Marine insurance is an important requirement for the smooth functioning of businesses involved in the shipping of goods. This insurance reassures their customers about having cover against damage or loss due to various marine risks. In this article, we will get to know about important features of Marine / Specific Marine Insurance.
Marine insurance provides coverage for cargo losses, damaged ships, vessels, or any goods transporting vehicles and shipping containers. Despite all regular safety measures taken, marine losses can be heavy and can disrupt your business. In conclusion, one of the great features of marine insurance is that it allows businesses to customize the cover based on their requirement.
In specific marine insurance, businesses can avail cover for a specific transit only. Let’s know in detail about the features of a marine insurance policy.
Features and advantages of marine insurance
The right marine insurance policy with an adequate amount of coverage can protect your business from possible marine losses. Let’s take a look at the important marine insurance features and benefits of marine insurance:
Marine insurance comes in various types and can be customized based on the nature of the business and the business requirement.
In marine insurance of any type, either an open policy or a specific marine insurance policy, all-around coverage is offered. The marine insurance policy covers a wide range of named and unnamed marine perils.
Marine insurance policy offers stability to the business by providing financial protection in the event of unexpected loss or damage due to marine perils.
One of the main benefits of a marine insurance policy is that it provides wide coverage for all types of transport within the country and also across borders.
Perils covered by Specific Marine Insurance
The marine insurance policy covers a wide range of perils. Marine cargo insurance or specific marine insurance provides coverage for the perils mentioned below:
- Fire or explosion
- Overturning of the ship or land conveyance
- Washing overboard
- General average sacrifice salvage charges
- Total loss of package lost overboard or dropped while loading/unloading
- Earthquake, lightning, or volcanic eruption
- Discharge of cargo at the port of distress
- Theft and malicious acts
- Any other unnamed perils causing loss or damage to cargo
The coverage for loss or damage caused due to various perils is provided as per various Institute Cargo Clauses (ICC) – A, B, and C. However, Institute Cargo Clauses cover only goods in transit.
Institute Cargo Clauses (ICC)-A provides extensive coverage by covering various named and unnamed marine perils. However, Institute Cargo Clauses (ICC)–B is slightly restrictive as it is limited to specific perils. Institute Cargo Clauses (ICC)–C is the most restrictive as only certain specified perils are covered.
Exclusions under marine insurance
The benefits of marine insurance are extensive with a promise of comprehensive coverage. There are certain exclusions applicable to the marine insurance policy. Following are the general exclusions under a marine insurance policy:
- Losses or damage caused due to willful misconduct of the insured
- Losses caused due to delay
- Wear and tear, ordinary leakage, etc
- Inadequate and improper packaging
- War and nuclear perils
- Riots, strikes, and terrorism
However, losses from war, terrorism, and riots can be covered by paying an additional premium, depending on the chosen marine insurance policy’s terms and conditions. Therefore, understanding the features of marine insurance helps businesses to make the right choices.