Marine Insurance can be categorised into Marine Cargo Insurance and Marine Hull Insurance.
Marine Cargo Insurance:
What is Marine Cargo Insurance?
Marine Cargo Insurance offers protection for your goods against damage or loss during transit. Shipments can be via sea, air, courier or truck. Coverage can be provided for an all risks (ICC A) or named perils (ICC C) basis.
As mentioned, marine cargo insurance can also be arranged to cover goods in transit; goods that are moved on road conveyances such as lorry, vans or low loaders. Such transits can be within Singapore and/or between Singapore and West Malaysia.
Below is a brief overview of the insuring conditions for marine cargo cover:
|DESCRIPTION OF RISK||*ICC A||ICC B||ICC C|
|Fire or explosion||Yes||Yes||Yes|
|Stranding, grounding, capsize||Yes||Yes||Yes|
|Overturning or derailment||Yes||Yes||Yes|
|Collision or contact of vessel with external object||Yes||Yes||Yes|
|Discharge at port of distress||Yes||Yes||Yes|
|Earthquake, volcanic eruption or lightning||Yes||Yes||No|
|Entry of seal, lake, river water||Yes||Yes||No|
|Rain water damage||Yes||No||No|
|Total loss of any package lost/dropped overboard||Yes||Yes||No|
|General average and salvage charges||Yes||Yes||Yes|
|Theft pilferage and non-delivery||Yes||No||No|
|War/Strikes risk forwarding charges||Yes||No||No|
*ICC = Institute Cargo Clauses
Why do you need marine cargo insurance?
#1 – Cargo Theft has been rising
Cargo theft and piracy are major risk to cargos in international shipping.
#2 – Catastrophic Events
Earthquake, storms, explosions can cause containers to be lost/damaged.
#3 – Cargo Damage
Things can go wrong even with experienced cargo handlers, errors and omissions e.g. inadequate ventilation, wrong choice of container, condensation, etc
#4 – General Average
Following a shipowner’s declaration of general average, you may be required to post a bond and/or cash deposit to obtain release of your cargo even though they may not be lost or damage.
Under such circumstances, your cargo insurer will assume the responsibility and expedites the release of your cargo.
General Average is an internationally accepted principle where if certain types of accidents occur to the vessel, all parties share in the loss equally and this risk can be covered by marine cargo insurance.
#5 – Contractual Requirement
Shippers’ sales contracts (Incoterms) may obligate them to obtain ocean cargo insurance to protect the buyer’s or their bank’s interest. E.g. CIF, CIP, etc
#6 – Limited Liability of Carriers
The carriers’ liability in the event of a loss to the cargo is limited either by contract in the bill of lading or by law. In most cases, the cargo owner may only recover significantly lesser than the actual value of the goods being shipped.
Furthermore, the carrier may not be liable in certain instances where the damage is due to an act of God (weather related), or act of the shipper (improper packaging or loading).
#7 – Control over Policy Coverage
It may not be easy to ensure that the insurance taken up by another party is adequate to meet your needs. E.g sum insured, insuring terms, etc
And, if a claim arises, you may be dealing with a foreign insurance company, speaking a different language and can be time consuming.
Shippers who purchase cargo insurance themselves are usually better protected than shippers who allow other parties handling their importing or exporting transactions to arrange the cargo insurance.
Marine Hull Insurance:
Marine Hull Insurance protects you against liability for damage to other vessels if there is an accident at sea. This policy also insures your vessel against loss or damage to the hull and machinery.
Pleasure craft or Yacht insurance:
Pleasure Craft Insurance can help protect you against the physical loss or damage to your craft (personal use or for chartering purpose) including any liabilities to third-party property and injury to third parties, arising out of the use of your pleasure craft.
For a quotation or more information, please contact us at 6238 3616 or email firstname.lastname@example.org