Oceans are the most viable route connecting international borders and facilitating the transportation of bulk goods. While sea routes allow cross-border transportation, the risks and hazards associated with them cannot be ignored.
But well, there is a solution for this, too! Maritime businessmen and traders can seek refuge with transit insurance and combat the various risks involved in marine transportation.
Let us learn about the hazards of shipping goods through the sea and how marine insurance can help.
What is Marine Insurance?
Marine insurance is a type of business insurance that protects from the losses and damages that may arise when transporting goods over the sea. Sometimes, marine insurance meaning also includes transportation through other modes, like rail, land and air.
While marine insurance saves businesses from significant financial losses, one cannot overlook the hazards involved in marine transportation. Here are some of the most common hazards of shipping goods by sea.
Hazards of Shipping Goods By Sea
Natural Calamities
Natural calamities, such as cyclones, thunderstorms, tsunamis, etc., are some of the most common sea hazards that cause damage to goods and cargo during transit. While natural perils are beyond one’s control, the best one can do is opt for security by investing in marine insurance. Most marine policies come with a cover for natural calamities, saving businesses from significant losses.
Man-Made Hazards
At times, marine losses also happen due to human negligence. Untrained or recently joined ship sailors or workers may be the reason for a disastrous situation on board, leading to damage of goods or other forms of loss. In such situations, the shield of marine insurance covers the loss of goods, vessels, etc.
Sinking of Ship
Many times, a ship or vessel may sink due to overloading, the occurrence of a storm, or other reasons. When a ship sinks, it causes damage to goods, people, and the infrastructure on the vessel. While such a loss can be a huge one, transit insurance minimises it by covering damage due to sinking, capsizing, flooding and other insured perils.
Collision with Another Vessel
Poor visibility or rough weather conditions often cause collisions between ships, which damage the vessel, the goods and the people on board. However, one can opt for a marine policy that covers collision damages.
Piracy Attacks
Piracy attacks are one of the major challenges of the maritime business. Piracy incidents often involve the stealing of cargo, hijacking vessels, and even demanding a ransom. Marine insurance coverage may cover all such incidents, bringing relief to the vessel and cargo owners.
Technological Shortcomings
Sometimes, unpleasant incidents may also take place due to some technical glitch in the vessel. For instance, the vessel’s motor or engineering equipment may become faulty, leading to mishaps.
At times, the ship may leak oil into sea or the propellers may become faulty, which may cause damage or loss. It is best to have a marine insurance plan in place to combat these damages and minimise the loss.
How Marine Insurance Helps
Mitigates Financial Losses
Marine insurance provides financial assistance to the policyholder if the insured property or cargo suffers any loss due to the covered perils. Thus, it safeguards the insured against incurring financial losses.
Cargo Loss/Damage
You also get coverage for cargo loss or damage, which may take place due to man-made or natural disasters, such as cyclones, ship sinking, piracy, mishandling, etc. Marine insurance provides you with extensive compensation for the value of damaged goods as per the policy.
Third-Party Liability Cover
An accident or collision in the sea may cause third-party damages, and you may have to pay them compensation. In such cases, the ship owner may have to bear huge expenses out of his pocket. However, many marine policies offer coverage for third-party liabilities, saving the insured from unnecessary expenses.
Tailored Coverage
Marine transit insurance can be customised to suit your requirements, such as cargo value, shipping route, type of goods, and so on. Thus, your business gets the exact coverage and protection it requires.
Opt for TATA AIG Marine Insurance for Excellent Coverage
While the hazards of shipping goods through the sea cannot be controlled, you can definitely minimise the loss with the help of marine insurance. If you are looking for wide coverage, affordable, and efficient marine insurance plans, TATA AIG’s plans are the best fit.
They offer customised coverage options based on your business requirements. From commercial shipping vehicles to port authorities and passenger vessels, they offer coverage to various parties involved in the shipping business. You can get protection for transit, delivery delay, pollution hazard, collision liability and many such instances.
So, secure your business with the right insurance plan to ensure business continuity.