With globalization, the entire world is one huge market and waterways are essential in facilitating international trade. The sea has been a primary mode of transportation for ages and even today it continues to be so. But despite all these years, the risks involved in water transport exist even today. These risks are not just due to natural calamities, but also the accidents that may occur at ports. So, it is best to avail marine insurance cover.
About marine insurance
It is a commercial insurance plan that is offered to ship owners, shipping companies, and even businesses that transport their goods through them. Unexpected changes in weather conditions, pirates, navigation issues, and cargo handling issues can damage the consignment and the ship. That’s when a marine insurance
policy helps safeguard against these losses.
What is marine hull insurance?
There are different forms of marine insurance plans, and one that specifically aims to protect the vessel carrying the cargo is marine hull insurance. It is a safety net designed specifically for ship owners and shipping companies that own a fleet of these vessels. The hull is the primary supporting part of the ship. Damage to the hull compromises the safety of the ship, and hence, an insurance cover is critical.
Not just the hull, but also the machinery installed on the ship for loading and unloading the cargo can get damaged. With a marine hull insurance cover, ship owners can avoid financial losses for the damage to such machinery.
What is covered in marine hull insurance plans?
The following risks are included as a part of marine hull insurance plans:
*Standard T&C Apply
- The damage to the ship or vessel, along with any installed machinery or equipment on it.
- Loss or damage to the ship due to theft and fires.
- Damages to the ship due to natural calamities like lightning, typhoons, etc.
- Third-party liability incurred due to the damage to other ships and vessels.
- Any unexpected damages to the vessel during a maintenance activity
- Coverage across the world for vessels that travel across oceans.
Who must consider buying marine hull insurance plans?
Marine hull insurance plans are general insurance
policies designed keeping in mind the port authorities, the ship owners, and even private and public port operators. It helps avoid unexpected financial losses.
What are the advantages of buying a marine hull cover?
The first and foremost advantage is the provision of a safety cushion for unanticipated financial losses. With marine hull insurance, your finances are leak-proof in situations of untoward accidents.
Next, marine insurance plans can be customized using the add-on facility to exactly suit your requirements. These add-ons generally include protection against terrorism, wars, and similar situations. With such a marine cover by your side, you need not worry about any financial setback to your business.
Does marine hull insurance exclude anything from its coverage?
Like other insurance policies, marine insurance plans are limited in their scope. The policy document lays out what is covered by the policy, and similarly, what is specifically excluded. Here are some examples of its exclusions:
- Routine wear and tear of the hull and its machinery.
- Damages due to nuclear activities.
- Contamination due to radioactive elements.
- Any intentional damages to the vessel.
- Damages due to overloading of goods.
Read more on what is marine insurance
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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