type of marine insurance covers the risks associated with domestic trade. Inland marine insurance covers goods transported by road or rail, or goods stored at a specific location. *
What is covered under marine insurance?
Marine insurance covers accidents that occur during sea transportation and other means of transportation for goods. The insurance company provides compensation in the case of a limited set of situations.
- Marine insurance is provided for situations such as fire, explosion, sinking, and cargo entanglement.
- Covers the costs caused by land vehicle collisions, rollovers, and derailments.
- Expenditures are covered in case of cargo unloading from accident-prone/collective ports.
- Protection from natural disasters, such as earthquakes and lightning.
* Standard T&C Apply
Example
On November 30, 2020, a large container stack collapse occurred in the Pacific Ocean. The ship was on its way from the salt fields of China to Long Beach, Hawaii. The incident was caused by severe weather conditions, which are a common threat to mariners. The storm threw 1,816 containers off the ship.
Thiswas the second largest cargo loss in history. The investigation found that 4,500 TEU may have been lost or damaged. To avoid such terrible losses, exporters should have ocean shipping insurance.
The ocean is unpredictable and has a tremendous impact on global trade. Many ships and container ships are exposed to natural disasters and other maritime hazards.Commercial insurance, like marine insurance, is essential for exporters looking to minimize losses. You can also easily buy marine insurance online. Similarly, you can go for insurance renewal through digital mediums. * Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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