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What are the Types of Marine Cargo Insurance?

Marine insurance is a wide subject that can be categorized into different types of policies and marine cargo insurance is one of them. Read onto know more.

Marine insurance is a wide term which can be divided into varied policies. Depending upon the needs, and specifications of the transporter, appropriate policy is designed and provided to the seeker.  

In order to make sure that risk can be managed without lack or monetary funds, different maritime insurances are made necessary for ships as well as the ship owners. Nowadays, a wide array of insurance policies is available for the benefit of the client. Considering the nature and scope of the client’s business, he can choose the best marine plans and reap huge benefits out of it. 

There are a large number of companies offering online marine cargo insurance for owners. Some types of insurance are discussed below:

Protection and Indemnity Insurance

The particular type of insurance is facilitated by the P&I club. It is the shipowners’ mutual insurance covering the liabilities to the third party and risks which are not covered other than this in standard H & M and other policies. 

Protection: It covers all the risks related to ownership of the vessel like crew related claims.

Indemnity: It bears the risks which relate to hiring the ship including cargo related claims.

Marine Cargo Insurance

The concerned type of insurance covers the risks related to marine cargo carried by ship and pertains to the belongings of a ship voyages. The policy provides protection to the cargo owner in case of loss of cargo because of ship accident or due to delay in the voyage or unloading. 

The particular kind of insurance has third-party liability covering damage to the port, ship or other transport forms (rail or truck) which may be caused due to cargo carried by them. 

As far as the time-limit for such claims is concerned, it may differ depending upon the content of policy and action is to be brought within that period from the date when damage occurs. 
In the case of newly built ships, the shipowner is under contract with the shipyard to take out insurance cover for a period of usually one year from the date of yard delivery. 

There are different types of policies offered to the clients by insurance companies so as to facilitate clients with flexibility while choosing a particular plan. With thorough research on marine insurance policies available, you can get the best deal for ship and cargo. 

Floating policy

It’s a policy where only the claim amount is specified and other details are omitted till the ship takes off for the journey. The policy is mainly suitable for those who undertake frequent trips of cargo transportation through waters. 

Before you plan to buy marine cargo insurance, it’s an area that considers thought, straightforward and complex dealings to get common ground of payment and receiving. When it comes to the complex fields, one must choose policies that facilitate easy transactions. To cater to the interest of clients and insurance providers, it’s a wise decision to have the appropriate marine insurance policy among all considering your needs and specifications for the long run.