Page 39 - Insurance Times January 2018 Sample

Coverage is made as per International Institute Cargo 4. Marine Insurance is also available for Cargo
Clauses (ICC) - A clause for sea voyage which has the well Ships (Hull Insurance)
defined terms, conditions, exclusions, period of coverage, Marine Insurance is available for cargo ships also called
loading/unloading coverage, warehouse to warehouse as Marine Hull Insurance. The aim of Hull insurance is
coverage etc. with add ons like War & Strikes Riots and to protect the ships, its machinery and equipment from
Common Commotions (SRCC). unforeseen dangers and conditions. This insurance
covers all kinds of vessels navigating in any permissible
Marine insurance policies have a very fluid underwriting water body. The use of bigger vessels, such as the
process, and most policies are open policies which can be massive 18,000 TEU EEE offer economies of scale but
molded as per the needs of the insured. along with it also increases the risks of loss or damage.
So, with the bigger boats and vessel being used,
Here are some factors which show marine insurance for cargo ships is becoming more vital these
insurance cover is really important: days.
1. Transporting Goods across the nations is much
5. Insure the goods in Transit for Single or Multiple
safer than before (But accidents do occur)
Journeys
Earlier transportation of goods used to be difficult as
lesser modes of transports were available. But now, with Marine insurance policies are available in different
a constant increase in the transportation business and structures. Based on how frequently one needs to
new sea routes being ascertained, transferring of raw transfer the goods, a structure can be selected
materials and finished goods within and outside the accordingly. These range from Annual Turnover Policy
(ATOP), Specific Voyage, Open Policy and Annual Policy.
nation has become quite convenient and safe. But, the
accidents and risks cannot be warded off completely. The
6. Marine Insurance covers cost of emergency
incidents of piracy of ships have increased in the recent
times. Also, nothing is guaranteed whatsoever that there storage
will be no accident of the carrier or theft of the goods. The needs for emergency storage might arise in case
there is emergency condition like extreme weather
2. Worldwide Coverage conditions, riots or some natural disaster such as floods
Certain insurance companies provide global marine that prevent the cargos to reach its final destination.
insurance for all types of marine risks. These policies aim The required expenses in such cases are also borne by
at protecting the single vessels for complex marine policies if special covers are taken for it.
multinational businesses. It is need of the hour for the
businesses which have subsidiaries in more than one 7. Coverage for goods discharged at a distress port
nation. Multinational businesses need a global policy to Goods discharge is often interrupted due to problems
ensure worldwide coverage for the to and fro of the like collapse of a part of a bridge to the port,
products. overturning of the truck that was carrying the goods
during night or any such accident. Marine insurance
3. A Marine Policy covers each and every type of offers covers the risk of such prevented goods discharge
goods transport:
Marine insurance policy is applicable to all kinds of goods
such as:
Y Packed or general Cargo: The packed cargo includes
break bulk (goods packed in boxes, crates, drums
and on pallets), neo bulk (lumber, paper, cars and
trucks) and unitized cargo (packed in big containers)
Y Unpacked or bulk cargo: Bulk cargo includes Liquid/
Wet Bulk (petroleum, gasoline, LNG [Liquefied
Natural Gas], liquid chemicals, Juice & Wine in
tankers) and Dry Bulk (coal, grain, iron ore, bauxite
& cement carried in bulk carrier.)

The Insurance Times, January 2018 39

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