Marine cargo insurance

What is marine cargo insurance

This type of insurance covers the losses or damages to the goods during transportation from one place to another through known means of transportation, and these losses are covered according to the insurance policy and the conditions set in it, and marine insurance can be divided into two parts as follows:

First, general marine insurance: It is these documents that work to insure ships on their sea voyages against risks that they may be exposed to at sea, such as storms, sailors running aground, piracy or explosion, and the insurance company bears all those risks that have been clarified in the terms of the insurance policy.

Second, cargo and transportation insurance: In this section, insurance policies are issued for goods that are loaded or transported from one place to another, and the insurance company bears all the risks that the goods may be exposed to within the terms of the insurance policy, such as the inherent knowledge of the goods, its type and its owner.

Marine hazards

Marine hazards in general are those dangers that are carried out for marine pieces such as ships during their maritime itineraries, which exposes them and their crew and the goods they carry to a real danger during the maritime transportation process, and for each hazard to be classified by the description of the Marine Hazard, the following must be provided:

1.     Those dangers that relate to marine parts such as ships and the damage related to them or the goods on them.

2.     Those risks that are carried out during the course of the maritime transport process, and this removes responsibility for those risks that are carried out before or after the transport process.

3.     Those dangers that occur while insured persons are not at sea .

Marine hazards in general have a number of images, including :

·         The fire.

·         Dangers of the sea.

·         Piracy and theft.

·         Deliberate throwing of objects into the sea to save the ship and what is on it.

·         Betrayal of the captain or crew members of the ship.

·         Nuclear dangers and wars.

All marine hazards are covered according to the insurance policy on two broad scales, which we mention :

The first domain:  Cover all marine hazards that have already occurred during the insurance period and follow all the conditions described in the insurance policy.

The second domain: Where these non-maritime hazards are observed but are subject to the insurance conditions, such as the ship being exposed to a risk as a result of stopping at a port, this is also covered by the insurance coverage.

Types of marine insurance policies :

Marine insurance policies can be divided according to the insurance topics into four main sections: 

·         Marine parts insurance policies: It is a type of insurance and consists in identifying Marine pieces in their various forms, represented by (Passenger ships-coastal service ships-cargo and transport ships – yachts and cruise liners – boats) This is in order to issue insurance policies that meet all the detailed data about what is intended to be insured.

·         Shipping and transportation parts insurance policies: This type includes marine parts and marine movable items, and falls under this type of insurance policy (Single cargo insurance policies-common cargo insurance policies – open cargo insurance policies).

·         Shipping parts wages insurance policies: This type of insurance policy works to cover the risks related to the fare of marine parts, either through the loss of them or the loss of profits or even the currencies expected to be obtained against the sale of those cargoes, as through the insurance policy appendix, those risks are insured under the policy.

·         Marine liability insurance policies: Where this type of insurance policy is issued to cover all losses incurred as a result of the operation of the Marine piece based on the determination of maritime liability in that either the owner of the ship or the one who operates it, under the annex to the insurance policy and what is provided for.

Steps of contracting marine insurance

Marine insurance policies go through a set of basic steps that must be available in the documents, including:

First, complete the insurance application data: Marine insurance has a special nature distinct from other types of insurance, because it basically depends on the method of trade and foreign operations, this requires simplifying the insurance procedures to some extent, and this is done by completing the insurance form prepared by the insurance company either in attendance or by telephone conversation or by postal letter.

Second, the temporary statement of insurance coverage: After the insurance application data is completed, the review process begins on it until the insurance policy is issued and it may take some time until it is extracted, the insurance company extracts a temporary document for the insurance coverage notice to be delivered to the insured and this is in order to provide full insurance protection until the basic insurance policy is issued.

Third, extract the insurance policy: At the last stage of contracting in marine insurance is the extraction of the insurance policy, which is the basic criteria and the binding contract between the insurance company and the insured.

The most important data to be available in marine insurance policies :

·         History of the insurance contract.

·         Name of the insured and insured.

·         Subject of insurance and its specifications.

·         Ship name.

·         Year of construction of the ship.

·         Nationality of the ship.

·         The amount of insurance.

·         The value of the object subject to insurance.

·         Charging port and discharging port.

·         Insurance premium.

·         Risks covered by the marine insurance policy.

·         Risks excluded from the document.

·         Additional dangers.

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