Types of Marine Insurance
Hull Insurance – This insurance covers for both vessel and its apparatus such as fuel, tools, furniture, machinery etc.
Freight Insurance - This insurance usually covers for the loss of freight. If the goods are safely shifted to the destination port, the owner of goods will have to pay the freight charges but if the ship faces any damages and losses, the shipping company will be under loss. Hence this insurance becomes a necessity to the owner company.
Cargo Insurance- This insurance covers the personal goods of the passengers and crew of the ship. It also covers the goods that are transported.
Liability Insurance – This is the insurance which is utilized when the insured suffers losses due to liability to third party. This liability may be caused due to risks such as collision of ships or any other similar causality that may take place in voyage.
Types of Marine Insurance Policies
Time Policy- This policy is taken for a time period of usually one year.
Voyage Policy – This policy coverage is given only for a particular voyage say from starting point to the destination.
Mixed Policy – As the name suggests it is a mixture of both voyage and time policy.
Valued Policy – In this case, an additional fixed value is mentioned in the policy itself along with the value of goods. For example, along with goods the charges can also be added such as freight charges and shipment charges.
Unvalued Policy - Here no additional charges are mentioned. It is decided after the incident after proving it.
Floating Policy–This policy is beneficial to exporter who provides regular supply of goods. This policy is taken for large sum of money for numerous shipments.
Other Important Pointers:
- Marine insurance is available in all general insurance companies.
- The insurance amount may vary from one company to another.
- It is important that the insured makes a note of the coverage made by the insurance companies as few companies may not cover all the losses of the shipment.
- With the increasing attacks by pirates and natural calamities, it is important to have a marine insurance that takes care of the risks aboard.