If you are looking for a marine insurance policy, here are the steps that you need to take=

  1. Choose between Broker or Insurance Company = After choosing a suitable marine insurance policy, it is essential to decide to whom you should approach for the policy. As the world of corporate insurance is tricky, it is always good to take the help of corporate insurance advisors to ease your work. The broker, who possesses, specialised knowledge about various insurance policies would provide you all the important information to take out a marine insurance policy without delay. The broker would not only help in buying a marine insurance policy but would also help in case of claim settlement.
  1. Choose the Marine Insurance Company= There are various insurance companies in India, including both government and private, which are offering marine insurance Choosing the one insurer is essential.
  1. Fill Marine Declaration Form= Usually, a proposal form is required to be submitted to the marine insurance company to initiate the process. In case of marine insurance, you would have to submit a marine declaration or requisition form.

This form requires the proposer to submit all the details about the risk, like the items to be shipped, the name of the policyholder, value of goods, name of the carrying vessel, a place where the claim takes place, etc. If you are taking the help of insurance advisor, you can submit your form to him who would clearly review your form to ensure it is in order. After that, it would pass on the form to the marine insurance company. Here, you can note that your marine insurance coverage should include your cost of goods along with shipping expenses, plus, 10% or 15% added for anticipated profits.

  1. Assessment of Risks= Once the marine declaration form is received by the insurer, their officials would evaluate the risks. The risk insured must be present in the condition as stated in the declaration form. The officials after ascertaining the risk involved would decide the premium which would require being paid by the insurer along with the stamp fee.
  1. Payment of Premium= Once the insurer submits the declaration form, the proposer is asked to pay the insurance premium as fixed by the marine insurance company. Here, the premium that needs to be paid should be either in cash or cheque. You can adopt any other mode of payment as decided by the insurer.

Read more: How Does Indemnity Apply to Marine Insurance?

  1. Issuance of Cover Note= Once the premium is paid, the marine insurance company would issue a cover note, which would be subject to the condition as stated by the insurer in the policy document. The cover consists of details like name of the marine insurance company, sum insured, the name of the policyholder, name of the vessel, ports of destination and departure, premium rate, etc.
  1. Issuance of Marine Insurance Policy= Finally, the insurer would prepare and issue marine insurance policy which would have complete details about your policy. The same would be handed over to you.

Case

As K.M Engineering enjoys a wide clientele base, with clients situated across the world, the company bought a marine insurance policy last year. As the corporate insurance is a tricky area, the company availed the services of an insurance broker who suggested a right marine insurance policy as per their business requirements.

After that, K.M Engineering filed a marine declaration form with details, like the name of the policyholder, the port of destination, the name of the carrying vessel, etc. The company gave this form to its agent who later submitted it to the selected marine insurance company.

After receiving the marine declaration form, the insurer checked and evaluated risks. After ascertaining the risks, the insurer decided the rate of the premium be paid to the engineering company along with the stamp fee.

Read more: What is Warranty in Marine Insurance?

Once the marine insurance company accepted the proposal form, K.M Engineering paid an insurance premium as decided by the insurer in cheque. Once the payment received by the insurer, the engineering company issued a cover note which had information like name of the insurer & policyholder, sum insured, port of departure, etc.

Finally, the marine insurance company issued a marine insurance policy to K.M Engineering with complete details and stamps.