Marine insurance is focused on international trade that occurs via maritime routes. Moreover, you should know that the ship or the cargo causes marine risks. The businessman in Cameroon and the ship owner constantly want to ensure that their shipment and ships arrive safely.
What is Marine Insurance?
Marine insurance is a term used to describe a contract of indemnification. This insurance covers any loss or damage to ships, cargo, terminals, and other modes of transportation. It confirms that the products shipped from the origin country to the destination country are insured.
The phrase first appeared when people started shipping products by water. Contrary to what the name might imply, this insurance covers all forms of cargo transportation. For instance, they know the insurance as the contract of marine cargo insurance when items are carried by air.
Read Also: How to Travel to Cameroon and Nigeria By Boat or Cargo Ship.
How does Marine Insurance work in Cameroon?
The ideal way to transfer responsibility for the products from the parties and middlemen involved to the insurance firm is through marine insurance.
The legal responsibility of the middlemen handling the goods is first restricted. Instead of being responsible for the items alone, the exporter can get maritime insurance to protect the exported goods from potential loss or damage.
The carrier of the goods may cover the expense of losses and damages to the items while on board, whether the shipping firm or the airline. However, the agreed-upon payment is typically made "per shipment" or "per consignment."
It is possible that the coverage offered won't be enough to pay for the cost of the shipping products. As a result, exporters prefer to send their goods after having them similarly protected by an insurance firm.
Relevance of Marine Insurance
To fulfill the contractual requirements for exports, this insurance is required. The exporter must get this insurance under agreements like cost insurance and freight (CIF) or carriage and insurance paid (CIP) to honor the contract and protect the buyer's or their bank's interests.
The seller may not be required to ensure the products in the event of Delivered Duty Unpaid (DDU) and Delivered Duty Paid (DDP) agreements, though, in reality, they typically do.
See Also: Travel Insurance in Cameroon.
Types of Marine Insurance
There are types of marine insurance you should know. They include:
- Freight Insurance
- Hull Insurance
- Liability Insurance
- Marine Cargo Insurance
1. Freight Insurance
For instance, the operator would lose freight receivables with freight insurance if the products were damaged in transit. Therefore, the insurance will be based on reimbursement for loss of freight.
2. Hull Insurance
Hull insurance covers the hull and torso of the transportation vehicle. It protects the conveyance against damage and mishaps.
3. Liability Insurance
The purchase of marine liability insurance compensates for any liability resulting from a ship colliding or crashing.
4. Marine Cargo Insurance
A marine cargo policy covers items that are shipped from their country of origin to their country of destination.
See Also: Insurance Overview in Cameroon.
Importance of Marine Insurance
Many import-export-trading processes require this insurance. Accepting the agreements, each party handles the payment of the insured items. There are various reasons to purchase this insurance before shipping the export cargo, albeit its issue goes beyond contractual responsibilities.
One of the following three parties must insure goods while they are in transit:
- Forwarding Agent
- Importer
- Exporter
- Anyone involved in the transit of goods
Where to get Marine Insurance in Cameroon?
In Cameroon, purchasing this insurance is a simple process. The nation's geographic location enables many banks and financial organizations to offer this insurance. Read through also to learn how to obtain marine insurance in Cameroon.
The Principles of Marine Insurance
Some principles need to be considered in this type of insurance. They include:
1. The Principle of Good faith
According to the parties, the insurer and the assured must have complete faith.
2. Principle of Insurable Interest
Any item shown as a marine risk and the assuring party handling the insurance of commodities should have legal significance. Additionally, a phrase called "Incoterms" is used to formally designate who takes each party's insurance of the goods.
3. Principle of Proximate Cause
The proximate cause is ineffective and not contemporaneous in time. However, it is a particular and significant cause of loss.
4. The Principle of Indemnity
The parties' insurance will only be adequate until the loss. To make money, the parties cannot get insurance. If they do, they will only receive the loss itself.
5. Principle of Contribution
There may be over one insurer providing risk coverage for items. In these situations, they must divide the money among the insurers fairly.
What is not covered under Marine Insurance?
There are some things this insurance does not cover. They are:
- Intentional loss
- Delivery issues
- Renovation and repairs
- Bad quality goods
- War and situations
- Personal insolvency.
Conclusion
Marine insurance covers a wide range of risks. These risks include sinking, burning at sea or standing still, becoming adrift, collisions with other ships, jettisoning, explosions, sea monsters, etc. They cause losses to the vessel and its cargo, as are many other maritime dangers.
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