Business dynamics always have to deal with uncertainties, and the expansion of trade and commerce gives 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 business expansion.
Designed to offer coverage against various risks inherent in transit mode, the right marine insurance policy gives a 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-
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 marine 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 doesn’t specifically exclude, then the insurer covers it.
The marine insurer covers some of the common causes of losses, including natural calamities like lightning, rain, wind, etc.; and man-made perils like theft, fire, burglary, etc.
Usually, normal wear and tear are excluded from the marine insurance policy. Further, the number and type of exclusions vary from one insurer to another. So, advised making a systematic comparison among available marine insurance policies in order to avoid any nasty surprises later.
Claim settlement: Agreed Value Vs. Actual Cash Value
While comparing the physical damage coverage, pay attention to the fact of 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 are usually paid on the basis of the replacement cost after deducting the 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. Gives less coverage than the agreed value policy, and 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.
An agreed value insurance policy usually comes at a high price and gives wide coverage. The actual cash value insurance policy can suit the person who is looking for an economical alternative.
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 a marine insurance policy, you can choose the apt policy tenure. It can vary from the annual turnover policy and 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 that you have understood different factors which can help you in getting the right marine insurance policy, it is 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 requirement details, you can generate policy quotes by obtaining 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.
About The Author
Simran
MBA Insurance and Risk
With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.
