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    All About Marine Insurance - Benefits, Documents, Processes
    Updated On: 05 Mar 2021 | 786 Views

    All About Marine Insurance - Benefits, Documents, Processes

    All About Marine Insurance - Benefits, Documents, Processes

    Marine Insurance 

    Marine insurance, unlike the name implies, does not only apply to sea/ocean transport but can be broadly classified as an insurance that covers the loss or damage of cargo, goods and any transport vehicles by which the packages are transferred and acquired between international points of origin and their final destination.

    Marine insurance covers guarantee indemnity in the event of financial losses as a result of voyage mishap like sinking or stranding of carrying vessel, piracy, water damage to goods, jettison, breakage, theft, lost merchandise, plane crash. It often consists of many exclusions, including floods, earthquakes, and natural disasters.

    Common situations that lead to loss or damage of cargo in transit can cause significant financial hardship for ship owners and transporters. 

    Marine Insurance is a smart provision to manage any unforeseen circumstances that may occur during the shipping of cargo either by air or sea. It is an agreement that provides a cover against incidents in transit that may lead to high financial risks.


    Benefits of Marine Insurance

    Marine insurance is full of several benefits for both commercial and personal shipping:

    1. Comprehensive coverage: Marine insurance has a wide coverage for protection. It covers a wide range of perils that may happen while a cargo is in transit. Examples include sinking or stranding of carrying vessels, piracy, water damage to goods, jettison, breakage, theft, lost merchandise, plane crash, etc.

    2. Claim settlement assistance: Most marine insurance providers offer claim survey assistance anywhere in the world along with claim settlement assistance. This means that an insurance company will offer support in the necessary investigation around the circumstances needed to assist you to make your claim.

    3. Flexible Plans: Marine insurance companies provide options that are designed to suit a variety of budgets for individuals and companies.


    Marine Insurance Claim Process

    The documents required are:

    1. Original insurance policy or certificate.

    2. Copy of billing lading or airway bill

    3. Survey report / missing certificate.

    4. Original invoice and packing list together with shipping specification or weight notes.

    5. Copies of correspondence exchanged with the carriers or bailees.

    6. Claim bill.

    The claim process differs slightly from one insurance company to another but here are the basic steps to make your insurance claim;

    1. Contact either the claim representative or the nearest branch of your insurance provider and inform them about the claim.

    2. In the event that the damage has occurred to the goods while they are on the ship or port, you must arrange for port or joint ship survey.

    3. Submit the original insurance policy document or certificate that was issued to you. 

    4. You will need to provide the original invoice and other documents listed above to authenticate your claim.

    5. Insurance companies will appoint a surveyor that will be required to deliver a survey report.

    6. On the basis of the survey, the insurance provider will settle your claim.


    When shipping, every consignee is advised to subscribe for an insurance that matches the invoice value of the cargo. It is better to channel all that may disturb the safe delivery of your packages and cargo with just a little percentage of your invoice than to stand at risk of losing it all.


    Valuehandlers International limited process marine insurance for importers and exporters on request. For more information, speak with our customer service representatives on 08032241768 or send a mail to info@valuehandlers.com


    About the Blogger: Valuehandlers is a freight forwarding and logistics company with deep competencies in Air cargo freight, Sea freight, Express parcel, E-commerce logistics, Import and Export documentation, door delivery and pick-up services, Customs clearing and warehousing. 

    12, Joseph Odunlami Street, Off Thomas Salako Street, Ogba Bus Stop, Ikeja, Lagos