Doing business has an element of risk. The risk multiplies when goods are in transit from one place to another. If you are an exporter, you are exposed to a higher risk until your goods reach their final destination. Thus, choosing the right marine insurance plan is very crucial. So, let us tell you about the different types of contracts in marine insurance.
Many business owners often misunderstand marine open policy as a complex proposition. However, businesses must be properly insured to avoid financial setbacks in the event of an accident or any unprecedented event.
It is an agreement between the insurer and the insured wherein the insurer agrees to pay, per the agreed terms, the damages or losses that occur during the marine journey. This contract also includes incidents that occurred during any mode of transportation. Goods that are shipped by air or roadways also come under marine insurance. The basic principles of a marine insurance contract are derived from the Marine Insurance Act of 1963.
Marine cargo insurance plans are crucial for various reasons. One of the key reasons for buying a marine insurance policy is that marine accident is widespread and highly expensive too! Recovering the loss from standard marine insurance is not an easy task.
Getting a customized marine cover plan can make a huge difference and put you in a better financial situation vis-à-vis not having a marine insurance plan.
Just like any other insurance contract, a contract of marine insurance is also based on the following principles
It can be broadly categorized into four.
As a business person, if you are engaged in the transfer of goods, marine insurance benefits cannot be ignored. A marine insurance policy can ensure the safety of your goods while they are being transferred. Here are a few advantages of a it are as follows:
Final Words
Marine shipping involves a lot of thought, planning, complex dealings and the incorporation of risk mitigation tools. A marine insurance contract can help mitigate financial risks and losses to the property, including vessel, goods, etc. Since customisation is possible, businesses should carefully decide on picking up the right marine insurance policy that mitigates the risk efficiently.
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