Buyers can take this policy, as well as, sellers, import/export merchants, contractors, banks—or anyone engaged in the import and export of goods or transportation of it within the country. However, there are different types of policies, included in this policy like hull insurance which is beneficial for ship owners. Cargo insurance is advantageous to the business organizations to which the goods are being transferred. The contract of sale would decide who can buy the marine insurance 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.
Additional Read: Explain Sales Turnover Policy and its advantages
Case on Marine Insurance Eligibility – Who can buy the policy?
As M.N. Automobile exports automobile parts to different parts of the world, also, the company can buy the policy to insure the consignment against various perils like floods, fire, earthquakes, etc.
Similarly, S.N. Printing Press imports printing ink from a neighbouring 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.
SecureNow is a technology-focused insurance broker that provides a complete risk assessment and lets the customer view and compares multiple quotes from different insurers, thus helping them get the best benefits out of the policy.