Purpose of Insurance cover
Cargo insurance provides its owner with protection against losses resulting from damage to or loss of goods caused by an insured risk. It also provides protection against financial claims made against the owner of the cargo in the case of declared general average.
Scope of coverage
Insurance covers can be obtained for All Risks (A) or Restricted Cover (C).The ‘Restricted Cover’ provides for coverage in respect of certain named risks only
Types of cargo insurance policies
A specific insurance policy can be purchased for just a single shipment of goods. In the case of traders with the regular flow of imports and exports, an Open Cover/Policy is normally effected. Such Open Cover affords protection to the trader in respect of all his shipments in accordance with prearranged rates, terms and conditions. Under such policy of insurance, the trader undertakes to declare all his shipments on a regular basis.
The insurance covers the assured’s economic interest in the vessel (ship, yacht, boat, fishing vessel, Jet Ski, etc. etc.) and its equipment and cover is offered for total and partial losses of the insured property. The Hull & Machinery insurance also contains an element of cover for liabilities to third parties; namely the assured’s liability for collisions and often liabilities for a vessel’s striking fixed or floating objects. This insurance also covers the assured’s costs of measures to avert or minimize loss (sue and labour), salvage and general average.
Loss of Hire Insurance
The Loss of Hire insurance primarily protects the ship owner against losses where the ship is wholly or partially deprived of income as a result of the vessel being out of operation whilst repairing a damage that is recoverable under the Hull & Machinery policy. FYI, this cover will not provide protection to the assured if the vessel is laid up due to lack of work or scheduled repairs or dry-docking. In order to enable the assured to recover the loss of hire under this policy there has to be an accident resulting in the damage of the ship and the same must be recoverable under the H&M insurance policy.
Hull Third Party Liablility
The insurance covers the insured’s legal liability arising from the ownership and use of the insured vessel in respect of death or bodily injury to any person, loss of or damage to property not belonging to the insured, including other boats, piers, docks, wharves, jetties or pontoons.
Protection & Indemnity Insurance
P&I cover responds to liability for damage or loss which the assured has caused to others. The purpose of Protection and Indemnity (P&I) insurance is to shield the assured from the risk of his liability to others arising from his maritime activities. Unlike loss insurance, P&I responds to liability for damage or loss which the assured has caused to others.
Road Hauliers Liability insurance or Transport operator Liability insurance
Hauliers’ insurance policies protect the operator from any loss or damage to goods that he is transporting arising out of his negligence. It also covers Legal liability against claims from third parties for damage to property or injury, death and/or disease.