Marine Insurance

Marine Insurance covers damage or loss of cargo, ships, vessels, terminals and any transport which used to ship goods from point to another. SInce provides protection against transport related losses and damages, shipping companies are heavily dependent on Marine Insurance to safeguard their goods and businesses, especially those transported through water.

Damages due to hazards, storms, pirates, border conflicts all lead to losses to shipping companies and that is why Marine Insurance is so significant to save these shipping companies from bankruptcy.

Need for Marine Insurance

Maritime Insurance has been made mandatory for ships and their owners to ensure adequate measures are taken to cover any unforeseen risk which may lead to loss of valuable property or lives.

Marine Insurance is necessary to

  1. Protect Companies from cargo theft
  2. Container loss at sea
  3. Loss due to natural events
  4. Cargo loss/damage
  5. Other causes beyond our control

Industries Serviced


Construction

Manufacturing

Real Estate

Transport & Logistics

Hospitality

Public Entities

Agricutlure

Energy

Marine Insurance


Marine Import & Export (Cargo) Insurance

Marine Inland Transit Insurance

Marine Hull Insurance

Marine Specific Transit Insurance

Types of Insurance




Marine Cargo Insurance

  1. Clause A – Cover against unnamed perils
  2. Clause B
    1. Washing overboard (accidently losing the cargo over the side as contrasted with doing it deliberately)
    2. Entry of sea, lake or river water to the vessel or place of storage, however, note that this peril does not cover rainwater, sprinkler water or condensation type damage
    3. Total loss of a package by falling overboard
  3. Clause C
    1. Fire and explosion
    2. Grounding or stranding of the vessel
    3. Jettison of the cargo (disposing of the cargo over the side of the ship deliberately)
    4. Sinking
    5. Collision
    6. Damage to the cargo if it must be discharged after damage to the ship

What it does not cover

  1. Wilful misconduct of the insured – deliberately causing damage to the cargo
  2. Wear and tear or inherent vice – the natural behaviour of cargo without any external influence (such as cargo ripening or ferrous metals rusting)
  3. Insufficiency of packing – this is a relative concept as the measure is the appropriate packing for that cargo, not a standard across all cargos
  4. Insolvency of the carrier – this is to try and focus cargo interests minds on the quality of those with whom they do business
  5. Delay – even if the delay is caused by a peril insured against. This is because insurers are not interested in covering loss of market
  6. Unseaworthiness – particularly if the insured was aware or should have been aware at the time of loading. The concept of unseaworthiness is not just a ship with holes in her hull but also incompetent crew, or missing radios.
  7. Unfitness of a container or other conveyance (truck etc) to carry the cargo
  8. Malicious damage – this is only in the ICC B and C Clauses
  9. War – piracy is not included in this exclusion
  10. Nuclear Strikes

For registration of claims and to learn more about our claims process please Contact our dedicated claims team for advice on an incident/claim.

Freight, Demurrage & Défense Insurance (FD&D Cover)

The FD&D Insurance policy Covers the costs arising from disputes relating to operation of ships, but not the damage itself.
What it covers?

  1. Charter parties
  2. Contracts of Carriage
  3. Bills of Lading
  4. Contracts of Affreightment
  5. Vessel building contracts
  6. Vessel sale and purchase contracts
  7. Vessel repair contracts
  8. Vessel agency, stevedoring, towage, and salvage contracts
  9. Insurance broking, ship broking and management service contracts
  10. Bunker and necessaries contracts
  11. Crew contracts
  12. Marine insurance contracts

What it does not cover?

  1. Claims in respect of which the Assured is or could have been covered by any other insurance contract, e.g. P&I Insurance

Marine Liability Insurance

What it covers?

  1. Loss of, or, damage to any other vessel or property caused by insured vessel
  2. Death, personal injury, or illness to the third party
  3. Loss of, or, damage to any vessel or craft in your care, custody, or control
  4. Tenant’s liability
  5. Premises risks
  6. Car park liability
  7. Pollution
  8. Damage to cargo and lost cargo

What it does not cover?

  1. Loss or damage due to wilful act of negligence and misconduct
  2. Loss or damage due to delay
  3. Loss or damage due to improper packing
  4. Financial default or insolvency of owners, charterers, managers, or operators of the vessel
  5. Loss or damage due to wire, strike, riot, and civil commotion
  6. Loss or damage arising from the use of nuclear fission, weapon, or any other radioactive force
  7. 1/4th of collision damage
  8. Removal of wreck
  9. Contamination due to radioactive rays
  10. Attack or damage from biological, biochemical, chemical, or electromagnetic weapons

Protection & Indemnity Insurance (P & I Cover)

Protect ship owners from the maritime liability risks associated with owning and operating a vessel.
What it covers?

  1. Illness, Injury, and Loss of Life
  2. Medical Expenses
  3. Damage to Other Vessels or Property
  4. Damage to Cargo
  5. Wreck Removal
  6. Quarantine
  7. Repatriation
  8. Oil Spill and Pollution Civil Liabilities
  9. War and Political Risks
What it does not covers?
  1. Hull Coverage and War Risks.
  2. Cancellation of Charter and Liability arising out of Towage
  3. Limitation of liability to that of a shipowner.
  4. Limitation of liability to that imposed in the absence of contract.
  5. Limitation of the amount insured for any one accident or occurrence

Hull & Machinery Insurance

Hull insurance covers damage or physical loss of Ships.
What it covers?

  1. Fire & Explosion
  2. Stranding or sinking of vessels, loss of hire
  3. Collision, jettisons & piracy
  4. Overturning or derailment of inland vessels
What it does not covers?
  1. Wilful or deliberate damage or destruction of vessels
  2. Destruction of vessels by a weapon of war- atomic bomb, nuclear fission etc.
  3. Radioactive contamination, exposure to chemicals & bio-chemicals, electromagnetic fields.
  4. War, strikes, civil war or act of terrorism

Optional Covers: Political Violence and Terrorism cover
Machinery Insurance: All essential machineries are covered under this insurance and in case of any operational damages, claims can be compensated (post-survey and approval by the surveyor).


For registration of claims and to learn more about our claims process please Contact our dedicated claims team for advice on an incident/claim.