May 13, 2024

Marine Insurance Myths Debunked By Experts

Cargo insurance is only for big shipments. Marine insurance covers all risks comprehensively and coordinating with a cargo insurance company is a heavy task. All these are myths about marine insurance.

While putting your shipment at risk, these myths and misconceptions around transit insurance can prevent you from enjoying all the advantages of marine insurance. We got our experts to debunk the most common myths about marine cargo insurance.

Myth about cargo insurance

Myth 1: Only Large Shipments Need Marine Insurance

Expert Insight:

A common myth about cargo insurance is that small shipments don’t need it, and only precious cargo requires safeguarding. Experts in the maritime insurance industry emphasise that the shipment size doesn’t correlate with the level of risk involved.

Even small parcels or packages can be exposed to hazards such as rough weather, accidents, theft, or vessel sinking, ultimately resulting in financial loss. Likewise, Forwarders and Customs House Agents must tap into the cargo insurance opportunities for both, large and small shipments.

Myth 2:  Cargo Insurance Coverage Only Apply To Goods on Water

Expert Insight:

Marine insurance isn’t confined to goods shipped solely by sea; it encompasses goods transported via various modes such as air or land.

If you want to send your fabric shipment to the USA, for instance, it’s crucial to insure goods from their starting point to their destination, regardless of the mode of transport. Risks to cargo stand at each point of the transit and you must be prepared against it.

Myth 3: All Risks are Covered by Default

Expert Insight:

While marine insurance provides coverage for various risks associated with the transportation of goods over water, it doesn’t cover every possible scenario. Every policy has its limits and exclusions, depending on the terms and conditions of the policy.

Exclusions such as acts of terrorism, war risks, and pre-existing damage to cargo or vessels are commonly found in marine insurance policies. Shippers should carefully review their insurance policies to understand the extent of coverage provided.

Myth 4: Cargo Insurances Are Too Complicated and Time Consuming

Expert Insight:

Traditionally marine insurance process was done on paper, making it complicated and overly time-consuming. But with insurance digitalisation, online portals like Aapka Transit are making buying marine insurance smooth, error-free, easy and quick.

Now Forwarders and insurance agents can buy insurance from reputed cargo insurance companies in India within 3 minutes and your cargo is ready to be shipped. Developed with an easy-to-interact dashboard and secured technology, the Aapka Transit marine insurance portal simplifies your cargo insurance experience.

Aapka Transit simplifies the process of obtaining marine insurance, offering an intuitive online platform for transparency, trust, security and efficiency. We provide a convenient avenue for shippers to secure comprehensive coverage tailored to their needs, offering peace of mind throughout their maritime ventures.

Sail to cargo security with Aapka Transit. Start your journey today.