6 Reasons Why You Need To Buy Marine Insurance In KenyaMarine Insurance-
We all see a number of ads, announcements etc to have insurance. Most of us buy car insurance as it’s a mandatory policy and even opt for other insurance types like car insurance, home insurance etc but when it comes to marine insurance why don’t we understand that marine cargo insurance cover in Kenya is essential when it comes to shipping freight internationally by sea.
A Marine Insurance Policy includes goods to be shipped not only via sea, but also shipment via air, land, rail or other conveyance—including international, domestic or inland transit, warehouse coverage and much more.
To ensure a secure and safe transportation by different modes, it is essential to insure your goods with a maritime insurance.
High costs following a loss
The cost of losses that may arise from physical damage to goods in the event of an accident during transit can run into hundreds of thousands of shillings. Therefore, spending some money on buying Marine cargo cover will protect a business from these costs.
The marine cargo cover is often a commercial requirement
A marine insurance helps you by covering the loss or damage of ships, cargo, terminals, and any transport by sea arising due to different kinds of perils like-
- Natural Calamities like Cyclone, Tsunami or Earthquake
- Loss due to theft, fire, explosion etc.
- Collision, overturning or derailment of land conveyance
- Sinking or stranding of ships
- Expenses such as survey fees, forwarding costs, and reconditioning costs
- Total loss of any package while loading or unloading from vessel or craft
Thus, if there are any goods or sales financed by a bank or on a loan, need a proof of marine cargo insurance. Not insuring the goods may place unnecessary strain on commercial relationships.
Marine cargo policies are assignable
As the marine insurance policy typically covers the entire journey of the goods, the benefit of the policy is assignable. The merchant can assign the policy to the buyer of the goods when the buyer becomes the legal owner during the journey. Now the owner can easily claim the cover if any mishap takes place in between the transit.
Enjoy the benefits of Marine Cover Worldwide
The goods in transit policy typically cover the goods whilst in transit within Kenya whereas a marine cargo policy can cover transits worldwide via any means of transport, giving true warehouse to warehouse cover.
This is one of the biggest advantages that the merchant needs not to worry about the loss. The marine insurance cover is wider than a traditional “Goods In Transit Policy” cover as it will typically cover goods against a wider range of perils.
In a comprehensive policy or a traditional cargo policy, the loss or damage to the goods due to war and terrorism are covered as standard. So, you don’t need to include it as an add-on to your policy.
Under a marine cargo policy, goods are protected even whilst in the storehouse. This means it can provide cover for goods before and after transit whilst being kept in a warehouse or any other storage facility.
Annual or single trip cover
Purchasing marine insurance is different from other insurance categories. You do not have to buy it annually. If the cover is only required for a one-off trip, one doesn’t need to purchase an annual marine cargo policy. The specific transit insurance policy provides cover for a single trip.
Cover ceases to apply as soon as the cargo arrives at its destination. The policy is ideal for business owners who send out cargo items infrequently. Thus, a business can opt for a single trip policy which means you will only get the coverage required and only when it is needed.