According to the latest numbers of a well-known company, almost 70-75% of the total amount of the world’s trade has been done through the sea. There are a lot of questions about Marine Insurance and some of those are being discussed here with complete detail. To carry various products from one place to another, cargo ships are the main source of transportation. Therefore, to eliminate any chance of loss may be accomplished through Marine Insurance. Actually, Marine Insurance is a type of insurance made to secure interests in the cargo shipping industry.
It is believed that Marine Insurance is the first developed form of insurance which our ancestors used centuries ago. In fact, it is transforming and improving from that day. In medieval ages, Marine Insurance covered any damage or loss of ship or property. From this, it can be said that it was the first risk hedging instrument of human history.
What is Marine Insurance?
Marine Insurance is a way to secure cargo ships and load which those ships are to carry from one place to another. Cargo insurance is a sub-category of Marine insurance. Marine Insurance covers any loss or damage to ships, cargo, terminals, and all types of transport helping the property to move from one site to the final destination.
Protection and Indemnity
According to the Oxford dictionary, Protection means the action of protecting or the state of being protected. And Indemnity is a type of security paid or given to cover a loss or other financial burdens. Protection and Indemnity Insurance is a type of insurance that covers liabilities for loss and damage which the insured party has caused to the others.
Business is a way to take risks and to manage risks as well. Most of the businesses are looking for options to cover any loss or damage that may happen. And when it comes to shipping and cargo industry – holding the maximum share in worldwide markets – Marine insurance is the perfect option.
Mostly, insurances are written on an occurrence basis. It means to cover claims that arise out of damage or any injury which happened during the policy period, regardless of the fact when claims are made.
Well, to be very frank, the Marine industry is as vast as one huge industry could be. It includes onshore and offshore assets, properties, ships, cargoes, marines, container terminals, ports, and oil pumps. Comprehensive Marine insurance covers any loss or damage to them all.
Moreover, Marine Insurance also covers Hull, Marine Casualty, and Marine liability. Another thing to add here is that if you transport goods through courier, shipping insurance can be used.
To sum up, Marine insurance is a way to make cargoes, ships, and the property being transported. It is hundreds of years old tested way to hedge risks as its origin found back in medievals. Marine insurance is the most trusted and developed instrument to protect cargoes, ships, marines, container terminals, ports, and oil pumps. Furthermore, it covers Hull, Marine Casualties, and Marine liabilities.