Business Solutions - Marine
 
 
 

Perils of the Sea or Air are some of the most common risks and are internationally recognized, which encompass the loss of or damage to goods whilst being transported, loss or damage to vessel or aircraft or their machinery or accessories and the liability arising out of their use or humans beings on board or merchandise or equipment whilst in their own custody and control or with their agents or counterparts or baileys for the purpose of transportation.

Aviation Risks

Aviation risks primarily involve operation of aircraft and characterized by a constant exposure to potential catastrophe loss including loss of or damage to the aircraft or its contents, liability towards public, towards passengers due to bodily injury or death or due to loss of or damage to their property, loss of or damage to airports or hangers, or liability arising out of the products sold or supplied.

Most of these risks can be insured through specialist Aviation underwriters by tailor-made policies packaging covers to suit specific needs.

 

Charterer’s Liability

Chartering vessel or ship or barge or aircrafts or any other water crafts is common in the transport industry and the person or company who leases crafts from another party may assume full responsibility for the craft, its crew and other liabilities as though he is the owner of such craft. Charter-party agreements generally stipulate the level and the type of cover required by the charterer apart from determining the insurable interest.

It is critical for charterers to consult specialists seeking advice on ascertaining risks and securing suitable insurance policy.

 

Freight Forwarders Liability

Freight forwarders are often called the “Architects of Transport” and may be involved in all kinds of operations, transport as well as ancillary services including issuance of own house bills of lading, which makes the forwarder contractual carrier or “NVOC”.

Companies that provide freight forwarding, storage, haulage or logistics services are liable for transport and traffic risks by law, as per the terms and conditions of carriage, international treaties and individual contracts. Besides representing Principals to whom Forwarder owes an obligation to act with reasonable skill and care, the forwarder may face many other liabilities towards third parties as well as authorities.

Most common risks faced by Freight forwarders are:

  • Liability due to loss of or damage to Cargo
  • Liability due to los of or damage to handling Equipment
  • Liability due to Error and Omission
  • Liability to Authorities
  • Third Party Liability
  • Costs and expenses
  • Financial loss due to dishonesty of employees

 

Most of these risks can be insured under suitably worded Freight Forwarder’s Liability Insurance Policy. If the transporter is only involved in land movements or surface transportation his liabilities are limited to that of a road haulier. Suitably designed haulage liability policy will protect liabilities faced by transporter in his capacity as road haulier. As the risks associated with the Freight Operation is complex in nature you are recommended to consult specialists in this area.

 

Goods in transit

Traders, manufacturers or other cargo owners are exposed to the risks of cargo or merchandize being lost or damaged whilst in transit through their own vehicles or hired vehicles or entrusted to transporters for local movement. These transits can be insured one by one or for convenience under an open cover or open policy which operates in the same manner of Marine open cover. Policies can be designed on estimated value of the cargo being moved by adjusting premium on actual value during the policy period.   

 

Hull & Machinery

Hull & Machinery Insurance is a class of ocean marine insurance that covers physical loss/damage to the ship or vessel insured. This branch of insurance is a very specialized class of insurance concerned with insurance of hull & machinery of ocean going and other vessels like barges, trawlers, fishing and sailing vessels in addition to the ship owner’s other insurable interests, known as subsidiary interests, like freight and disbursements. Usually it is written on an "all-risks" basis.

 

Cargo

Loss of or damage to cargo whilst being transported or held in care and custody of vessel or aircraft owners is the most common form and is one of the oldest and widest classes of insurance. Everyone involved in international trade appreciates that the cargoes transported by sea, air, road or rail are at the mercy of innumerable hazards during transit. Cargo or merchandise often passes through many parties during the transit and importers or exporters are exposed to financial ruin if their cargo is lost or damaged in transit. There could also be financial interest of Banks or other institutions advance loans against the surety of goods also exposed to risks of losing cargo, thereby losing chances of recovering their lent money. The most common risks are loss or damage to cargo due to

  • Use of incorrect machinery or unskilled labor
  • Poor handling
  • Inappropriate or intermediate storage
  • Theft or pilferage
  • Damage due to fire or water
  • Collapse of stowage
  • Natural calamities

 
Apart from these risks you may be exposed to risk of being asked to contribute towards General Average and Salvage charges. As an exporter you may be exposed to certain risks such as financial insolvency of the buyer, abandoned cargo etc. Consequential loss due to loss or damage to cargo can also be included to certain extent. It is also critical to examine the risks of War, Strikes and Civil Commotion.       
 
While each transit or shipment should be insured, if the number of transits is high these can be streamlined through an Open cover or an Open Policy or Goods in transit policy whereby your anticipated transits can covered or held covered at pre determined terms and conditions. Transit Policies can be extended to include the risks whilst the cargo is kept in temporary or permanent storage. If the cargo is for construction or installation purposes the transit policies can be extended to include the cargo whilst being erected.   

Most common types of covers are  

  • All risks subject to Institute Cargo Clauses “A” or ICC “AIR” or Land Transit

  • Limited cover in respect of loss of or damage to cargo due to fire, explosion, stranding vessels, overturning or derailment or land conveyance, collision or contact with an external object, discharge at port of distress, General Average, Sacrifice, Salvage charges and jettison. This cover can be extended to include non-delivery of cargo.

  • Depending on the risks exposed scope of cover can be arranged to suit the needs. Although normally the terms of sale such as F.O.B. or C & F or C.I.F determine who should affect the insurance cover, but the ultimate owner should ensure protecting his interest.  
 

Protection and indemnity (P & I)

Owning or operating ships, vessels or other water crafts can involve in liabilities arising from the general public or crew. The cost involved in establishing liability can be devastating particularly since the ships are expected to sail in international waters and are subjected to international jurisdiction.

Generally the vessel owners or the charterers are exposed to legal liability arising out of Loss of or damage to cargo being carried, bodily injury or death of crew due to accident or illness or related medical expenses, collision with other vessels, collision with fixed and or floating objects, pollution, removal of wreck, life salvage, fines, stowaways etc.,     
  
Most of these risks can be covered through entry into P & I clubs or by taking up suitably worded fixed premium liability policies.

 

Boat Insurance

Boats or yachts or pleasure crafts owned or operated by individuals or organizations are exposed to the risks of losing them or getting damaged or liabilities arising out of their use in respect of passengers, crew, authorities, third parties etc., As a Boat or Yacht owner you are exposed to some of the following risks.
 

  • Loss of or damage to the yacht/craft
  • Loss of or damage to personal effects, equipment, fishing gear etc.
  • Loss of or damage to trailers and other ancillary equipment 
  • Liability due to injury or death of crew and passengers
  • Liability due to injury or death of the third party connected to your boat
  • Liability due to third party property damage
  • Liability whilst the yacht/craft being moored in marinas or public places
  • Liability whilst the yacht/craft being towed on land
  • Liability for water skiers

All these risks can be insured under a properly worded Boat Insurance policy tailored to suit your needs.

 

Boat Insurance

Boats or yachts or pleasure crafts owned or operated by individuals or organizations are exposed to the risks of losing them or getting damaged or liabilities arising out of their use in respect of passengers, crew, authorities, third parties etc., As a Boat or Yacht owner you are exposed to some of the following risks.
 

  • Loss of or damage to the yacht/craft
  • Loss of or damage to personal effects, equipment, fishing gear etc.
  • Loss of or damage to trailers and other ancillary equipment 
  • Liability due to injury or death of crew and passengers
  • Liability due to injury or death of the third party connected to your boat
  • Liability due to third party property damage
  • Liability whilst the yacht/craft being moored in marinas or public places
  • Liability whilst the yacht/craft being towed on land
  • Liability for water skiers

All these risks can be insured under a properly worded Boat Insurance policy tailored to suit your needs.

 

 

Business Solutions
• Motor
• Marine
  - Aviation Risks
  - Charterer's Liability
  - Containers
  - Forwarder's Liability
  - Goods in Transit
  - Haulier's Liability
  - Hull & Machinery
  - Marine Cargo
  - P&I
  - Shipe Repairers Liability
  - Boat Insurance
• Property & Casuality
• Liability
• Engineering
• Specialist
• Life Assurance
• Health
 
 
 

 
 
     
     
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