Marine Transit Insurance offers a lot of insurance policies and which is why one has to take a deep dive into the ocean of Marine Transit Insurance to figure out an insurance policy suited to their requirements.
But we’re here to share that load of research that you would have to do on your own, by providing you with 12 types of Marine Transit Insurance with their highlights.
So ready to choose your Marine Transit Insurance policy?
Let’s Begin
Types of Marine Transit Insurance
A Marine Transit Insurance policy is basically an agreement between the insurer and the insured that the insurer will ensure any physical damage to the goods when they are in Transit aka being carried or moved from one place to another.
- Open policy – An open policy is a type of policy that secures the transit journeys for an unlimited number of policies until the contract/policy exists.
Businesses that are involved in a high volume trades and export/import their goods require this type of policy as they cannot bother themselves to buy a new policy on shipping each transit.
Until the policy is cancelled or the last payment becomes overdue, the policy secures the transit for n number of trips.
- Voyage policy – This policy, as its name suggests, secures the cargo in transit for a single voyage. Once the transit reaches its destination, regardless of the time it takes for the voyage to end.
If you’re a small business owner who ships their goods on occasion then this policy is feasible for you.
- Time policy – A marine cargo insurance policy designed on the factor of time is one that provides coverage for n number of transit for n number of voyages for a pre-determined period of time, and most commonly, that fixed period of time is one year.
The exception is in some cases where the insurer and the insured have mutually agreed on a time frame of more or less than one year.
Again, this policy is best suited for businesses who either have a logistic business or they export their goods very frequently.
- Mixed cover – A mixed insurance cover is a type of marine insurance that provides factors in the element of time and exclusivity of the voyages both.
So essentially, it provides coverage for a specified number of voyages for a specified period of time.
- Single vessel policy – As the name suggests, a single vessel policy insures only one ship of the insured.
- Fleet policy – When a person wants to secure a fleet of ships then instead of buying an individual policy for each shipping unit. They can opt for this policy that allows them to secure their entire fleet of ships for n number of voyages.
This policy is best suited for logistics businesses.
- Unvalued policy – An undervalued insurance policy is one where the value of the insured goods is not decided at the time of underwriting the policy. The valuation of the cargo is only done when the claim is filed and the insured has to disclose the true value of the insured cargo with the help of invoices or estimates
- Valued policy – Similarly, in the case where the value of the insured cargo is disclosed at the time of underwriting the policy is called a Valued policy.
When the claim is filed the pre-estimate provided by the insured is taken into consideration instead of the amount of the loss incurred. Even the depreciation is not a factor during the claim filing.
- Block policy – A block policy is a type of cover that provides an all-risk cover. This insurance policy is the highest in demand since it caters to almost all types and scales of business owners.
It covers all modes of transportation like waterways, rail, road, and air. And it provides coverages against all types of risks you can possibly think of.
So it is safe to say that this policy is suited for most businesses out there.
- Port-risk policy – A port-risk policy is an insurance policy that protects a docked ship or a ship under repair from possible risks and damages.
It is an all-risk cover. This means that it covers all types of risks unless the two parties decide otherwise.
- Named policy – it is basically an insurance cover in which the name of the ship is mentioned.
- Wager policy – A wager policy is a policy that provides coverage to the insured in cases where the insured is not able to prove the possession of certainly damaged goods legally.
It might sound like a sweet deal but the claim under this policy is totally dependent on the insurer’s discretion. On top of that, this policy is only issued in the state of contravention of the law.
So there you have it. Here we have mentioned all types of Marine insurances that you as a business owner should know, in case, you need one.
You can browse all of these types of Marine Insurances on J Insurance.in instantly to generate a quote without having to wait.
Thanks for reading this through!
