What is marine insurance?
Marine insurance refers to the insurance of vessels like ships and boats. It also covers the cargo that is present in these boats and ships. It is very important that transporters who are using water as the mode of transport opt for marine insurance. This will ensure that they can claim for the damages that may be caused to the cargo and its carriers. In India “The Indian Maritime Insurance Act, 1963 “is applicable.What are the potential dangers to cargo and ships which makes marine insurance critical?
Everyone will agree that the sea is such a mode of transportation that the chances of damage are very high. Bad weather conditions and natural calamities like storms etc can damage the shipment. There are instances when ships have drowned along with the cargo due to rough weather. During cross border transportation by sea the chances of untoward incidents are higher. Possibility of invasion and attack by pirates or cross border shoot outs are a threat. These incidents can result in loss of high magnitude.What are the entities that marine insurance protects?
- Marine insurance will give protection to the owner of the ship and the owner of the cargo
- It will also protect the interest of the people who are interested in freight.
- It can also be useful in case any fines are imposed or if there are any liabilities.
What facets are covered by marine cargo insurance?
This is a means of providing insurance cover for any damage to the cargo or loss of the cargo during transit. It mainly covers export import shipments by ocean, inland vessels, trans shipments etc.Should one opt for marine insurance in case of small consignments?
The answer is simple. Yes, one must opt for the insurance irrespective of the size of the consignment. This aspect is very important if one wants to leave the worry of damage to others. It will also ensure that their business survives for long. Many people might want to avoid marine insurance as they may feel that it involves investing lots of money. But what they fail to understand is that in case of loss or damage of goods whom will they turn to for compensation? They must remember that no one is going to accept the liability. This will mean a complete loss. They must keep in mind that if this trend continues and the company keeps bearing such loses then their business will go down the drain very soon.All said and done marine insurance is a must. It is a means of covering your goods against damage and loss. Though it involves investment one must remember that it is worth the money spent. So, irrespective of the size of the cargo one must surely opt for it.
