Why is it important to get Marine insurance?
Marine cargo Insurance is the insurance of property as it moves from A to B. Many transits – particularly international ones – require two or more types of transport and the Act makes provision for them.
Whilst the word ‘marine’ conjures up the sea transits, marine insurance departments insure property conveyed by aircraft and road and rail vehicles as well. Under the Marine Insurance Act 1906 (MIA), in it’s opening sections, it refers to ‘marine losses’, the ‘marine adventure’ and to ‘maritime perils’, and whilst the Act does not specifically mention air travel nor pure land-based transits, it is usual to see a clause in the policy document confirming its authority in all circumstances involving all modes of transit.
So, marine cargo insurance is a class of property insurance that insures property while in transit against loss or damage arising from perils associated with the navigation of the sea, air and subsequent land and in-land waterways.
‘Maritime perils’ means perils consequent on or incidental to the carriage of property by sea. It includes perils of the sea (sinking, stranding, collision etc.), fire, war perils, pirates, thieves, capture, jettison and washing overboard and ‘…any other perils either of a like kind or which may be designated by the policy.’ This last sentence allows insurers to include at their discretion in their policies other risks, for example risks appropriate to other means of transport, like crashing, derailment and overturning.