Marine Hull Insurance
Marine Hull Insurance
When talking about marine insurance, the first thing that comes to mind is protecting the ship’s body. The soundness and perfect operation of the hull and machinery of a ship are keys to the safe transportation and delivery of any cargo or freight. That is why Marine Hull Insurance is designed to provide coverage to ship owners. In addition to this, hull insurance also covers yachts, charter boats, head boats, and hull builders’ risks.
Read on to learn how Marine Hull Insurance will cover all your business needs.
What is Marine Hull Insurance?
For all operational cargo ships and merchant vessels, marine insurance is like a security blanket. There are different types of marine insurance, and one that specifically aims to protect the vessel carrying the cargo is marine hull insurance.
Hull is the outer body of the vessel, and thus, it is an insurance policy that is designed to provide coverage for water vehicles like boats, ships, steamers, fishing boats, yachts, and more.
The hull is the main part of the ship, and damage to the hull compromises the safety of the ship. Thus, with marine hull insurance, ship owners can avoid financial loss.
Clauses Under Marine Hull Insurance
There are 3 main clauses under the marine hull insurance. They are as follows:
This includes risks associated with seas, rivers, and other navigable waters. It also includes any risk related to property loss or damage due to fire, drinking, capsizing, robbery, jettison piracy, or a natural disaster.
The FPA is the “Free of Particular Average” insurance clause and is similar to the hull coverage, except it excludes mechanical damages. It is generally offered when a ship is more than 15 years old because older vehicles are more likely to sustain damage.
Only the whole loss based on real, compromised, or constructive losses is covered by this clause. This type of policy is mostly offered to very old and huge vessels, and it comes at a reduced rate.
Benefits of Marine Hull Insurance
Some of the marine hull insurance benefits to be noticed are:
- Comprehensive Coverage
A Marine Hull insurance policy offers protection for your vessel’s hull and machinery from loss or damage caused by a variety of dangers such as fire, explosion, robbery, collision, and other ship-damaging events. - Adaptable Plan
You can buy marine hull insurance to safeguard your vessel or yacht for a specific journey or to cover your vessel for a specific period, generally 12 months, regardless of its voyages. - Coverage of Inland Vessels
A marine hull insurance policy can protect inland waterway vessels against a variety of dangers, including collisions, piracy, and the destruction of wrecks. A ship’s sinking can also be covered. - Simple Documentation
Marine Hull insurance is very simple to obtain. The agreed value, which is identical to or about the cost of the ship to be insured, also determines the sum assured for hull and machinery insurance.
Features of Marine Hull Insurance
The features of marine hull insurance that you should know as a ship-owner are:
- The dangers of navigating by sea are greater as compared to those of traveling by land or air. The ship can be destroyed, lost, or sunk as a result of a fire, robbery, or collision, and the financial loss due to this can be ruinous because marine vehicles are very expensive. Yacht and other pleasure boat owners are always in great danger because their vessels are expensive and don’t generate any profit.
Marine Hull insurance can be purchased for a specific period. It means you have the option of insuring your ship or yacht for each voyage or buying a comprehensive plan that covers your vessel for a set period.
- The sum assured in marine insurance is not a fixed amount, but rather a value agreed upon by the insurer and the insured. It is generally equal to or close to the vessel’s cost. The amount of premium given to the insurance company is determined by various factors, such as:
Type of vessel:
- The vessel’s age (which is based on the number of years it has been in service)
- The cost of the vessel is as per its valuation.
- The vessel’s tonnage duty and trade limits.
- The vessel’s ownership terms.
- Type of insurance coverage the vessel requires.
What Does Marine Hull Insurance Cover?
Marine Hull Insurance covers all accidental loss or damage to boats used for commercial purposes. Coverage under Marine Hull Insurance includes:
- Vessels insurance
This covers all accidental loss or damage to the vessel within the agreed navigational limits set by the policy. A valuation and survey of the vessel is usually needed for this insurance, which is set at an agreed value. Liability Insurance
The liability can be included as an extension to the hull insurance or can be taken as stand-alone cover. The limits chosen for liability can vary based on vessel type, use, or territorial limits.- Ship Repair Cost
The insurance also covers the legal liability that ship repairers face for loss or damage occurring while a vessel or craft is in their care, custody, or control. It also applies when a vessel is being moved within the port limits and work is done by a specialist repairer. - Ship Builder’s Risk
It protects the vessel under construction, and the cover is provided against risks of physical loss or physical damage. It also allows for sea trials and liabilities arising out of the build.
What is Not Covered Under Marine Hull Insurance?
Marine Hull Insurance is an all-inclusive policy, but certain cases fall outside of its coverage list. The cases are:
- Normal wear and tear of the hull machinery
- Damage is done due to nuclear activity
- Radioactive contamination
- If damage is done by the crew members under the influence of alcohol.
- Intentional damage to the vessel
- If damage is done to the vessel due to any terrorist activity.
- Sailing the vessel in a sea storm even after the issuance of a warning.
- Overloading of goods.
Please note that this list can have some additions/omissions depending on different insurance providers.
To Sum Up,
Any shipping company that operates through water bodies can face a huge loss if the ship is damaged due to a collision with other boats or sinks. Also, in times when the discarded fishing net gets stuck in the underwater turboprop blades, the ship has to go into repair. These incidents can increase the cost of operations and repairs and can also result in a loss of revenue due to the cessation of the ship’s operations. To recover such financial losses, marine hull insurance is a must for firms to make sure their vessels are operational and protected at all times.
However, there are various marine hull insurance providing companies in the market, making it hard for the customer to choose one. Thus, Policy Wings will do the job for you and help you avail of the best marine hull insurance policy in India.
Frequently Asked Questions
Yes, the ships can be damaged at any time. There are examples where a vessel was destroyed while docked at a port and was not even sold. If the owner works without any insurance in such situations, he/she will certainly face a significant financial loss.
The term “loss of hire” refers to business owners who rent out their ships. If the ship is damaged for reasons that are not covered in the policy and are also unable to be hired, then the insurance company will cover the loss of income until the damage is repaired properly.
Yes, a degree of protection and indemnity (P&I) cover is provided following the terms of your hull and machinery insurance cover. In addition, some insurance policies also offer full P&I insurance, with liability for cargo, crew, and pollution.
Latest Blogs
There is uncertainty at every step of the way in our lives. Now more than ever, Life insurance is a need. We have been able to cope and manage the stressors of life in various ways, and one of them is having a back up plan. You need a back up plan for your life as well, to ensure that the people you leave behind are cared for and safe. Life insurance policies provide full proof insurance of financial support in case of sudden demise of family members. Life insurance proves to be a safety net to save you from the hit your family and loved ones might take in case of death or disability of a family member. Life insurance not only covers the above stated, but also unforeseen circumstances like critical illness or permanent disability. When you’re insured you are assured that there will always be a shoulder to support your family, and that will be your insurer! There are few things life insurance helps us achieve, that is, protection of the family, investment for your future financial goals and most of all savings for your retirement plans and more. What is life insurance? It is a legally binding contract that promises benefit to the policy owner in case the insured person dies. The beneficiaries of the life insurance policy get the benefit, the insured sum, subsequent to the death of the person insured. It is structurally pretty easy to get a hold of. There is an assured amount that you pay to your insurer , a minimum basic amount you pay to get your life insurance policy started off. Now on that you pay the premium monthly or quarterly or annually depending on the type of insurance you have opted for. However there are some contingencies to keep in mind so that you know what you’re getting into. Firstly, life insurance depends on a few factors like age, gender, smoking habits, and the policy term. All of these factors your insurance premium amount varies according to the plausibility and probability of any unfortunate event happening. At the very basics, life insurance can be specified into two main classifications- term life insurance and whole life insurance. Apart from those two categories there are also- endowment plans, unit linked insurance plans, child plans, pension plans. Term insurance It is an insurance policy designed to last a certain number of years and then come to term and end. Usually the common terms are 10 years or 20 or 30 years. Term life insurance is a great tool to improve your financial stability as it gives a return at the end of the tenure. There are different types of term insurance as well. Increasing term life insurance helps your insurance as well as premium amount grow and is a great tool for investment purposes. Level term stays constant throughout the term, including your premium as well as assured amount Decreasing terms makes assured amounts of money decrease over time however the premium you pay remains constant. Whole life insurance This is probably the best policy to go for if you’re looking for the actual purpose of life insurance, meaning safety and coverage of your loved ones financial stability after you. You are required to pay the premium throughout your life starting at the time you started the policy. There are a few types of whole insurance as well ULIPs : These are different from the traditional whole life insurance but useful nonetheless, the premium amount you pay throughout your life is used for two things within this policy, mainly: firstly your savings and secondly investment in the market for the amount to grow. The traditional plan: when your policy reaches the end, you get its promised benefits These plans can be further divided into non-participating and participating categories. In the former case, the insured does not get any bonuses or dividends from the corporation. Benefits can be taken in one lump sum or as recurring payments. Endowment policy Within this plan if the insured person lives through the maturity period they get an added bonus or benefit. Just like the whole life insurance policies they can also be participating and non participating but here in you can get the benefits of investment in the market like ULIPs Money back policy This is probably on the more expensive side, however still absolutely worth is as the beneficiaries get the exact amount that you have invested in the policy Child care policies You can think of this policy like a safety net for your child. It helps you save for the future and provides the usual coverage, however they can be like endowment plans or UILPs the added advantage is that there is no bar on the age limit RETIREMENT PLANS This plan is , as the name suggests, a retirement plan. In such an economy and with the financial uncertainty we live with, it is only a valid concern that our old age shall be comfortable years to live through. These plans somewhat work like a pension, the policies you have invested in, their benefits you reap as monthly payouts to you after your retirement. These benefits can also be transferred to the nominee of your policy.
...We are always a bit unsure of what to invest in and what not to invest in, or how to go about doing exactly that. Credit this factor to the lack of awareness and knowledge or general uncertainty, irrespective, we are here to provide you with a clear view of how to manage such a situation, and how to go about choosing and investing in your very own life insurance policy. There are multiple coverage options for life insurance and choosing the right one for you is a task, come lets make it easier for you! But first let us look at what are the benefits of investing in an insurance policy. Since we already know life insurance policy is a great tool for investment, not only because it provides a range of options where you can choose what to do with your investec money, but also that it’s a burden off your shoulder once you’ve opted for it. They provide you with the financial coverage if you go through a terminal illness Since they’re long term you do not have to worry about choosing what to invest in constantly so you can live your precious years worry free. They obviously act as a money doubling strategy where as you grow your money grows with you. As the name suggests, not only you but your loved one reap the benefits later on as these plans reach maturity. Life policies are not taxable, so you get tax free financial returns and benefit These policies make up for lost time and income and provide help with end of life care. Now we have made it pretty clear why investing in a life insurance plan is logically and financially the wisest decision you can make. But these benefits only reach you once you decide and with a little leap of faith- and money. Step 1 Your first step should be to research the ideal insurance company you want to go for. Policywings provides an overview on the types of insurance policies as well, once you have a clearer picture of what kind of benefits you want to reap based on your age and number of members in the family, we move on to the next step. Step 2 Platforms like Policywings and policybazaar give you a clear picture with respect to various companies and their insurances, of different coverage amounts. Usually life insurance company have a detailed description of how your investment plan will work, and what percentage of the money you invest will reap you what percentage of benefits. Now choosing the right option is your decision to make. Step 3 A comparative analysis of the life insurance policy is essential, such platforms will also do that for you. It will give you a comparative analysis and all you have to do is look at other companies’ plans, and decide. Not just life insurance policy but life advice- keep your options open! Step 4 Now once you have chosen for a specific plan, you can go ahead and put all the necessary information the company asks you, birth date, gender, contact, nominee names and details, beneficiary names and details, aadhar details etc. Step 5 Lastly you make the payment online through net banking or whatever payment method you choose. Consequently you will receive the policy document on your registered email address. This document is extremely essential so keep it safe! Alternatively, there are other methods to go about buying a life insurance policy like you can go about it through a policy agent, or most banks offer life insurance policies as well, so talk to your banker just in case you discover new developments or improved plans. Always make sure to be thoroughly decisive and don’t be afraid to reach out to the company’s customer service providers in case you find yourself at an impasse.
...