The Marine Insurance policy can be taken by buyers, sellers, import/export merchants, contractors, banks—or anyone engaged in the import and export of goods or transportation of it within the country. There are different types of policies that are included in this policy like the marine hull insurance which is beneficial for ship owners. Cargo insurance is advantageous to the business organizations of which the goods are being transferred.
The contract of sales would decide who can purchase the policy. Here are some of the most common contracts:
- FOB (Free on Board)
- C&F (Cost & Freight)
- CIF (Cost, Insurance & Freight)
In FOB and C&F contracts, the buyer is responsible for insurance. However, in CIF contracts, the seller is responsible for insurance.
Click here to know what are the factors that decide premium of Marine Insurance policies
Case on Marine Insurance Eligibility
As M.N. Automobile exports automobile parts in different parts of the world, the company can buy a marine insurance that secures the consignment of the company against various perils like flood, fire, earthquake, etc.
Similarly, S.N. Printing Press imports printing ink from a neighboring nation. The consignment is transit via sea, and the company has bought a marine insurance policy to secure the consignment against any loss or damage during transportation.
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