The Indian economy has secured a good rank in the world of export and import business. The organizations thus involved in these import activities will not only help India to strengthen ties with other countries but will also assist to move forward towards more socio-economic developments. As a matter of fact, to keep the flow on and make the business successful, insurances provide the much-needed backup.
Business and its Binges
One can carry out the export/import business by using a variety of products depending on the proper knowledge and capability of the businessman. Timber, tobacco, used cars, clothing, electronics, fuels, beauty products, agri-products, etc. can be exported and imported depending on the need of the country. Presently, online products are favourites for shipments.
However, all Indian ports are not that flexible regarding these transferences, which is quite an issue. Legal structure, administrations, and infrastructures do not help that much in the cause either. Poor internet connectivity, lack of speed, the lack of the fund for consignments, and the absence of tracking and surveying the exports/imports all lead up to difficulties in shipping small shipments.
Safeguarding Possibilities
Marine Insurance
It is concerned with shipments of various loads via marine activities. Though by marine, one understands sea, in the case of import-export business, damage suffered by the vehicles in any mode of transport including road, air, rail, and water are free to claim this insurance. Marine Insurance can be broadly divided into four categories depending on the insured things. These include Hull Insurance, Liability Insurance, Freight Insurance, and Cargo Insurance.
Type of Consignment Type of Insurance
The Marine Insurance for cargo and consignments i.e. the loads delivered using any transportation system are of varied types, and so are the policies. Depending on the damages suffered, the owner can seek various kinds of policies that cater to his/her needs the most and solve the issues:
- Time policy (for a certain span of time, preferably a year)
- Voyage Policy (for a specific voyage)
- Mixed Policy (combination of advantages of both voyage and time policies)
- Valued Policy (Pre-noted value of cargoes and consignments)
- Un-valued or open Policy (Values calculated after the accident)
- Wager Policy (invalid in courts; authority provides compensations if it feels so)
- Port Risk Policy (to provide protection in ports)
- Floating policy (Specific amount of claim; most popular of all kinds).
- The owner might opt for the one which goes well with his/her voyage style and business requirements.
Perils of marine insurance in export/import business
A slew of things and circumstances can tend companies or individuals to ask for marine insurance for their export and import business:
- Maintenance expenses of reconditioning, surveys and forwarding fees.
- Accidents such as derailment, collision, fire, explosions, spoilage and overturning.
- Artificial plunders like sea robbery, violence and theft/leakage.
- Natural calamities like- storms, lightning, earthquake, cyclone, tsunami, heavy rainfall, etc.
- Stranding or sinking of ships
Who qualifies for marine cargo insurance?
Till now, one of the misconceptions prevalent was that the owner of the vessel could ask for his/her due after a mishap. Just opposite to this, the Act of Marine Insurance 1906 prescribes that anyone whose interest is resting on the consignments can ask for insurance. It means a person/company, who is either benefitting or losing from the arrival of the cargo, can claim insurance accordingly.
Should You Bother with Marine Insurance?
Thus, whether you are sending a one-off consignment or sending a tinier package compared to your regular shipments, you can avail a suitable cover to safeguard the loss. Although, it may happen that the small shipment under consideration is not important enough, which is highly unlikely.
The real question would be, “How big will the claim be in the case of loss?”
The answer should lead you to your decision about covering this consignment with your existing marine policy or buying a separate cover for it.
A thumb rule can be anything less than your current annual premium should be left out of the claims.
However, this may differ for your business. So, better check with your insurer or your insurance advisor.
Every consignment is precious to the dealers and to the owner of the transporting vehicle because each one of them will earn a few bucks from this transfer. Therefore, it is wise to opt for Marine Insurance, especially Marine Cargo Insurance to ensure less suffering and damage.
Concisely, consignments can be big or small, but this should not provoke differences, as it will hamper the business. With multiple companies extending their assistance, SecureNow as an online insurance advisor offers 24×7 customer service to the clients and can provide quotes from multiple insurers for your needs with just a few clicks.
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.
