Tag: marine cargo insurance

Clearing the Waters: Guide to Trade Contracts and Marine Cargo Insurance

In the sea of Trade Contracts and Marine Cargo Insurance, finding the one that suits your needs the best is a challenging task. Especially when shipping items across borders in a hurry. Let’s break down the basics and make it easy.

Aapka Transit is here to talk about trade contracts like Ex-works, CNF/Fob/C&F, CIF/CIP, DAP/DDP, and different cargo insurance types, giving you a helpful guide for global business.

Understanding Marine Cargo Insurance Policies

Popular Trade Contracts

Although there are numerous trade contracts issued by the International Chamber Of Commerce, Aapka Transit has listed the most popular Trade Contracts to make your search easy:

1. Ex-works:

In an Ex-works arrangement, the seller delivers the goods at their premises, and the buyer bears all transportation costs and risks. This trade contract places the maximum responsibility on the buyer.

2. CNF/Fob/C&F:

These terms, Cost and Freight (CNF/ C&F), and Free on Board (Fob), dictate the point at which the risk and responsibility shift from the seller to the buyer. CNF and C&F include transportation costs, while Fob requires the buyer to bear these costs.

3. CIF/CIP:

Cost, Insurance, and Freight (CIF) and Carriage and Insurance Paid To (CIP) include insurance costs in addition to transportation costs. The seller arranges insurance coverage for the buyer’s benefit, ensuring added protection during transit.

4. DAP/DDP:

These two terms Delivered at Place (DAP) and Delivered Duty Paid (DDP) place the maximum responsibility on the seller. In DAP, the seller delivers goods to a specified destination, while DDP includes all duties and taxes paid by the seller.

Understanding Marine Cargo Insurance Policies

1. Specific Transit Policy:

This policy provides coverage for a specific shipment from one point to another. It is customised for businesses with infrequent shipments and offers a focused and cost-effective solution.

2. Open Marine Policy:

An open marine policy provides continuous coverage for all shipments within a specified period. It offers flexibility for businesses with frequent shipments, eliminating the need to purchase separate policies for each consignment.

3. Sales Turnover Policy (Stop):

Geared towards businesses with regular shipments, the sales turnover policy (stop) provides coverage based on the insured’s annual sales turnover. This comprehensive policy adapts to the evolving needs of growing enterprises.

4. Bulk Cargo Policy:

Designed for businesses dealing with bulk shipments, this policy provides coverage for large quantities of homogeneous goods. It ensures efficient and cost-effective protection for businesses involved in bulk cargo transport.

Running a global business does not have to be difficult. Understand the complexities of trade contracts and cargo coverage with Aapka Transit.

Whether you choose Ex-works or CIF, specialized transit rules, or open maritime policies, our platform allows you to easily align options with your specific business needs in just 3 minutes. Ready to set sail? Make informed decisions and confidently journey international commerce waters with Aapka Transit.

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How to Find the Best Online Marine Cargo Insurance Deals

Positioned to reach USD 50.5 Billion by 2032, the marine cargo insurance market is no less than a vast ocean in itself. With so many options available online, finding reliable and suiting marine insurance deals will surely test your waters.

Without the right and comprehensive understanding, you may end up lost and in loss. Worry not, this blog by Aapka Transit will act as the lighthouse, bringing you safely closer to the right online marine cargo insurance deals.

Online Marine Cargo Insurance

Decoding the Basics of Marine Insurance

What is marine cargo insurance exactly? Marine insurance provides coverage for vessels, cargoes, and marine-related liabilities.

It’s a specialised form of insurance that covers the loss or damage of ships, cargo, and terminals by which any cargo is moved or held anywhere between two points.

Things to Consider While Buying Marine Insurance

Right from the cargo insurance type to coverage limits and loss settlement, there are many things to consider while finding your match for Marine cargo insurance deals. Here are our key takeaways to keep in mind-

1. Access Your Marine Insurance Needs

The first step in securing the best online marine insurance is to conduct a thorough assessment of your needs. Evaluate the vessel type, its purpose, and the waters it navigates. Different vessels may require different types of coverage, such as hull insurance, or specialised coverage for specific equipment.

Ask, how much insurance do you need? This can be based on the estimated value of all the assets or the financial impact of the risk. This will guide you in selecting the right value and type of marine insurance.

2. Compare Different Coverage Options

When comparing different coverage options, consider every tiny detail, including premium value, coverage types, claim process, terms and conditions, policy limits and other elements. Also, inquire about policy specifics like the deductibles (the amount you must pay out of pocket before the insurance coverage kicks in) and exclusions involved.

While analyzing different marine insurance deals, also pay keen attention to the reputation of the provider as well.

3. Fish Out for Discounts and Savings

Make the most of your marine cargo insurance with discounts and savings. The availability and amount of discounts will vary among insurers, and it’s essential to inquire about potential discounts when obtaining quotes.

4. Leverage Online Tools for Comparison

Get ahead with online marine insurance portals and comparison tools. Portals, like Aapka Transit eases up your search for a befitting marine cargo insurance deal with a quick, secure, easy and transparent setup.

Get quotes, understand policy specifications, and find marine caro
insurance deals tailored to your needs with a team of the most trustable and knowledgeable insurance experts.

What more? Effectively save money, time, and effort.

Weighing the Anchor: Conclusion

With these considerations in mind, you are all equipped to navigate the world of marine cargo insurance. Aapka Transit gets you the best deal in terms of price and the peace of mind that comes with knowing your vessel is adequately protected on its maritime adventures. Head to our site, to get quotes today.

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What is Marine Cargo Insurance and How Does It Work?

Marine Cargo Insurance

In a world where interconnectedness is giving rise to new business opportunities that are shaping the infrastructure for industry 4.O. The channels of modern-day businesses are spread across roads, rail, water, and air. Despite the swift advancements in technology in various sectors, the inherent risks associated with transporting goods persist. Unfortunately, risks like natural calamities, fire, theft, strikes, war, and other unforeseen circumstances have risen considerably along with an increase in inter- and intra-border transportation.

In such circumstances, cargo insurance is the only solution to safeguard the risk associated with the transit of goods. Usually, things like insurance are dealt with after all the necessary tasks are done. To some extent, this is practical for business because it’s hard to estimate accurately until your goods are ready to be dispatched.

The matter of concern starts when most businesses start to rely on shipping or other third-party agents for their insurance needs. While there’s nothing inherently wrong with this approach, it’s crucial to select the correct and knowledgeable subject matter expert who can thoroughly review all the terms and conditions to ensure that, when there is a loss, the settlement of a claim is just and fair.

A marine cargo insurance agreement is an agreement between the cargo owners and the insurance company. It is an agreement transferring the risk of damage to cargo to the insurance company in case of unforeseen circumstances.

This ensures two major benefits:

  • Expert technical support from the insurance company during the time of loss or damage.
  • A seamless trade experience every time.

Marine cargo insurance covers transit from point to point, depending on the nature of the trade contract between buyer and seller.

Few of the popular trade contracts are.

  1. Ex-works
  2. CNF / Fob / C&F
  3. CIF / CIP
  4. DAP / DDP etc.

Coverage under marine cargo insurance:

The type of coverage provided by the insurance company depends on the nature of the cargo, type of packaging, and mode of transport. The insurance umbrella consists of various types of coverage; therefore, it is always suggested to plan before purchasing a cargo insurance policy. Below are the three major coverages provided by the insurance company.

ICC C – BASIC STANDARD CARGO COVER AGAINST MAJOR CASUALTIES
ICC B – WIDER INTERMEDIATE FORM OF COVER
ICC A – BROADEST COVER ON AN ALL-RISK BASIS WITH EXCEPTIONS

MARINE CARGO INSURANCE POLICY EXCLUSION:

THE INSTITUTE CLAUSES RETAIN GENERAL EXCLUSIONS UNDER ALL THREE COVERAGES SUBJECT TO SPECIFIC ADD-ON COVERAGES MENTIONED IN THE POLICY.

Types of marine cargo insurance policies:

  1. Specific transit policy
  2. Open marine policy
  3. Sales turnover policy (stop)
  4. Bulk cargo policy

Important factors for the smooth functioning of Marine Cargo Insurance:

Mode of Transportation: An importer or exporter will usually choose water or airways for delivering the cargo, whereas businesses that trade locally will go by road or railway. Therefore, defining the means of your transportation gets you going in advance.

Route of Shipment: The destination of your consignment and geographic path truly define the kind of risk associated with your cargo. Routes through war zones or pirate waters increase exposure to multi-dimensional risk. Longer ocean voyages face more perils than short hauls. All these factors are taken into consideration by the insurer while structuring appropriate policy terms and conditions.

Valuation of Goods: The marine cargo insurance is declared a value policy. Generally, the value declared under the invoice is considered for the calculation of the premium plus duty component, if any, on an actual basis. Underinsurance or over insurance is considered, if any, at the time of loss.

Claims Handling and Documentation: The insurance company requires prompt notice and documentation for cargo loss claims. Submitting proof like survey reports, invoices, freight receipts, and custom forms is the key. Thorough paperwork and responses from the insured will facilitate a fair and timely claim settlement.

Reputation: The insurer’s reputation and financial strength are critical for their business. Large losses can strain the insured. A history of fair claim settlement matters the most. Pick an insurer known for managing losses promptly.

All these factors play a major role in the basic functioning of Marine Cargo Insurance. Before insuring your goods directly or through your agent, always remember to primarily check all these factors.

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