Major Reasons to Buy Marine Insurance if you are a Shipper

Due to the increase in trade and globalisation, businesses are now becoming more dependent on different types of insurance to protect their bottom lines. There is an increase in demand for marine insurance for shippers due to rough weather, a rise in pirate incidents and potential cross-border shootouts, labour stoppages and other unavoidable reasons. Therefore, it is always recommended to buy marine insurance to prevent any loss due to such events. In this article, we will discuss in detail the reasons to buy marine insurance, especially for a shipper.

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Reasons to Buy Marine Insurance for a Shipper

When shipping to other parts of the globe, the following are the main reasons to buy marine insurance for trade safety:

Increase in Cargo Robberies

Global supply networks are hampered by cargo theft, which has a direct financial impact on shipowners. Cargo thefts are becoming more advanced and well-planned leading to humongous losses to the exporter or the shipper. There have been high pieces of evidence of fraudulent pickups and false names; increasing the instances of cargo theft at an alarming rate. Thus, a shipper should buy marine insurance to protect against losses.
Disaster can be Experienced Anywhere

Seas and oceans are highly prone to disasters like typhoons, storms, cyclones, shipwrecks, pirate attacks, and others. These calamities come uninformed and are rarely avoidable. Marine insurance safeguards the shipper from such calamities. If the route of the ship is exposed to areas that are highly prone to natural calamities or pirate attacks, it is a smart option to buy marine insurance.
Damages to Cargo

A cargo is considered to be damaged when a shipment upon receipt by the buyer is in a bad condition. The reasons behind cargo damage can be due to rolling, dropping, breaking, being knocked, orpoor warehousing facilities. Even after taking precautionary measures, damages can happen and if the cargo is not covered under marine insurance, the shipper might suffer huge losses.
Carriers are not Liable for Any Losses

By law, carriers are excluded from being for losses arising from various factors. In some cases, even if they are termed liable, the carriers usually restrict their responsibility. Therefore, shippers should buy marine insurance to avoid financial losses.
Contractual Requirement:

Many shippers may require to buy marine insurance policies as stated in their contracts. The Shipper’s Sale Contract may make marine insurance mandatory for the shipper, failing to do so will leave the shipper liable for financial loss.
Customisation:

Customising marine insurance is not a difficult task. These days insurance companies allow for customisation based on the need of the insured.

Case

Royal Exports Ltd. deals with the export of fabrics. The shipper was not too keen on buying marine insurance. However, the buyer of the consignment stated in the contract, that the shipper needs to mandatorily buy marine insurance. Royal Exports Ltd. thus purchased a marine insurance policy to fulfil this requirement. Unfortunately, due to a sea storm, a major portion of the consignment was lost. Thanks to the marine insurance policy, the losses were covered.

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Conclusion

Marine Insurance is advantageous as it provides coverage for the loss or damage to the cargo, ships, and from the place of origin and the destination. As a shipper, before you decide to risk your consignment and skip insurance, make sure you understand the potential losses your business might have to suffer. The above reasons to buy marine insurance can help shippers in ways more than one and should not be ignored.

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Policybazaar for Business - Marine Insurance - Customer Reviews

View all 114 reviews

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4.3

out of 5

Based on 114 reviews

14 users

87 users

13 users

0 users

0 users

3.8 April 20, 2023

Anas

Great Experience

I recently purchased Marine insurance from Policybazaar for my shipping business and I must say I am thoroughly impressed with their service and coverage. From start to finish, the experience has been smooth and hassle-free.Thankyou.

Mizoram

4.3 April 03, 2023

Vaishnav

Provides Comprehensive Protection

When it comes to coverage, Marine insurance that i bought from PolicyBazaar has exceeded my expectations. It provides comprehensive protection for my cargo and vessels during transit, ensuring I can focus on my business operations with peace of mind. Thankyou.

Assam

4.3 March 17, 2023

Umang

Excellent Services

I highly recommend Marine insurance from PolicyBazaar website to anyone in the shipping or logistics industry. Their user-friendly website, comprehensive coverage, and excellent customer service make them stand out from the competition. With Policybazaar, I feel confident in navigating the high seas, knowing that my business is well-protected. Thank you, Policybazaar.

Chennai

4.3 February 28, 2023

Vishal

User Friendly Interface

The website's user-friendly interface made it easy to compare different plans and find the perfect fit for my business needs.Thanks

Gurugram

4.3 February 11, 2023

Parth

Prompt Services

I appreciate the transparency and honesty with which Policybazaar handled my claims. They were prompt in processing my claim and their claim settlement process was hassle-free.Thanks PolicyBazaar.

Noida

3.8 February 10, 2023

Rishabh

Exceeds Expectations

I recently had the pleasure of purchsing marine insurance from Policy bazaar website and I must say it has been an outstnding experience from start to finish. I am thrilled to share my positive customer review, as this truly exceeded my expectations. Thanks PB.

Jamshedpur

3.8 January 31, 2023

Arvind

Easy Navigation

The ease of navigating the Policy bazaar website and finding the right marine insurance policy was impressive. The website's user-friendly interface and intuitive design made it incredibly simple to compare various options, understand the coverage details and make an informed decision. I appreciated the transparency provided throughout the process. Thanks.

Ajmer

3.8 January 21, 2023

Vishal

Excellent Support

The customer service provided by Policy bazaar was decent. Their team was responsive, knowledgeable and went above and beyond to assist me at every step. Their professionalism and commitment to customer satisfaction were truly commendable.Thankyou.

Mumbai

4.3 January 11, 2023

Sanjeev Rathor

Efficient Process

When it came to claims processing, Policy bazaar demonstrated remarkable eficiency and effectivenes. I had an unfortunate incident during the coverage period and filing a claim was a breeze. The entire process was streamlined and their team guided me throuugh every necssary step, making it hassle-free. The promptness with which my claim was setled reflected their commitment to their customers' well-being and peace of mind. Thankyou.

Pune

3.8 January 01, 2023

Kunal

Comprehensive Coverage

I must mention the comprehensive coverage provided by the marine insurance policy I purchasd through Policy bazaar. It offered me the necesary protection and peace of mind. Thankyou PolicyBazaar.

Indore

114 Review Item

Disclaimers⁺
*Savings of 42% are based on the comparison between the highest and lowest premiums for a Rs 50 lakh sum insured under Inland Transit Clause B or Institute Cargo Clause B for single transit cover of auto spare parts with shipment type of Inland(Domestic) and road as mode of transport. Premium varies on the basis of Occupancy, Business Activity & Coverage Type
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