What is marine insurance?

Marine insurance protects customers against damage to marine cargo, theft, loss, natural disasters, etc.

Many insurance contracts have strict underwriting procedures, but marine insurance is more flexible. Most of these policies are offered as all-risk protection and can be tailored to each customer. Here are some situations where marine insurance comes in handy.

Goods transported by sea sometimes encounter unforeseen risks. Photo: Global Track Lines

Damaged goods

International shipping is generally safe and efficient, but there are many reasons why goods can be damaged during transit. Marine insurance can protect customers in the event of damage.

Theft

Cargo theft at sea is not uncommon. Those who commit this act are using advanced techniques to illegally obtain goods. Without insurance, stolen goods can cause losses to the businesses and individuals involved.

Lost goods

Large ships carrying many containers of goods are at high risk of being lost, especially in extreme weather conditions. With the rate of lost goods increasing sharply over the past 10 years, customers need to consider the possibility of goods being lost during transit.

Natural disasters, unexpected events

Catastrophic events such as storms, shipwrecks and fires can cause shipments to be lost, damaged or blocked. According to the World Shipping Council, all containers lost in 2017 were due to unforeseen events. Cargo insurance can protect customers from the costs required to recover from these risks.

International shipping laws benefit the carrier, not the sender or receiver. Limiting the carrier's liability helps promote trade between countries. When you prepare to ship, make sure the goods are packaged as carefully as possible to minimize risks.

Customers must declare truthful information to the insurance company about: type of goods, value, storage conditions... After declaring, the insurance company has the right to accept or refuse insurance for the customer.

In addition, being able to control marine insurance also gives customers more peace of mind. The contents of marine insurance can be complicated, but customers need to understand clearly to achieve maximum benefits. With the right protection, you can confidently transport goods by sea. Any potential damage, loss or disruption will be financially covered with insurance.

Thanh Thu (according to CH Robinson)