TYPES OF MARINE INSURANCE POLICIES

  The information provided here is part of Export Import Online Tutorial


 

TYPES OF MARINE INSURANCE POLICIES

 

 

TYPES OF MARINE INSURANCE POLICIES copyThis article explains: How many types of marine Insurance Policies are there? Different clauses of marine insurance policies, Scope of cargo insurance policy and how does marine Insurance policies work?

 

The shipper or insured covers the risks depending on the terms of letter of credit/ export order. The Institute of London Underwriters has drawn up the different clauses in marine insurance policy in respect of risk coverage. The risk coverage is done in terms of various institute cargo clauses. Different marine insurance policies with different risk coverage are :

 

Institute Cargo Clause A: This policy covers all the risks of loss or damage to goods. This is the widest cover.

 

Institute Cargo Clause B: This policy covers risks less than under clause ‘A’.

 

Institute Cargo Clause C: This policy covers lowest risks.

 

War and Strikes, Riots and Civil Commotion (SRCC) clause is excluded in all the above policies. These risks can be covered by specifically asking for, paying additional premium.

 

Also Read:       Commercial risks and solutions under Export Business   Political risks in International Trade   Risks arising out of foreign laws in Import Export Business    Cargo risks under Imports and Exports    Types of Policies to cover credit risks in Import Export Trade     Causes influencing price of export goods in Export Trade   Credit risks and solutions under International Business   Foreign exchange fluctuations risks and solutions in import export Business   How to overcome the credit risk in an export business?   Does exchange rate of currency effect export business?   Risks and solutions in Export Business

SCOPE OF CARGO INSURANCE POLICY

 

The scope of the insurance policy depends on the risks it covers. Here, risks are termed as perils. Perils are referred as causes of events. The various kinds of perils are:

 

Maritime Perils:

 

These are the events which are created by God or man made. Events created by God are earthquake, collision, storm, lightning, and entry of sea water into the vessel, volcanic eruption, rain water damage and washing overboard of cargo.

 

The man made events are fire, smoke, water used to extinguish fire, piracy, barratry (fraud, gross criminal negligence of the crew to prejudice ship owner)., sabotage, vandalism etc.

 

Extraneous Perils:

 

These are incidental perils. These perils are caused due to faults in loading, carrying and unloading. Examples are rough handling, leakage, breakage, pilferage and non-delivery etc.

 

3. War Perils: These perils relate to losses due to war including civil war, revolution, rebellion and detainment of the carrier etc. if the goods are confiscated by the customs on charges of smuggling, then insurance does not cover.

 

Strike Perils:

This means damage or loss due to lockouts, strikes, labor disturbances, riots, and civil commotion and by any terrorist acting from political motive.

 

Also read - KINDS OF LOSSES in Marine Insurance,   Terms Used in Marine Insurance,   RISKS NOT COVERED BY MARINE INSURANCE,     Types of Insurance Documents,   Procedure and Documentation for Filing Claim of Marine Insurance.  I hope, these article provide you a better knowlege about Marine Insurance under international business.

 

Did you like this article about various types of Marine Cargo Insurance Policies? Would you like to contribute your knowledge and thoughts about various types of marine insurance policies?

 

Write below your experience in handling various types of marine insurance policies.

 

Comments below on various type of marine insurance policies.



 


The above information is a part of Import Export Training online


 

TYPES OF MARINE INSURANCE POLICIES

 

RISKS NOT COVERED BY MARINE INSURANCE

 

Terms Used in Marine Insurance

 

KINDS OF LOSSES in Marine Insurance

 

Procedure and Documentation for Filing Claim of Marine Insurance.

 

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Comments


PRAVEEN KUMAR : Dear writer, I am really a fan of this website. I have been clearing many things from you. Hope you make it more helpful to understand the concepts of export and imports. Thanking you With regards, Praveen

SANDEEP MOTHKURI: Dear Sir/Madam This site is a wonderful one stop learning center especially for the begineers thank you very much .

kamaljeet singh: Thanks a lot for such a wonderful knowledge to provide insurance sector employees.... request you to pls clear about excess clause also...

Riya: Thanks a lotttttttttttttttttttttt for giving information in detail.

M R NAGARAJA RAO: Whether Bank's Hypothecation clause can be registered in Annual Marine Insurance Policy. If there are large number of banks, say 8 to 10,whether all bank name can appear in Marine Insurance Policy as Hypothecatee

shanti: Sir can u tell me why a bill of lading BL to be insured. It is issued by a forwarded or a liner agent. He is only an agent doing the act of carrying the goods FM a place to other. The shipper or buyer insure cargo. The ship owner insure ship,. The container owner insure the container. Them this BL is just an proof document. Why then this document need a separate insurance. Pls explain

AMEDEUSI : thanks for make me to understand i would like to read more in order to get more knowledge about this concept of marine insurance

AMEDEUSI: holow sir can u tell me why insurance is required when we purchase car from abroad this is required when shipping from one side to other example from japan to tanzania

Hassan: Why additional clauses of marine insurance are attach with the policy , which generally excluded from original policy under marine insurance Act 1906 .

fatinamirah: What is the connection between General Average and cargo maritime insurance?

chris ncube: I am importing new passenger tyres from China to south Africa,I am requesting advice about choosing a right marine insurance

Kalyan Paul: Sir, I'm trying to import some agricultural equipment (rice cutter) from china to kolkata,after a long search I have found this site, it very useful for people like us,only if we can understand the terminology, but for me its seems like a rocket science, kindly help with where should i go apart from the importer for proper documentation.Also kindly tell us the exemption part for importing the agricultural machinery

selva: Thanks a lot for giving information in detail

Manthilaka: Hello I learned lot of from this site as candidate of exam of insurance thanks

Manthilaka: Dear sir very interesting site to who are entertain with international trade thanks lot

Sujeet Singh: Thanks for such amazing explanation and site !

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