On a general note, Marine cargo insurance is divided into two aspects- Inland Marine Insurance and Ocean Marine Insurance. All risks that may occur on land, which accounts from the time the seller dispatches the goods from his warehouse of the factory to the point of boarding the product onto the ship and from unloading the cargo to the buyer’s warehouse or factory are covered by inland marine insurance. All risks that may occur during the transportation by sea are covered by ocean marine insurance. Apart from these general insurance policies, there are a few more variations in insurance that the insured can choose from.
1) A policy where the cargo is insured only from the port of the seller (the departure point) to the port of the buyer (the destination point) is called a voyage policy. The risk coverage is only for the sea transportation.
2) When a voyage is expected to take a long time to reach its destination a time policy can be issued. This is best suited for full insurance. A number of voyages can also be covered in this type of insurance. The time permitted is based on the policies of the government of that country.
3) A policy where the value of the policy is decided during the time when the contract is drafted is called valued policy. Here the ship is also insured. Freight and incidental expenses are covered by this policy. The agreed amount is paid in the case of losses. The dispute over the value of compensation does not arise.
4) On the contrary, when the policy is not valued at the time of contract is called unvalued policy. The compensation is calculated at the time losses are incurred.
5) When a specific geographical path by sea is used by a ship for transporting goods, instead of purchasing insurance regularly, a floating policy can be taken. It reduces on time and formalities. The value of goods need not be mentioned while purchasing the policy but when the goods are ready to be dispatched a declaration is to be made. A deduction from the lump sum amount is made based on the value of the goods dispatched for each cargo trade.
6) In the case of use of rail or road transportation before or after the marine transportation, a block policy can be purchased to cover all the modes of transportation used.
7) The underwriter involved in the policy may be more than 1. The obligation of the underwriters is well-established in the policy. This is a composite policy.
8) When only one ship is insured it is called a single vessel policy. When all or a few ships are insured under one policy it is called a fleet policy.
Each business is different from the other even if it belongs to the same sector. Similarly, every tradesman conducts his trade in his own unique way. The policy must cater to the needs of every person who wants to insure his goods or merchandise. As customer satisfaction is the main objective of any ethical businessman, customer satisfaction is expected by him from the insurance company when he chooses to insure his products.