Marine insurance for cargo

Since the development of insurance system through naval insurance, as it has evolved in various forms, so has the development of naval insurance. Various types of insurance policies have also been introduced to deal with the risks arising out of the ship, the ship's cargo, the ship's freight, the carrier or the shipping company's liability. It is discussed below:

1. Voyage policy: An insurance policy which specifies a specific voyage and guarantees compensation in case of damage to the ship or ship's goods during the specified voyage is called voyage policy. For example, a ship carrying goods from Chittagong will go to London and insurance will be sold to the effect that in case of loss of ship and ship's goods during the voyage, compensation will be paid. This is a travel insurance policy.

2. Time policy: The insurance policy that is used to insure the ship, goods or freight for a certain period of time is called time insurance policy.  This type of insurance is usually not for more than 12 months. For example, from June 2020 to March 2026, any ship, product or freight is insured for damage. If there is any loss to the insured during this period, the insurer will pay compensation. It is time insurance.

3. Mixed policy: An insurance policy that mentions a specific journey as well as a time is called a mixed policy. For example, from December 2021 to January 2023. The cargo ship will reach London from Chittagong. If there is a mention of compensation during and during this journey, it is called mixed insurance.

4. Valued policy: The amount of money that determines the value of the insured's insured subject in the marine insurance policy is referred to as the sum insured in the insurance policy is called the valued policy. In case of loss of insured content, the insurer is obliged to compensate the insured up to the maximum fixed amount. However, in case of partial loss, the amount of integrated proportional loss is calculated.

The purpose of finding out the amount of such loss is to ensure that due to the increase or decrease in the value of the property at the time of loss, the aggrieved party can get its due amount considering the premium paid.

5. Unvalued policy: An insurance policy in which the insured determines the value of the insured item after the loss has been determined without prior notice is called unvalued policy. In this case, it is written that the value of the content is determined by the policyholder while collecting the insurance policy. In case of loss of ship or goods during the period or on the voyage, the insurer assesses the damaged property and in such assessment the maximum sum insured amount is bound to be compensated.

8. Port Risk Policy: Some ships, barges and lighters have to operate within the port limits to facilitate loading and unloading of goods at the port. These vehicles or the equipment stored in them may be damaged while in the port or while working. The insurance policy issued against such risk or loss is called port risk insurance policy.

9. Floating policy: If more than one ship of the same owner or organization is insured under the same policy for a certain period of time, it is called floating policy. In this case the average price is determined by considering the condition, value and price of different ships and thus the sum insured is determined. There is no need to write so many things in the insurance policy when and where a ship is leaving. Only when the ship leaves the announcement to this effect.  Therefore, both the insurer and the insured are saved from additional hassle. However, the problem is that determining the amount of advance premium is quite complicated.

10. Unvalued Marine Policy: The amount of the sum insured is determined at the time of insurance. In case of loss of insured content by the insured event, the amount of loss is assessed and the amount of compensation is determined, it is called unvaluable shipping. Such insurance policy covers the cost of goods, freight, shipping costs and other expenses at the time of indemnity but does not include any profit. This type of insurance policy is also called open shipping policy.

11. Camp Blanket Policy: The Blanket Policy which is adopted for the risks arising within certain geographical limits and period is called Camp Blanket Policy. In such insurance policy the amount of sum insured and the time of subtraction of premium are determined.  However, the amount of premium has to be adjusted at the end of the insurance period according to the amount of risk.

12. Named policy: The name policy that is accepted by mentioning the name of the ship and the name of the owner of the product is called name certificate. Named marine Specific marine.

13. Single vessel & fleet policy: A shipping policy through which the insured insures for one or more ships is called a single vessel & fleet policy. With a single shipping policy, the insured can insure only one ship through one policy. In order to insure more than one ship, more than one ship has to take insurance policy.

10. Block policy: Block policy is taken to get relief from the damage caused by the blockade of goods due to any kind of political instability or any other reason. Blockchain insurance covers inland risks in addition to existing risks on the waterway. For example, all risks can be insured from the time the cotton is processed to the time it reaches the destination. In this case, the risk of lifting and unloading the cotton from the ship and transporting it by land is also included in such insurance policy.

11. Foreign currency policy: Foreign currency is used in import-export trade. Decrease in foreign exchange rates - the kind of risks that importers and exporters face due to growth.  He can also be insured.  Such insurance is also covered by naval insurance.

12. Shipbuilding policy: Vessel construction policy can also be taken for the type of risk that arises during the construction of the ship. The insurance policy that is taken out for the risk of shipbuilding is called shipbuilding insurance policy.

15. Joint policy: In many cases, the insured can take out insurance policy by paying premium separately with more than one insurance company for the same insured subject. In such a case, in case of loss of insured content, the insurers pay compensation through proportional participation. The policyholder accepts such insurance policy for large value assets so that only the insured can claim the insurance claim from another insurer if it is impossible to pay the claim.

16. Open covers: For those who are always importing and exporting large sums of money, it is difficult to open an insurance cover every time. To avoid this hassle they have open insurance for one year. There are two types of insurance policies:

(i) Open cover note: Open cover note which covers what goods the insured will import or export within one year, for which risks the insurance claim will be paid, what will be the maximum sum insured in each shipment. Says.  In this case the amount of premium is also determined as per the declaration of the sum insured at the beginning of the year and it has to be paid to the insured. Under such notes, all the shipping documents and ancillary documents have to be sent to the insurance company along with the shipment. In light of this, insurance companies issue naval insurance policies

(ii) Open policy: In order to avoid the hassle of issuing insurance policy every time shipment in open cover note, the insurance company issues insurance policy with special benefits to its very loyal traders is called open insurance policy. In this case, there is no need to issue insurance policy by the insurance company for each shipment.

While the English word ‘marine’ is commonly used to mean a ship, the term ‘marine insurance’ is used in a much broader sense.  Various issues covered by marine insurance;  For example, for ships, ship-based products, ship's hulls, etc., insurance policies can be collected together or separately.  Which is considered to be covered by marine insurance.  The following is the classification of marine insurance:

1. Hull insurance: There may be partial or total damage to the vessel while navigating the sea. A ship is called Rima if it is insured by the owner of the ship or a person who has an insurable interest on the ship to cover the loss financially.  Typically a sea storm, a collision with a submerged mountain or a floating iceberg, an attack by an enemy country warship or pirate, or in some other way the destruction of a ship at sea. The owners or vested interests of these very valuable ships purchase ships to protect them financially from such dangers. Such insurance is usually for one year.

2. Cargo insurance: Cargo insurance can cause shipwrecks due to maritime hazards while transporting goods from one country to another by sea.  Commodity insurance is the insurance that is given only to compensate the goods in case of shipwreck. Such insurance is also covered by marine insurance. When sending goods in foreign trade, the representative of the exporter or importer loads the goods on the ship, collects the goods insurance policy and sends it along with other shipping documents to the importer. If the importer sees any damage to the product at the time of receipt of the goods, he can collect the compensation by showing such insurance policy. This type of insurance is for a specific voyage, that is, for a period of time until the goods arrive.

3. Freight insurance: If the cargo is lost, the carrier cannot collect the rent from the owner.  This causes financial loss to the transport company or shipping company. The insurance policy that is in place to financially protect the carrier or shipping company from such losses is called rent or fee insurance. Although such insurance can be done separately, it is covered by marine insurance. Many times advance rent or fee is paid. In that case, if the product is destroyed on the way, the advance rent along with the product is also lost. In this case, the owner of the product or someone on his behalf can collect the insurance policy together or separately with the product insurance. In case of loss of the product, the amount of insurance fee along with the product can be recovered as compensation.

8. Marine liability insurance: If there is any loss of goods due to any dishonesty or negligence of the ship's captain or crew while transporting the goods, then the liability for the loss of that product falls on the transport company or the ship owner. In many cases, shipwrecks can result in physical injury or loss of life on board. It is not uncommon for ships to sail at any time or to land at a port without loss of life or property to another ship. The insurance policy that is opened to protect the transport company or ship owner from all these risks is called Marine liability insurance. Such liability can be eliminated through naval liability insurance.

6. Increase of employment facilities: Many people are directly and indirectly employed in marine insurance companies. Many industrial and business establishments are also formed with the direct and indirect invested capital of such insurance companies. Wherever many people are employed. The development of the shipping industry with the help of insurance also created employment opportunities for many. As a result, the problem of unemployment is reduced.

10. Aid to commerce: A large source of direct assistance for Marine insurance traders. Without insurance support, a large portion of the capital invested by traders is always at risk. Marine insurance traders take risks. Marine insurance helps traders transfer their risks by taking risks.