The Basics Of Marine Insurance
There is an inherent need today to ensure that every facet of your life, right from general insurance, life insurance as well as goods and services, are insured. If you do not pay heed to this, you may end up with serious debt and straddled with long, drawn out payment hurdles. This is extremely imperative while shipping prized cargo across countries or continents. Marine insurance covers the risk of goods from the point of departure until the cargo reaches its destination, and this is where the policy ends.
Time Policy insures the ship for a fixed timeframe. It is possible to extend the duration for a longer period. Another feather in the cap is the mixed policy hull insurance transit coverage. The ship is assured of a cover for a mixed and timely duration â ideal for ships operating on a particular route. To ensure that there is no serious damage to the cargo or passengers, it is a necessity for the owner of the vessel to keep the policy up-to-date.
Transit insurance offers coverage for cargo and hull insurance. Both are imperative to a ship owner as well as the exporter. This ensures that all the goods are covered while in transit, from the point of origin to the destination point. In the past, the concept of inland marine insurance was established so that goods were insured while traveling at sea. Thankfully, it encompasses a wider range today.
There are different types of marine insurance policies under this umbrella. The sailing vessels policy takes care of the vessel in case of collision, burning or sinking at sea. An annual insurance policy provides an assurance cover of goods that belong to a specific assured party. The insured amount is calculated based on the value of the goods. It is essential from every aspect, from the time the ship leaves with the shipment, to the time it docks to ensure that every facet is taken into account.
Floating policies are an ideal form of transit insurance taken for a large amount for gargantuan trade. To send off the shipment, a declaration is a necessity. The open cover contract is an agreement created between the assured party and the insurer. The scope falls under the honor bound scheme where separate policies are not a necessity for every shipment. As an open cover policy, it works rather well for regular cargo shipments once the declarations are made.