Product Movement Insurance or Marine Insurance – Description
Shipment of your products and goods is known as Marine Insurance. It does not matter if the mode of transport is sea, air, land or post – it is Marine Insurance.
It is the oldest known form of insurance known to modern man. The most ancient records show that more than 4,000 years ago, Chinese merchants would spread their cargo amongst other traders so that they could cross the Yangtze river. Imagine 10 traders, with 10 boats, each carrying 1/10th of each trader’s cargo. If one boat went down, the traders still had 90% of their cargo intact.
So much for history, Product Movement Insurance or Marine Insurance can be quite complicated, because the insurance companies have to follow World Protocols so that claims will be dealt with on a common basis. Out of interest, the next known ‘western; insurance came after the Great Fire of London in the 1600s and Lloyds of London followed in the coffee houses soon after.
There are many hundreds of clauses that effect the style of Product Movement Insurance or Marine Insurance cover available to you. It is a minefield of jargon and problems. You should consult a competent broker with good marine knowledge so that your policy will respond to any claim that you have.
Remember, Marine insurance is a difficult area of Insurance and not as straight forward as commercial insurance. It takes an experienced broker with Marine Insurance knowledge to negotiate on client behalf so that the correct policy is put in place.
Contact us for professional advice for Marine Insurance firstname.lastname@example.org.
Marine Insurance Policy Coverage Types
· Commercial Hulls,
· Business Interruption from non arrival or damage to stock in transit,
· Air Cargo,
· Sea Cargo,
· Land Transit of Cargo,
· Marina Operators Liabilities,
· Charters’ Liability
· Ship repairers’ Liability
· Carriers Liability,
· Pleasure craft,
· Tradesmens Tools in vehicles,
· Home removals
Pitfalls of Product Movement Insurance or Marine Insurance Policies
When purchasing cargo from overseas many suppliers sell CIF (cost, insurance and freight). There are two potential problems here, …
1. Their policy may not nominate the correct delivery address and the “bill of lading” may nominate “over the side at Melbourne Australia”. Fine … your goods are here but as soon as the container touches the dock your insurance contract is considered complete and subsequent losses from this point are for your own account.
2. If you insure through your supplier, let’s say in China for example, and there is a loss you have to deal with their agents to recover your loss. Good luck. 12 months might be a good outcome, because offshore insurers are not bound by the Australian Insurance Act 1973. Worst still you might not get paid at all, because they do not follow ‘western’ protocol. Insurance is a “promise to pay money in the future … MAYBE”!
You decide to take a chance – not many ships sink these days, you can save a few thousand dollars … she’ll be right mate. WRONG!
Have you heard of “GENERAL AVERAGE”? With an Australian or western insurance policy and if there is an incident on board the ship that causes the ship owners to call a “general average”, your insurers guarantee your bond to the insurance adjusters. Without insurance you will be required to pay the bond before your cargo is released to you.
This situation does not happen with air cargo only sea cargo.
Product Movement Insurance or Marine Insurance Frequently Asked Questions (FAQ’s)
Q: Will my marine cargo insurance pay for delay from any insured peril?
A: Normally NO. If you are in the fashion business for example, send your consignment to its destination by air in a minimum of 5 consignments. That way you have a good chance of 80% getting through.
Q: Will my policy pay “duty” if I have a total loss.
A: Only if you nominate it in the insurance contract. Get a broker who understands marine (email@example.com)
For More Information About Product Movement Insurance or Marine Insurance Policies …
For more information about Product Movement Insurance or Marine Insurance Policies send us an email, call us on 1300 880 409 or use our Contact page to send us an online inquiry. We will contact you within 24 hours to answer your inquiry.