What is Marine Cargo Insurance ?
Marine Cargo Insurance is a type of insurance that protects all the goods while in transit, depending upon the needs of the client. According to Marine Institute Cargo clauses, cargo shipped by sea, air, or by land is covered under this policy. This insurance is also known as Marine Insurance.
All the Ship owners could incur not just loss to their ships in the lack of marine insurance. But could incur financial losses in case the vessel is commercially used as a cargo-carrier. Thus, the Marine Insurance refers to much more than the insurance of ships.
Marine Cargo Insurance Policy
The term ”marine” conjures up the sea and mostly in the minds of the writers of the Marine Insurance Act 1906 (MIA). It was, indeed, sea transit. It is the insurance of property as it moves from place to place. While the Act in its
opening sections applies to ”marine losses” and ”marine adventure” and” maritime perils.”
Marine insurance departments insure property dispatched by aircraft and road and rail vehicles as well. Several transits, especially international ones, require two or more varieties of transport. And the Act presents the provision for them.
Marine cargo insurance is a form of property insurance that insures property while in transit. This insurance is against the loss or damage arising from perils. Perils that are related with the navigation of the sea or air. And also to the subsequent land and the inland waterways.
The Act does not explicitly mention air travel nor pure land- based transits. Therefore, it is usual to see a clause in the policy document. It confirms the authority in all the circumstances to ensure the Act. This Act applies to all modes of transportation.
The inclusion of this last sentence allows the insurers to include at their discretion in their policies some other risks. For example, risks related to other means of transport, like crashing, derailment, and overturning. However,
it is to be mentioned that the regular action of the wind and the waves are not considered a peril of the sea.
So, what precisely is the “property” that is the subject of marine cargo insurance? The Act pertains to it as the subject-matter insured. In reality, it can be anything that is in the process of being conveyed from one place to
another place. Most usually, it is the raw materials and components. These are all coming into the assured or the finished products going out.
The style for this type of property is “Goods and Merchandise,” which indicates the traded goods. Also, items of the assured ‘assured’ equipment insure — for example, machinery, office furniture, samples, and engineer’ tools, and showing stuff. Indeed, merely about everything has passed. And, consequently, can be insured as the subject matter insured under a marine cargo policy.
MC Insurance Coverage
The coverage may be provided for individual shipments or under an ongoing contract. It is known as an “open policy.” An open policy is an agreement prepared in general terms covering specified goods on terms agreed upon. It can be issued to cover goods shipped anywhere in the world on a declaration basis.
Coverage can vary as under, based on nature and type.
- All the risks by sea or air or parcel post.
- All the risks of land transit.
- Limited cover by sea, air, parcel post, or the land.
- War & Strikes Risks.
- Land Transit.
- Courier & Parcel Post.
- Haulers Liability.
- Freight Forwarders Liability.
- Project Cargos.
- Stock throughputs.
The Sum Insured is the accepted value. It is most cases will be CIF(Cost,Insurance & Freight) or C&F(Cost and Freight) plus 10% or FOB(Freight On Board) plus 10 to 20%. These circumstances are considered while calculating premiums. It depends on the nature and the kind of cargo and process of arrangement. It also depends on the method of shipment, age, and type of vessel, and the ports.
Cost Of Cargo Insurance :
The Marine cargo insurance policies sometimes have a typical minimum premium of around 150 AED to 2,000 AED. The percentage charged depends partially on the product shipped, i.e., the deductible value varies. It covers 0.1%-2% of your cargo’s value.
Exclusions Of Cargo Insurance
Some of the standard exclusions from this policy are:
- Loss, damage, and the expense attributable to willful misconduct of Insured.
- Common Losses such as loss in weight or the volume of the insured items.
- Loss, damage, and expense caused by inherent vice.
- Loss, damage, and expense caused by insufficient, unsuitable, or defective packing or the preparation of goods.
- Includes stowage in a container or lift van, but only when such stowage is before the addition of insurance or by the insured or by their servants.
- Loss, damage, and the expense caused by the impediment, even if delay is by a peril insured against.
- Loss, destruction, the expense is resulting from insolvency or financial default of owners, managers, charterers, or operators of the vessel.
- Nuclear Weapons Risk.
- War Risk Exclusion.
- Loss, damage, expense caused by or resulting from strikes, lockouts, labor disturbances, riots, civil commotions, or caused by any person.
The need for Broker :
It would help if you had the right marine cargo insurance policy for your commodity. It will also help if you had a marine cargo insurance policy for your voyage and conditions. Dubai Online Insurance in UAE, can arrange bespoke covers for :
- Oil and gas.
- Food grains.
- Coal and scrap.
- Breakbulk shipments, as well as project cargo and many more.
Frequently, it is better to have a broker to find the best value for Marine Cargo Insurance in Sharjah. As an agent, we have partnered with plenty of insurance providers. Thus, we are aware of every minor detail in the process. Hence, we can add value to the process by giving you the best marine and cargo insurance prices in the market. And also by taking care of the hassles involved in the process, especially when it comes to handling claims.
Dubai Online Insurance Services :
Dubai Online Insurance has extensive experience in dealing with a wide variety of goods. Moreover, we comprehensively cover the movement of all kinds of raw material, finished products, and other items. And All those goods which are about the business of our insured under the Marine Inland Transit policies.
These policies are designed to get protected from loss or damage to the cargo during domestic transit, whether by Road/Rail, Sea or by air. For those fearing the financial loss should the cargo be damaged or destroyed, Dubai Online Insurance is the best choice.
We as an Insurance (Tameen) specialist, specialize in the following areas :
- Property All Risk Ins. / Fire Ins.
- Travel Insurance.
- Marine (SEA/AIR/ROAD).
- Motor Ins / Vehicle Ins / Car Insurance
- Building Insurance and Landlord Insurance
- Workmen’s Compensation Ins.
- Contractor’s All Risk Ins.
- Professional Indemnity Ins.
- Health Insurance Dubai
- Third Party Liability Ins.
- House Holder’s Ins.
- Jeweler’s Block.
- Contact Us To Know More….
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