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Essential Things To Know About Marine Cargo Insurance

​Our Earth has modernized with technology. It has made our world a safer and better place. However, there are still some sectors of the society that haven’t taken advantage of growing technology. And one of the sectors is transportation who haven’t taken any advantage of technology and are still risky. However, some changes in the transportation business have minimized the risk. Three pillars of reducing risk in the transportation sector are a reputable logistic service provider, suitable transport packaging, and at last but not least Marine cargo insurance. Goods are more prone to breakage during transportation. That’s why it is advisable to buy marine cargo insurance as the coverage provided by this insurance will help you financially in case loss or damage to your goods during transit. 

However, there are some essential things that you should know about marine cargo insurance. Let’s see: 

It Safeguards Your Goods Financially

Marine cargo insurance covers all the loss or damage caused to ships or any other transportation or cargo by which the goods have been shipped. This will financially help policyholders to cop-up with the expenses caused due to damage or loss of the goods. 

It Also Protects Goods Against Calamities

Natural calamities are not in our hands, marine cargo insurance​ takes care of the finances in case the damage caused to the cargo or goods is due to natural calamities such as Earthquakes, Tsunamis, Floods, etc. Not only this insurance protects you financially against the natural calamities but also protects your financially against man-made calamities such as fire, theft, etc. with certain exclusions.

It Comes With Various Categories

When you will go to buy marine cargo insurance, you will come across a wide range of categories such as hull insurance, cargo insurance, freight insurance, marine liability insurance. So, depending on your requirement, you can choose either one of them. You should consider the type of voyage and nature of goods while buying a marine cargo insurance policy in India. Other than the categories mentioned above, you will also get valued insurance, annual insurance, unvalued insurance, time voyage insurance, floating insurance policy, etc. You can choose any of the aforementioned insurances to cater to your needs.

Carriers Liability Applied

Marine cargo insurance is the best option when you are planning to transport a light but costly item safely. Due to transport conventions such as local laws, an international one, terms, and conditions of the contract, only a limited amount of the carrier’s liability is applied. The amount is calculated with the help of a formula that depends on the weight of the items to be delivered. This formula may vary depending on the applicable transport law in the region and mode of transport.

It Ensures Claim Settlement Without Any Hassles

Policyholders can settle marine cargo insurance claims without wasting much time. However, this smooth settlement only takes place when the cause of damage or loss is indefinite, or the claim is registered only for a significant amount and requires investigation. 

If you are planning to buy marine cargo insurance, the above mentioned essential things will help you to choose the best.