What are the 3 significant types of insurance that are involved in marine insurance?

What are the 3 significant types of insurance that are involved in marine insurance?

Marine Container Insurance

Risks do exist. Any international trade operation involving the movement of goods is subject to incidents that are impossible to anticipate at the planning stage. That is precisely why cargo insurance exists.

Do you know what types of insurance for international transport exist? Are insurance policies compulsory for export or import? What does cargo insurance cover? These and other answers, below.

However, there are contingencies that are impossible to anticipate. This is the value of merchandise insurance policies, a consensual contract that guarantees merchandise coverage in a series of cases that fall outside the provisions of the law.

There is mandatory coverage regulated by law to cover certain liabilities. However, you must bear in mind that the higher the value of the cargo, the higher the risk; therefore, the more important it is to take out merchandise insurance.

Cargo insurance policies in international transportation range from liability coverage to protection of the professionals who handle the cargo transfer, the owners of the goods and the people who participate as assistants in the transportation services.

Types of insurance in international trade

The great merchants had to transport their goods by sea, specifically through the Mediterranean, which is why this protection was developed around 1,400 A.D. in what is now England:

The insurance contract consists of a policy in which the terms stipulated between the parties are specified, whereby the insurer undertakes to indemnify the insured with a certain amount depending on the premium paid, if the protected event materializes.

Read more  What is RTA claims?

It is the document containing the rights and obligations of the contracting parties. It includes all those documents necessary for the issuance of the policy, the annexes and endorsements subsequent to its issuance, such as additional clauses of the policy: “The policy is the fundamental means of proof to verify the terms of the conditions under which it was contracted”.10 The insurance contract implies certain randomness, i.e. the insured event must be possible but uncertain during a period of time and will not depend on the action of the insured or the insurer. In general, the insured risks must be susceptible of quantification, and their realization must be subject to statistical laws, so that the premium payable can be calculated. In addition to the insured event being random, the insured must have an interest in its non-occurrence, since he would suffer a material loss if the event were to occur. If the insured did not have a personal interest in not suffering the risk, the policy would be without content and the contract would be speculative. This type of situation would occur, for example, if a person insured a third party’s house against fire.

Marine insurance policy

This complexity may be greater if we take into account other persons who, without being part of the contract, gravitate around its orbit, such as the insurance intermediary or the third party injured party of the civil liability insurance.

The main obligation of the insurer, in exchange for receiving the agreed premium, is to pay the agreed indemnity or benefit. This obligation, of a generic or abstract nature, at the time of signing the contract, becomes a certain and concrete obligation when the loss occurs.

Read more  How is injury settlement calculated?

Article 7 of the LCS tries to establish, apart from the rights and obligations of the insurer, the regime of the policyholder, the insured and the beneficiaries, thinking that they are different persons, even though these figures may coincide in the same person.

If the policyholder contracts in his own name, but on behalf of others, the duties and obligations deriving from the contract correspond to the policyholder, except for those which by their nature must be fulfilled by the insured.

Types of maritime transport insurance coverages

The different types of insurance contracts, in the absence of any applicable law, shall be governed by this Law, the provisions of which are mandatory, unless otherwise stipulated therein. Notwithstanding, the contractual clauses which are more beneficial to the insured shall be deemed valid.

The insurance contract and its modifications or additions must be formalized in writing. The insurer is obliged to deliver to the policyholder the policy or, at least, the provisional coverage document. In those types of insurance in which special provisions do not require the issuance of the policy, the insurer shall be obliged to deliver the document established therein.

The policyholder may take out the insurance on his own account or on behalf of others. In case of doubt it will be presumed that the policyholder has contracted on his own account. The third party insured may be a determined or determinable person by the procedure agreed upon by the parties.

If the policyholder and the insured are different persons, the obligations and duties deriving from the contract correspond to the policyholder, except those which by their nature must be fulfilled by the insured. However, the insurer may not refuse the performance by the insured of the obligations and duties corresponding to the policyholder.

Read more  What is transaction processing in banking?