Marine Insurance

Marine Insurance can be further classified into

Marine Hull Insurance
Marine Cargo Insurance

Although Marine insurance is as old as Insurance itself it is still not a subject that everyone understands. Cargo insurance or transit insurance is the more familiar one.

The cargo during transit is exposed to various hazards and is regulated by the International Maritime Laws. Hence putting together an integrated simple insurance cover to take care of the damages to the cargo whilst it traverses distant lands would need professional handling. We at Heritage have access to the best of world practices through Associates with whom we have been working world over and can therefore bring in this expertise to discuss, negotiate and put in place innovative covers which can offer effective coverage at competitive prices and one which will be practically easy to handle.

WHO ARE ENTITLED TO MARINE INSURANCE:-

1)Individual Person (s). 2)Bank or Any Financial Institution; 3)Exporters / Importers / Traders;

The Insurance covers the loss or damage of the cargo, whilst the goods are being transported from one destination to another by rail, road, sea, air or by post. The cargo would be covered from the time the goods leave the warehouse at the place of despatch until it reaches the warehouse at the final destination point.

The widest cover is available under the “ALL RISKS” terms and if required even a basic cover such as loss by FIRE alone is available. The Policy is assignable and is an Agreed Value Policy.

There are different types of insurance policies available depending on the voyage/transit, values. Some of these are described below:

Transits within the country (Inland Transit)

Where only one transit is required to be covered – Specific Policy can be taken.
For regular transportation of consignments such as for businesses and Corporates an Open Policy can be availed of by estimating the value of such consignments in transit over this period of cover and premium paid in advance. This provides assured cover for all the insured transits.
Care should be taken to see that all the transits are declared to the insurance companies as stipulated and the SI is adequate to take care of such transits. If required the SI can be increased during the period of cover.
A Special Declaration Policy is also available where the Total value of consignments under transit is high (above Rs 2 crores) – and attractive discount in premium could be worked out.
Where the goods are expected to undergo multiple transits including intermediate storage and processing – a Multi Transit Policy is available.

Where goods are being Imported or Exported-

Specific Policy or Open Policy as above can be arranged.
In addition the Customs Duty can also be insured under a separate cover in conjunction with the basic transit cover.

Inland transit policies are commonly extended to cover perils of Strike riot and Civil commotion (SRCC) and Export/Import Policies for the perils of War and SRCC on payment of additional premium.

We can arrange for hassle-free cover most suitable to the client’s requirements.

Basically all types of ships – whether Ocean going or plying on inland waterways (Be they steamers, fishing vessels, trawlers, launches, etc) are covered under the Marine Hull insurance. Along with the Hull – the Machinery is also covered (H & M). Vessels being used for pleasure and sports – such as pleasure yachts can also come under this. Water borne properties such as Jetties, Floating dry docks, Pontoons all come under this broad section. Apart from this, other related shipping activities are also dealt with by the Insurers under this section. Covers for activities such as – Ship building/Ship breaking or ship repairers and the liabilities arising through such activities.
Also Charterers Liabilities, P & I Protection come under the Marine Hull section.

Perils covered-

The policy covers perils of the seas, rivers, lakes or other navigable water loss/damage to the property insured caused by:

Fire, explosion
Stranding, sinking, etc.
Overturning, derailment (of land conveyance)
Violent theft by persons outside the vessel
Collision
General average sacrifice, sacrifice, salvage charges
Jettisons
Piracy
Breakdown of or accident to nuclear installations or reactors
Contact with aircraft or similar objects or objects falling therefrom, land conveyance, dock or harbour equipment or installation
Earthquake, volcanic eruption or lightning
Crew negligence

Exclusions

Deliberate damage/destruction of the vessel by wrongful act of any person
Use of any weapon of war employing atomic/nuclear fission and or fusion
Radioactive Contamination, Chemical, Biochemical, Biological, Electromagnetic Weapons
Insolvency or financial default of the vessel owner/operators/charterers
War/civil war, Strike, Riot or Civil Commotion
Any terrorist or person/s acting with political motive

WHO ARE ENTITLED TO MARINE INSURANCE

Shipowners, charterers, shipbuilders, bankers, financiers of Ships or vessels who have Insurable Interest.

Ports – (Port Authorities, Port Operators, Private Jetty owners) can be covered by a comprehensive Port package Policy – which encompasses several risks such as Physical damage to the Vessels (H & M Cover) Business Interruptions, Wreck Removal, and TP Liability. Terrorism cover can also be given.

Very recently, the business has been brought out of the purview of the Indian Tariff and hence insurers are free to rate the risks on their own.

Marine Cargo

MARINE HULL COVER