• What is Cargo Insurance?
Marine Cargo Insurance covers against physical loss or damage to cargo during transit by vessel, road, rail, aircraft, post, or by any other conveyance. Cargo insurance protects those who have an insurable/financial interest in the cargo (buyer or seller and intermediaries, if so structured). Cargo insurance coverage ranges from All Risks to Named Perils, with common extensions as well as customized wordings.
• My transit carrier provides insurance, why do I need to buy cargo insurance?
Your own cargo insurance policy ensures sufficient limits of liability, known coverage conditions and consolidated claims handling. Additionally, your own cargo insurance policy will be a less expensive alternative to transit carrier provided insurance solutions.
• What is the difference between inland transit insurance and ocean cargo insurance?
Inland transit insurance covers transits vide land conveyances. Ocean cargo insurance provides coverage for international ocean and/or air shipments on a warehouse to warehouse basis.
• What does Warehouse to Warehouse mean?
Cargo insurance coverage is often referred to as warehouse to warehouse. However it is important to note that the coverage may be more accurately determined by the terms of sale used in each transaction (e.g. CIF/CFR/FOB/EXWORKS, etc.). The cover attaches from the time the goods leave the warehouse or place of storage for the commencement of transit continuous during ordinary course of transit and terminates either consignees’ final warehouse or place of storage.
• Why should one take Transit Insurance for Imports/ Exports even though the goods are least prone to getting damaged and there is no chance of shortage?
Wherever the movement of goods is out of home country through a ship, a plane or any other carrier an unfortunate catastrophic event can result in total / partial loss of your goods, hence it is advisable to take an insurance policy.
• Will the carrier pay transit losses for goods they carry?
Carriers are not obligated to pay for the full losses that occur beyond their control though they entrust in safe delivery of cargo. They will / may charge additional cost from the owner on account of providing limited / fixed liability in the event of loss to goods they are carrying.
• What is the deductible/excess in the policy?
It is the amount or percentage of the claim as specified in your policy that has to borne by the insured for each claim made under the policy
• What is Marine Cargo Open Cover?
Open cover is provided to insured having substantial international trade import / export. Once terms and conditions of the cover are finalized, the insured pays premium in advance and the insurance company issues specific stamped policies / certificates of insurance against each declaration provided by the insured.
The main advantages of this policy are that the agreed terms & conditions are automatically applicable to each and every consignment.
• I’ve shipped hundreds of times and never had a loss. Why would I want to purchase cargo insurance?
That is a wonderful position to be in, but the more you ship, the more the law of averages works against you. Current risk management estimates calculate that nearly 30 percent of losses are unavoidable. Having the right cargo insurance policy manages that risk in the most cost effective way. If you ship by ocean, then you also need to consider that you can bear the cost of someone else’s loss through “General Average”, where all parties transporting by ship bear the loss of one or more parties.
• What is the difference between a boat policy and a yacht policy?
Generally, the distinction between a boat policy and a yacht policy is determined by the size of the boat. Boat policies cover boats less than 26 feet long, and yacht policies cover boats 27 feet long or more. Exceptions may apply.
• How will the damage to my boat be calculated?
If you have a yacht policy, damage is calculated on a replacement cost basis, with the exception of certain items specified in your policy. For a boat policy, damage is calculated on an actual cash value basis, with appropriate depreciation applied to the items being repaired.
• What happens if my boat can’t be repaired?
If the vessel is beyond repair, it is considered as total loss. The insured is entitled to receive the replacement cost for your boat, up to sum insured subject to terms and conditions of the policy issued.
• What is covered under Aviation policy?
Aviation insurance is a policy that offers property and liability coverage for aircraft. It covers losses resulting from aviation risks that come about due to the maintenance and use of aircraft, property damage, loss of cargo, injury to people or liabilities to the third parties.
• I just made major upgrades to my aircraft and I want to increase my hull value; what do I need to do?
It is possible to increase value of the aircraft due to upgrade; in such case it is subject to availability of supporting documents to support the value increase.
• How much liability coverage is enough?
There is no simple way to determine this. It is generally best to by as much as you can reasonably afford. You should take into account what assets you have that need to be protected. While registering an aircraft to a holding company may provide some benefit, if the claim is bad enough it may come back to you individually. Consider also what your passenger exposure is. How many people will be flying with you on average? What is the worst case scenario?
• What are the factors determine the Marine insurance premium?
The premium is estimated on the basis of the various risk factors associated with the subject matter insured. Such as nature of the interest, Sum insured, inherent risk the products may possess, limit of liability, market conditions, loss ratio, any political risk, strike, riots, and civil commotion that could hamper the delivery of goods etc.
*Note: please refer back to the terms and conditions of your chosen policy, exclusions and limitations may apply depending on the insurance plan.
