The world has become smaller, with globalization leading to an increase in the export and import businesses. The growth of export and import business in India has led it to become the 17th largest export economy in the world. There are products and services which get exclusively exported from India to the rest of the world and vice versa.
Particularly to the businesses related to the transportation industry, it is crucial to buy marine insurance. Prevention is better than cure. Nowadays, there are numerous insurance policies available. If you deal with export or import services, you must understand the different components of a marine insurance policy.
Marine insurance acts as a protective cover against loss or damage caused to cargo as well as the vessel. It is beneficial considering the mode of transport is water where natural occurrences can take place harming the products and the ship. Two of the sub-categorized insurance policies which are commonly known are marine hull insurance and cargo insurance.
Being a part of the export and import industry, you must understand the differences between the two and how they benefit you.
Marine Hull Insurance
Marine hull insurance is a policy that provides coverage to all watercraft vehicles such as boats, ships, fishing boats and others. The term ‘Hull’ is associated with the body of the vessel. The policy helps cover ship damage expenses. The right choice of a marine hull insurance plan ensures protection and is beneficial in many ways:
- Safety For All Types Of Vehicles
The marine hull insurance scheme insures all water faring vessels such as ocean-going vessels, coastal and inland vessels, port craft and sailing vessels. It also provides coverage against damage for yachts and cruise liners.
- Risk Coverage
With so many added risks during voyages such as fire, burglary and theft, marine hull insurance provides cover for all the damages as per the terms of the chosen plan. The policy also insures the vessel during its journey from one port to the other.
- Financial Security
The added benefit of the marine hull insurance is that it insures against any financial loss. If your vessel gets damaged during the journey or the installation of any equipment at the dock, the scheme pays for labour wages, legal expenditure and maintenance cover.
Marine Cargo Insurance
Under this insurance, goods are insured against damages during transportation. This insurance scheme covers losses from weather contingency, sinking of the vessel, theft and others. The benefits of marine cargo insurance are:
- Coverage against damages due to inappropriate packing, invasion, cargo desertion and others.
The general coverage clause covers partial damage that occurred to the shipment. This factor ensures protection against losses for the cargo owner.
- The marine cargo insurance also ensures safe transportation of your shipment from one warehouse to the other.
Therefore, with growing businesses in the export and import industry, it is imperative to get insured for financial security. You may even find some insurance plans that have the benefits of both marine hull insurance and cargo insurance included in one policy. It is vital to understand how to choose the policy before buying one. Choose from amongst a variety of plans depending upon your business needs and requirements.
You can buy marine hull insurance via insurance broking firms like SecureNow that help you in making the right choice according to your business. They provide you with all the assistance in choosing the insurance plan best suited for you. They also help you navigate through all the pros and cons of marine insurance policies. With the right guidance and choice of insurance plan, the risks of loss and damage of goods in transit can be minimized.