Importance of Marine Insurance
Marine insurance coverage is important since it allows ship owners and carriers to be sure of claiming losses, especially when considering the form of transportation used. Of the four modes of transportation – road, rail, air, and water, water causes the most concern to transporters, not only because of natural occurrences that have the potential to harm the cargo and the vessel but also because of other incidents and attributes that could cause a huge loss in the transporter’s and the shipping corporation’s financial casket.
Another crucial element of having marine insurance is that a transporter may customise the insurance plan based on the size of his ship, the routes that his boat travels to transfer the goods, and many other little details that can have a significant impact on the transporter. When dealing with the scope and range of marine insurance, a ship’s captain must adhere to strict procedures in terms of the route used and the time required for the cargo and the vessel to arrive at the planned destination port. As a result, it is critical that a ship’s captain follows the established routes in order to avoid a failed insurance contract owing to an unfortunate loss caused by a deviation in the route. This would enhance the captain’s caution and reduce the risk of losing important insurance claims due to inadvertence and negligence. For Example, a ship colliding with a rock or being attacked by enemies, the risk of having commodities stolen, etc.