We live in a world where people exchange goods and services with each other. India is known for its exclusive products such as spices, agricultural products, handicrafts, and many more. The export business is booming in India as the demand for these popular products has increased worldwide. However, the risk of damage or loss of goods during transit is also high.
When you export goods via the sea route, the risk involved is much higher than transporting goods over land. Any unpredictable event during the transit can cause significant damage to your goods and, therefore, to your business. That’s why it is advisable to protect your export business with, the Marine Insurance Policies. Here’s why:
Marine Insurance provides security against losses :
Once the goods you have exported are in transit in the ships, any unforeseen situation, such as a storm, robbery, piracy, or the ship sinking, can cause a major financial loss to your business. Without marine insurance, you will not get compensation for the goods that you lost during the unfortunate event.
So, you should invest in marine inland transit insurance to avoid such problems. It will give you compensation benefits while also lowering the risk of losses.
Also, many insured businesses ask for high levels of claims. They do so because of the parameters they might have chosen to estimate the financial loss. However, many reputable insurers in India use internationally accepted principles to evaluate financial loss.
Under Institute Cargo Clauses (ICC), ICC (A), ICC (B), and ICC (C), you need not worry about the loss estimation issues provided you choose the policy that fits your specific needs.
Marine Insurance Covering Legal Liabilities
Many countries, before accepting or sending goods, demand proper insurance coverage. Having marine insurance is a significant part of the export business for some of them. Authorities of many countries ask for proper insurance paperwork to complete the export procedures.
Not having appropriate insurance can have a significant effect on your business transactions.
It is advisable for you to purchase marine insurance to ensure the seamless processing of goods. You may need to present the marine export and import insurance policies to the insurers in order to get the compensation amount.
Add-on Coverages in Marine Insurance
Before buying any insurance policy, you must read the inclusions and exclusions that come with the plan. The premium you pay and the coverage you get are quite interrelated.
Marine insurance covers losses caused due to unfortunate events on the sea. What if, after deboarding from the ship, something happens to your goods? Per its terms, marine insurance may not cover any damage to your product from deboarding the vessel to the godown. In such a case, you should buy with inland transit coverage.
Inland transit insurance is a plan that covers any damage to your goods while being transported overland.
Make sure you buy marine insurance from insurers that offer add-ons to extend the coverage limit of the policy at the cost of a slightly higher premium. Get quotes from various marine inland transit insurance providers and make sure you choose the best one for your business.
Running an export business in India is tough. With a suitable marine insurance policy, you can rest assured that your insurer will be there for you to deal with the risk of damage or loss of goods in transit.
SecureNow can help you choose the most suitable marine inland transit insurance policy with the right coverage that matches your business needs. Connect with us now!
About The Author
Simran
MBA Insurance and Risk
With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.
