Sunday 16 November 2014

MUST READ! HOW MARINE INSURANCE WORKS.


First of all, you should know the meaning of marine insurance, the main types of  marine insurance, importance or advantages of marine insurance, the risk covered by marine insurance and how marine insurance cost. there are several questions and answer which will helps you to get the general concept of marine insurance as shows below;


Q1.      Who Needs Marine Insurance?
A1. Anyone who Imports, Exports or Moves Cargo from one place to another or who stands to lose financially if the goods are damaged or lost

Q2.      Why Should Cargo be Insured?
A2.      Because it is only too easy for Cargo to be lost or damaged in transit, whether you own the goods or have a financial interest in them. A loss could be Financially Crippling

Q3.      What are the types of covers available?
A3 There are three internationally recognized Clauses under which cover can be granted. These clauses are known as “Institute Cargo Clauses”

Q4.      What risks are covered under Institute Cargo Clauses (A)?
A4. This is the widest possible cover, which covers all risks of loss or damage to the subject matter (Cargo) except a few standard Exclusions.
             
Q5.      What risks are covered under Institute Cargo Clauses (C)?
A5. This is the most restricted clause and covers only loss or damage reasonably attributable to:

         Fire

         Explosion

         Vessel being stranded or sunk

         Overturning or derailment of the land conveyance

         Collision of the vessel

         Discharge of cargo at port of distress

         General Average Sacrifice

         Jettison

Q6.      What risks are covered under Institute Cargo Clauses (B)?
 A6. This Cover is similar to “C” Clause, but in addition covers :
                              •         Earthquake, volcanic eruption or lightning

         Washing overboard.

         Entry of sea, lake or river water into vessel, craft hold conveyance, container, lift van or place of storage.

         Total loss of any package lost overboard or dropped whilst loading/unloading from vessels.


 N.B: you have any Idea about ''INSTITUTE CARGO CLAUSES A, B, and C''? if you do not  stay there. 

thank you. by Frank Kamina.

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