Marine Insurance

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In this article, we will learn about what is not covered under marine insurance. Marine Insurance doesn’t offer any coverage in the following cases:

  • Loss or damage due to the willful act of negligence and misconduct
  • Any loss or damage due to delay
  • Loss or damage due to improper packing
  • Financial default or insolvency of owners, charterers, managers, or operators of the vessel
  • Loss or damage due to wire, strike, riot, and civil commotion
  • Loss or damage arising from the use of nuclear fission, weapon, or any other radioactive force
  • 1/4th of collision damage
  • Removal of wreck
  • Contamination due to radioactive rays
  • Attack or damage from biological, biochemical, chemical, or electromagnetic weapons

Additional Read: What is covered under Marine Cargo Insurance?

 Case on Marine Insurance Exclusions

In 2015, Excel Electronics got a big contract to export 500 electronic items, including LED, mobile, and washing machines, to the Eastern nation. Before dispatching, the packaging team scrutinized the same and released consignment only after getting the green signal from the team.

It took seven days for the consignment to reach its destination. However, at the time of unloading, the buyer found the wet consignment. It was due to the negligence of the packaging team, which caused damage to the consignment in a substantial part due to water.

The buyer filed the case against the seller and asked for compensation. On the other hand, the seller had marine insurance and approached the insurer for the claim settlement. However, if caused damage due to improper packing insurer rejects the claim. As a result, Excel Electronics incurred all the losses on its own.

In a similar case, G.S Automobile sent a consignment of automobile tools to a neighbouring nation. However, if damaged at the time of unloading, 1/4th of the consignment. Though G.S Automobile had marine insurance policy; the insurer refused to offer the cover as the damage fell under the exclusion.

Additional Read: 4 general exclusions in Marine Export and Import Policy