Marine Cargo Insurance

Posted in Finance, Accounting and Economics Terms, Total Reads: 106
Advertisements

Definition: Marine Cargo Insurance

Marine Cargo Insurance suggests-"Insurance of the cargo that are being moved from one place to another". This Insurance/law came into being via Marine Insurance Act of 1960(MIA).

We can get confused by the word "Marine" which could mean the property that are transported by sea/ocean will come under this law, but this not actually true ,Marine Insurance Act covers damage to the property via Road, Air or Rail even, because mostly it is not like that once you put down the cargo from vessel onto a port ,the job is done. The Cargo/Shipment needs to be delivered at someplace else which would require further means of transport such as Rail, Road and Air because we cannot have water connectivity everywhere hence Marine Insurance Act has the provision for Road, Rail and Air as well.

What Kind of Damages covered?

In specific words these damages are termed as "Maritime Perils" which include disasters such as sinking of the ship, standing, collision, fire, Pirates attacking and many such disasters.

What are not covered?

Many things are not covered under Insurance they can be Late arrival of vessel due to the reason which do not cover the above mentioned reasons. If the ship is being arrested, Bill of lading that is provided in incorrect and many more. Under these cases Insurance Company doesn't cover the losses and concerned party have to bear the cost.

Advertisements



Looking for Similar Definitions & Concepts, Search Business Concepts


Similar Definitions from same Category: