A Quick Guide for Getting the Right Marine Insurance Policy

Business dynamics always have to deal with uncertainties, and the expansion of trade and commerce give rise to various risks which are associated with the transportation of goods. Therefore, it is crucial to have a viable risk management practice in place if the company is eyeing for the business expansion.

Designed to offer coverage against various risks inherent in transit mode, the marine insurance policy gives shield against physical loss or damage to cargo that is under movement via any of the transport modes, i.e., air, rail, sea or a combination of any of these modes, between two points.

Read More: 7 reasons you need marine insurance for your next journey

While it is necessary to have a marine insurance policy, it is equally important to ensure that you buy the right policy. Here are some of the factors which can help you in getting the right marine insurance policy in India-

  1. Types of losses and damages covered

Usually, physical damage coverage pays for those repairs which happen due to damage caused by one of the insured perils. However, you should go with the ‘best’ policy that promises to offer you ‘all risk’ coverage, which says that if the loss or damage is not specifically excluded, then it will be covered by the insurer.

Some of the common causes of losses which are covered by the marine insurer include natural calamities like lightning, rain, wind, etc.; and man-made perils like theft, fire, burglary, etc.

Usually, normal wear and tear is excluded from the marine insurance policy. Further, the number and type of exclusions vary from one insurer to the another, so it is advised to make a systematic comparison among available marine insurance policies in order to avoid any nasty surprises later.

  1. Claim settlement: Agreed Value Vs. Actual Cash Value

While comparing the physical damage coverage, pay attention towards the fact that whether the coverage is based upon agreed value or actual cash. In the case of the agreed value insurance policy, the insurer pays the amount mentioned in the policy document if there is a total loss.

In such type of insurance policy, the losses or damages resulting from a partial loss is usually paid on the basis of the replacement cost after deducting deductible, which is the amount that a policyholder has to pay from his pocket.

Read More: 7 Reasons to Buy a Marine Insurance Policy if You are a Shipper

Though in the case of the actual cash value insurance policy, less coverage is given than the agreed value policy, it is available at a lower cost. This type of marine insurance policy offers coverage only up to the current market value of the vessel at the time of total loss, after factoring in depreciation.

As agreed value insurance policy usually comes at a high price and gives wide coverage, the actual cash value insurance policy can suit to the person who is looking for an economical alternative.

  1. Tenure of the policy

If your business involves frequent transportation of goods, make sure your marine insurance is in sync with it. Based on how frequently you require marine insurance policy, you can choose the apt policy tenure. It can vary from the annual turnover policy, annual policy to specific voyage policy and open policy. You can go with the annual or sales turnover insurance policy which promises to cover your entire year’s insurance requirements under one policy.

Seek out marine insurance experts

Now when you have understood different factors which can help you in getting the right marine insurance policy, it is the time to buy the one. As a marine insurance policy is playing such an essential role, it is necessary to choose the right policy. Therefore, it makes complete sense to go with SecureNow, which is a reputed corporate insurance advisor.

By entering a few basic details about your requirements, you can generate policy quotes obtained from different marine insurance companies which you can compare to find the right policy. Experts of SecureNow are at your disposal not only at the time you apply for a marine insurance policy but also in the unfortunate event when you have to make a claim.

SecureNow has the expertise and skills to help you at every step!

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