Maritime Insurance…
A small premium that covers you for so much more than just the value of your goods. We have insurance for multiple reasons including theft, losses and damages, but also for damages & losses for others!
We can share an unforeseen and unfortunate experience:
A vessel departed the port of Durban destined for Australia. After the vessel was well under-way, a bug infestation was discovered. As one could assume, Australia is a little bit cautious when it comes to these types of matters. In short, the vessel was closer to the port of origin than the destination so it was turned around and sent back. The cost of this exercise will fall under the law of general average, which dictates that the shipper will be the responsible party, liable for costs. These costs are shared by all the cargo holders on the vessel.
It may seem trivial, but, it could cost a few thousand dollars. Don’t let yourself fall victim to a general average claim!
Marine Insurance encompasses more than just insurance over while on the water. This is an important consideration when looking at your logistics chain, and deciding on how many providers will be involved.
What it covers?
If FATS are shipping from door to door for you, then any marine insurance cover you have in place with us will cover you for road transport, loading, unloading, shipping and all sub-contractors and authorities until its delivered to your door. However, if you arranged your own transport to port, and then shipping with FATS, the marine insurance will not cover any damage that happens while on the road transport, as this is not a leg we are arranging for you. The marine insurance only covers logistics activities that we are arranging.
General Average:
The law of “General Average” is a shipping term that matters when dealing with cargo insurance, bills of lading, and the legal issues of international freight shipping. It’s the shipping principle of maritime law. General Average occurs when a voluntary sacrifice is made to safeguard the vessel, cargo or crew from a common peril, for example, a fire. If the sacrifice is at issue, all parties shipping on the vessel contribute to the loss based on their cargo’s value whether their shipment was damaged or not. Appointed adjusters will assess the value of each shipment on board and apply a formula that determines the financial contribution of each cargo owner.
If you’re a cargo owner with shipments onboard a declared “general average” vessel, the likelihood of having your cargo released timely is dependent on how soon you can post a security. The security must be in the form of a cash deposit, bank guarantee or bond. If the cargo owner has cargo insurance, the “average guarantee” is posted by the insurance company. Having cargo insurance is beneficial to cargo owners as it not only provides coverage for damaged goods but it facilitates the release of their cargo.
Imagine the cost if the vessel sinks…