Attending some training is so beneficial and I had the opportunity to attend one. These are some of the notes I scribbled from a training by Lydia Muirigi. This post has been made with her knowledge but I wanted to appreciate her to sharing her expertise in this field. Below is what I got. In the coming few weeks, I will be sharing more on this type of insurance. I will get more material to help you sell insurance, import your goods safely and help the country grow the premiums generated from this neglected income stream.
Marine insurance is insurance taken to a cover perils of the sea. This means that when cargo is transported from on point (say manufacturer in shanghai, china) to the destination point (Kampala,Uganda). there are realities that the cargo may not reach the destination due to various circumstances. Marine insurance is therefore taken to compensate importers and exporters.
Marine insurance is UNIVERSAL for all. Whether you take insurance locally or abroad, it’s the same.
This insurance is regarded as the mother of all classes of insurance that exist in the modern day and it covers both transport by air and by sea. So for importers using air transport, marine insurance is what the cover that they need.
Marine insurance is divided into two broad categories.
Marine Cargo insurance:
This includes voyage policies. Voyage policies cover a single voyage. This means that cargo will be insured from the port of loading to final warehouse somewhere in Juba South Sudan. The moment cargo reaches the final warehouse, the insurance ceases.
Marine open covers are given to regular importers who only need to declare when they are importing goods. It’s an agreement between the insurer and importer to provide insurance for each conveyance. Upon declaration, the insured pays a premium on pre-agreed terms and then the goods will be on the cover. The trainer used the word umbrella cover.
Marine Hull insurance:
This covers the ship or the vessel during a maritime adventure. Here vessels can take a voyage policy mostly in cases where it is on its final voyage either to be scrapped or repaired. Otherwise, time policies are issued for marine hull insurance. Time policy will be given for a particular period of time
It is important to note that marine insurance is issued mostly on voyage basis because goods only take one trip from the manufacturer to the final warehouse to be distributed.