The Marine Insurance Blog

by: Djai Tanji

The Surveyors is an important group in the marine industry. If the Classification societies are the loss control part of the industry, the surveyors on the other hand are the “claims” side. The surveyors are an independent firm that mostly reviews damages and they also make recommendations to the insurance company. Because of the given fact that they are an independent firm, actions can only be taken when the insurance carrier approves recommendations. Ocean marine also is a highly specific line of coverage which a number of excellent and dedicated brokers work with several agents to offer and provide placement service.

by: Djai Tanji]

The Ocean Marine Hull Coverage offers and provides the physical damage coverage for the vessel and possessions that is a part of a certain vessel. Moreover, adding up to the ocean-going vessels, this Hull coverage is written on several diverse kinds of commercial craft that controls rivers, harbors and other inland waterways. These vessels include tugs, lighters, several and different types of work vessels used to load or unload ships, barges, river towboats and miscellaneous classes of floating equipment used around the coastal and inland ports. Offshore rigs and related kind of fixed property in the ocean are also entitled and qualified for hull insurance.

It is important to note that most insurance policies are personal contracts. The risk depends on the nature of the person who controls or manages the property and the particular use he makes out of it.
However, marine and life insurers allow policy benefits to be transferred from one person to another. This in insurance is called assignment. Assignment is simply the transfer of rights of one person to another, usually by means of a written document. The person granting the right is known as the assignor and the party to whom the right is granted is called the assignee.

Utmost Good Faith

The principle of utmost good faith is indispensable in any insurance contract. Under the open policy the insurer usually knows only of the shipments made by the exporter after the receipt of the insurance declaration form and/or the copy of the insurance certificates. Under such circumstances, a consignment may have reached the importer in:

good condition, that is, without sustaining any loss or damage, before the insurer knows of such consignment. If the exporter knows that the consignment has safely reached the importer and deliberately does not declare such consignment in the insurance declaration form in order to avoid paying the insurance premium, such action is a breach of good faith. Consequently, the insurer may cancel the insurance policy issued to the exporter when the exporter’s bad faith is known.

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Global Positioning System (GPS) and the Marine Industry go well together since boats really don’t know where they are exactly and certain individuals have to constantly know where they are for them to be able to breathe easily and relax. This is one of the importances of having a GPS unit in a marine vessel.

To finding the best Marine GPS device, you really have to ask yourself what you are looking for and for what purpose you would really use it. And when I say research, you really have to research and base it on to your criteria that you’ve set.

In the case of races it is straightforward. You say where you are going, how long the race is, and when you expect to finish. If you are going on an extended cruise the insuring company or broker will want to know much more about the vessel in terms of its internal and external ballast, whether it has a centerboard or lifting keel, what sort of self-steering it has, the type of construction, and particularly the thickness of the topsides, deck, and cabin top. There will be a number of items covering radio call signs, the color of various parts, the sort of radio sets and the frequencies on board, what radio watch schedule is proposed and more details about the engines. These items are needed in case a search has to be initiated.

by Andrea

The term “salvage” refers to the performance of representing an assistance to a vessel in agony. Separately from the deliberation at the sea, it is conventionally “a place of safety”, and  sailors honour-bound to make assistance as mandatory. It is visibly in underwriters’ interests to give assistance to the vessels that has been broken down. In the guidelines, the rule includes a “sue and labour” segment  that covers the practical costs gained by a ship owner to avoid a larger defeat and downfall. At sea, a ship in misery and danger will naturally be in agreement to “Lloyd’s Open Form”.

Have you come across an insurance terminology that you don�t understand and were afraid to ask to your agent? Here are a few of them for you to better understand what you are getting into.

Claim is used to describe the process of getting an insurance company to pay out on the policy you bought from them.

Exclusions are events not covered by an insurance policy

Indemnity – the principle by which insurance policyholders are put in the same financial position after a loss as they were immediately before it.

Lloyd’s of London – An insurance market organized into syndicates, which underwrites most types of policy.

The cargo (marine) insurance works on the principles of insurable interest, utmost good faith, and indemnity.

Insurable Interest

When the goods are lost or damaged and the owner of the goods (i.e., the title holder in the goods) suffers a loss, fails to realize an expected profit, or incurs liability from the loss or damage, the owner (the title holder) is deemed to have an insurable interest in the goods.
When the exporter delivers the goods, the insurable interest in such goods transfers at the point and time where the risk shifts from the exporter to the importer, as determined by the international commercial terms used. For example, the point and time where the risk shifts in:

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Troubles at sea can result in big losses for companies relying on the products on board. No agency tracks how much cargo is lost at sea around the world each year.

However because ships can hold such huge loads, accidents take on a large extent. One sunken ship can carry thousands of cars worth tens of millions of dollars. There is a great need for marine and ocean protection, as the marine entrepreneur must be protected against an ever-increasing suit-conscious public.