Why Marine Insurance?

Any type of insurance is intended to mitigate risk in the event of unforeseen events such as car accidents, property, and environmental damage. When it comes to ships, the stakes are higher because all factors are at play, such as the risk of losing valuable cargo or expansive ships, the risk of environmental damage due to oil pollution, and the risk of losing valuable seafarers’ lives due to accidents.

Different Maritime insurances are made mandatory for ships and ship owners to take to ensure that all risks can be handled without a shortage of monetary funds when needed the most. The ISM can only be deployed on ships after that. There are several different forms of marine insurance available for a client’s advantage, and each one is viable in its own way. Shipowners, cargo owners, and charterers all need different forms of insurance.
Hull Insurance: Hull insurance mostly covers the vessel’s torso and hull, as well as all of the ship’s articles and furniture. This form of marine insurance is typically purchased by the ship’s owner to protect the vessel in the event of a mishap.

Machinery Insurance: This insurance covers all critical machinery, and in the event of any operating losses, claimants may be paid (post-survey and approval by the surveyor). Hull & Machinery (H&M) Insurance combines the above two policies into one. The H&M insurance can also be expanded to provide coverage for war risks and strikes (strike in port may lead to delay and increase in costs).

P&I (Protection and Indemnity) Insurance: This insurance is issued by the P&I club, which is a shipowner mutual insurance company that covers third-party liability and risks not covered by regular H&M and other policies.

Liability Insurance: Liability insurance is a form of marine insurance that seeks to compensate for any liability incurred as a result of a ship colliding or sinking, as well as any other caused attacks.

Liability Insurance: Liability insurance is a form of marine insurance that seeks to compensate for any liability incurred as a result of a ship colliding or sinking, as well as any other caused attacks.

Marine Cargo Insurance: Cargo insurance covers the marine cargo transported by ships as well as the belongings on board during their voyages. It safeguards the cargo owner against damage or loss of cargo as a result of a shipwreck or a delay in the voyage or unloading. Third-party liability insurance for marine cargo covers damage to the port, ship, or other modes of transportation (rail or truck) as a result of the hazardous cargo transported by them. The time limit for right-to-compensation claims varies depending on the policy’s content, and action must be taken within the time frame from the date of the injury. For newly constructed ships, the shipowner is required to purchase insurance from the shipyard for a set period of time (usually one year) after yard delivery.