What Are the Fundamentals of Marine Cargo Insurance
Summary-
Whether you purchase marine cargo insurance, hull insurance, or any other kind of marine insurance policy, the doctrines are the same for all. These are in a position to deter misuse and protect policyholders’ interests.
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Marine insurance companies are concerned with overseas trade. There is a trade, which implicates the transformation from one place to another by ships. Now, this method of transshipment of goods from one place to another has its fair stake of dangers.
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Whether you own a ship or ship for any commercial or any vehicle purpose, a marine cargo insurance policy will safeguard you from every marine-related risk.
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Every marine cargo insurance policy counts on the principle of good faith, and marine insurance is no dissimilar. Under this principle, it’s acknowledged that the individual/organization buying this policy will fill up the facts accurately and not withhold any information.
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2. Insurable Interest
According to this principle, you must have an insurable interest in purchasing the policy. It means you should get some advantages from the safe coming of goods. If there’s a lack of insurable interest, the insurer can reject policy issuance.
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3. Indemnity
This principle expresses that you will get paid only to the extent of the loss suffered. It tells that the claim payment will not transcend the actual losses suffered. So, you may buy a marine cargo insurance policy not to achieve earnings but to defend yourself financially in case of a casualty.
4. Subrogation
The principle of subrogation closely obeys the principle of indemnity. Under this principle, you can’t earn any profits from the incurred loss. Let’s apprehend it with an instance. Suppose your goods in transit are burnt, and you suffer casualties worth Rs. 50,000.
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5. Loss Minimization
Buying a marine insurance policy doesn’t provide you with the license to act irresponsibly. You must take all the essential steps to minimize losses and safeguard your goods.
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Marine insurance is a fact that helps with alleviating the dangers of financial misfortune to the property, for instance, merchandise, ship, or other movables, in the oceanic automobile, on the installment of premium by the certified insurance provider. So, purchase marine cargo insurance from Global Insurance for protecting yourself from such mishaps.