/ By TJ China Freight / Cargo • Shipping • Transport • Trucking

2023 Marine Insurance Must-Knows

In international trade contracts, there is usually insurance an item, the delivery time of sea freight is usually about 10-15 days as the routes involved are far away, so the unexpected risks are often much more unstable than domestic freight, in order to avoid these risks to maximize your rights and interests, international trade has introduced marine insurance, which will give you more peace of mind, no matter what conditions arise the insurance company speaks to bear The insurance company will cover any risks that may occur.

What is Cargo Insurance

Cargo Insurance coverage is initially intended to cover people who import on export goods by sea, and Cargo Insurance usually covers all or part of the loss on damage to the subject matter of the insurance if the goods are damaged or lost in transit.

Essentially, it is designed to transfer risk for any type of the shipment of goods or property. If you are the owner of a business and you are shipping valuables by sea, without insurance you could suffer irreparable losses.

Transport insurance is always beneficial

The business of importing and exporting goods from one part of the world to another can be fraught with many risks. The availability of insurance coverage can prevent such losses.

Your goods are in transit and you have to wait and hope that they arrive safely at their destination. Can you imagine goods being damaged or lost in transit due to an accident? Your customer will take it very seriously when your goods are in transit and there is an accident. Your customers would see this as a defect in your product. The availability of insurance coverage can prevent such losses.

You will also often fnd that the cost of marine insurance is actually much lower than the overall freight costs. lt is also true that, at the cost of service, you only have to service a little.

What is covered by marine insurance?

This is why you need to have good coverage in your shipping policy. Marine insurance can cover risks or only those risks specified in the policy. it is important to be fully aware of the insurance risk coverage provisions.

This type of policy protects against extensive damage that can occur during transport. For example, the insured goods may be covered if a container falls into the sea in the event of a fire during the transportation of sea cargo.

If anything goes wrong during transit, your insurance policy will cover some or all of the goods so that your business can reduce its losses.

How to buy insurance

Obtaining an insurance plan prior to shipping is essential to protect your goods from any form of accident that may occur during transit. Obtaining such a policy is vital. Anyone involved in the import/export business must be aware of cargo insurance issues.

You should consider and review it carefully. How you insure your goods can vary greatly in terms of protection and insurance costs Seller’s quote

This is a CIF or CIP contract where you pay for goods with cargo insurance already included. The supplier will be responsible for insuring your goods, the supplier is the insured and if there is a problem with the goods the supplier will take care of everything.

Buying through a China freight forwarder or customs broker

In addition to providing sea freight services, Chinese freight forwarders also offer some secondary services to help carriers purchase cargo insurance. When you ask a freight forwarder for a freight quote, you can ask them to take out insurance through them.

The insurance rate usually depends on the value of the goods you want to insure, and once the insurance is in place, you are insured and the freight insurance will take the risk for your goods. and in the unlikely event that you have some problems with your goods and need to negotiate with the insurance company, the freight forwarder will take care of this. Carriers

Some carriers, such as courier companies, can offer freight insurance on a per-shipment basis. Usually, this means that you will have to pay a small premium based on the value of the goods.

They can give you a quote at the time of dispatch to you. lf necessary, you will receive a certificate of insurance in order to make a claim.

Buy it yourself

This is a free option. lf your purchase contract does not include cargo insurance then you can buy it yourself. By bypassing freight forwarders, customs brokers, and overseas suppliers, you buy your own cargo insurance. Deal directly with the insurer and search their network to find the bespoke marine cargo insurance that best suits your individual business needs.

If you have an application, you are the insured and the insurance company issuing the policy is entitled to process the claim fairly.

In any case, marine insurance is a necessary item in trade, it is just divided between different traders.

/ By tjchinafreight ivy / Shipping

Importance of cargo insurance

Importance of cargo insurance
Importance of cargo insurance

First, a fire in Maersk Honam in the Arabian Sea was a stark reminder of the dangers the crew faced in the ocean. The Singapore-flagged vessel was en route from Singapore to Suez with 12,416 TEUs on board when the fire broke out. At the time of writing, the blaze, which had been raging for five days, was under control, but four crew members were reported to have died in the blaze.

This first underscores the importance of crew safety at sea. But as a shipper, knowing that you have ocean freight on a burning ship is worrying. The Indian Coast Guard classified the blaze as a "chemical fire", which raised questions about the safekeeping of cargo and the declaration and documentation of all cargo, whether dangerous or not.

It really underscores the importance of having cargo insurance.

Why should you always buy cargo insurance?

By law, all carriers are obliged to provide a minimum amount of insurance. But as the word suggests, it offers limited coverage. As a shipper, you can and should purchase additional cargo insurance to further protect your merchandise. This will cover your shipment in storage and in transit until it reaches the buyer's safe hands.

The stowage list for each ship is prepared based on the data on the manifest provided by each shipper carrying the cargo. Accurate cargo declarations play a vital role here. Due to the large volume of shipments by sea, customs simply does not have time to physically inspect and verify each shipment.

As a shipper, you can only ensure that you play your part by filling out all documents and declarations as accurately as possible. This includes bills of lading and packing lists, etc. You may not have control over other cargo on the same ship, or LCL containers, but you should take the worst-case scenario of every shipment - cargo insurance.

What is a general average?

There is a concept in the maritime world that everyone in the industry should be familiar with - generally average.

Legal Definition of General Average

"A principle of admiralty law, in the event of an emergency, if the cargo is abandoned or costs are incurred, the loss is prorated among the parties who have a financial interest in the voyage."

Unless you have general average insurance, general average is separate from the ocean cargo insurance purchased for your cargo. But with insurance, you can at least insure against loss or damage to your cargo.

What your cargo insurance covers

Cargo insurance varies by cargo, and different insurance companies have different names. In general, however, all cargo insurance should cover physical damage to the cargo due to unforeseen circumstances beyond the owner's control. These apply to marine accidents, shipwrecks, pirates, etc. All this is provided that the goods are properly packaged according to their type of transport. Appropriate declaration forms must also be completed if necessary.

If your cargo suffers damage due to poor packaging, it is unlikely that your cargo insurance company will cover those losses. Please contact your freight forwarder (TJ chinafreight) or insurance company for more information on the policies available to you.