What Are The Requirements To Buy A Marine Insurance Policy?

In maritime travel and transit, one can experience massive losses and damages. It can cost you a fortune, literally. Hence, it is paramount to protect yourself with transit or marine insurance. Whether you own a vessel, cargo or freight, you can buy a marine insurance policy to protect your assets while maximising profitability and minimising risks.
How do you buy marine insurance online, though? What are the requirements and eligibility criteria for the same? Let us understand in detail!
Marine Insurance Requirements
When you read the policy details and have a talk with your insurer, you can easily determine all the necessary marine insurance requirements. Be it coverage, documents needed or exclusions in marine insurance.
The eligibility criteria for you to buy marine insurance online are:
● Vessel Ownership
A vessel is a ship or carrier that transports the cargo or freight from one place to another. The vessel used in the concerned voyage must have legitimate ownership and registration with official authorities. The voyage must also be lawful to get a marine insurance policy. Hence the need for legal ownership.
The vessel can be owned by a person or a company. The only requirement is that the company should be registered and authorised to have that carrier vessel.
● Insurable Direct Interest
Insurable interest refers to a situation in which the policyholder has a direct financial stake in the insured property, in this case, the cargo or the vessel.
A direct insurable interest is one of the most important marine insurance requirements. Usually, the freight, cargo or hull owners are the entities that can apply for and be approved for the marine insurance policy.
Insurable interest is a necessity because it reduces the risk of damage due to negligence. Direct stakeholders will try their best to avoid any loss. So, the policy seeker must submit proof of this direct interest that can be insured.
● Type of Vessel
If you are buying hull insurance from a provider, the type of vessel is an essential marine insurance requirement. Typically, insurers offer policies for vessels like carriers ships, cabin cruises, boats, fishing boats, yachts and other lawful vessels for water transportation.
The type, age, size, condition and market or purchase value of the vessel influence policy premiums.
● Type of Cargo
If you are buying marine cargo insurance, you will have to describe the type of cargo being transported from one port to another. Your insurance company will demand all the details regarding the cargo in utmost good faith.
You must mention the type of cargo, nature of commodities, perishable or not, market or purchase value of the goods, packaging type, storage conditions and other factors. This allows the insurer to determine the marine insurance policy premium.
● Purpose of Voyage
The voyage’s purpose refers to the reason the insured cargo or the insured vessel is set out into the waters. The insurer requires this information to be able to provide a better and more comprehensive insurance solution.
Personal or leisurely voyages require a different kind of coverage than commercial and business-related voyages. A commercial voyage requires better coverage, something like marine employers’ liability.
Hence, it is crucial to provide accurate details of the cargo and the shipment.
● Safety Measures Compliance
Marine voyages have standard safety and security measures that every vessel and cargo owner must follow. Safety measures and basic precautions reduce the risk associated with the voyage.
Insurers determine the premium value based on the risk the policy will bear; the higher the risk, the higher the premium. Standard safety measures include fire extinguishers, life jackets, distress signals, comprehensive packaging, safe storage spaces and more.
● Vessel Owner Qualifications
The vessel owner’s qualifications and experience are among the most important marine insurance requirements, and they make a huge difference. The owner-driver must have optimal knowledge, skills, experience and a perfect record.
A perfect record refers to a driver who has no claims on their hand. If there is any claim history, it will affect the marine insurance policy premium amount.
Summing It Up!
A marine insurance policy is a financial solution for all your maritime problems. It is a legal necessity for your cargo and hull, but more than that, it is a fundamental responsibility. By providing all the abovementioned marine insurance requirements, you provide adequate protection for your maritime ventures.