The marine insurance survey is the most common and most complete inspection conducted by a surveyor. Designed specifically to meet the demands of the insurance companies and lending institutions, it needs to evaluate and assess the financial risk implicated in insuring or financing the boat. The objective of this inspection is to give details on the boat’s condition and value when the survey was conducted. Basically, the marine insurance survey will only involve detailed visual assessment of the boat, except when the insurer or lien-holder necessitates an operational testing or sea trial. It shall examine the safety and se-worthiness of your vessel, on the basis of the present condition of its systems, equipment and structure alongside the assessment of the boat’s fair market value. A marine insurance survey will usually be a pre-requisite prior to provision of coverage. A survey similar to that will also be required every five years as a must for renewal of coverage. When it comes to the point that an accident, vandalism or theft occurs, a damage survey shall be conducted to evaluate the extent and cost of damage to the vessel.
One factor to consider in choosing a good surveyor to obtain a good marine insurance survey is the background, for instance, the membership of an accrediting organization offering designations signifying that a member has met strict technical, professional and ethical standards. With these at hand, you will have knowledge that the person you are considering is a credible professional. Select a marine insurance surveyor specializing in offering surveys for your specific type of vessel. A surveyor for a Yacht or any small craft for instance, specializes in surveying small vessels with a length of up to 300 feet. Once your surveyor met this standard, the next step is to ask if he/she can provide validation of expertise, work experience and qualifications.
It is crucial to request this as it is indeed significant to know if your surveyor provides you with a report on your boat without lacking detail and clarity. Be cautious that the marine insurance surveyor can black-out any personal information of the client or specific details of the boat. Also, try to find out if your surveyor has any existing professional liability insurance like the one called Errors and Omissions insurance. It may be limited though, to seek remedy beyond the marine survey company’s assets once negligence should come up. Also take note that if your marine survey is for insurance purposes, bear in mind that the insurer will typically reject if once the survey is conducted by a surveyor who is directly associated with a marine or boatyard due to the possibility of conflict of interest.
Transporting cargo around the country or even outside the country is not without its share of risks. The goods in transit may get stolen or catch fire or the carrying vehicle may meet with an accident which might destroy the valuable cargo. As you can see, there are a lot of things which may go wrong and damage the valuable cargo.
Well, you might be overlooking its importance for months or years but it is always a good idea to secure your cargo by buying a Marine Insurance Policy for your goods.
What else, you need to keep in mind to go through the Marine Insurance Policy carefully before you make a purchase decision?
In this blog, I am going to discuss 3 major reasons to buy transit insurance services that you didn’t know before:
1 – Damage to valuable cargo may lead to huge losses
Importers and Exporters normally transport valuable cargo on a regular basis. If you transport such valuable cargo without insuring the cargo, you would be responsible for any loss that happens due to damage to the cargo. The financial losses can be quite substantial.
A Marine Insurance Policy will be beneficial in securing the cargo as it will protect you from financial losses by making you eligible to get compensation for the loss suffered due to cargo damage.
2 – Flexibility to choose Annual Policy or Single Trip Policy
Transit Insurance Policy offers flexibility based on your requirements. You can opt for a single-trip transit insurance policy also if you have a one-off trip. The Insurance would end as soon as the cargo reaches its destination.
· You need not purchase an annual Marine Insurance Policy like in other insurance policies.
· You can opt for Marine Insurance coverage as and when it is required.
3 – Transit Insurance Premiums are reasonable
If you have bought a car or bike recently, you know how important it is to insure it, right? You must pay less than 1% of the product cost to buy its insurance. Even in the case of cargo, depending on the type of cargo and country of export – very affordable plans are available for Marine Insurance Policy. I mean, you need to pay a very little amount to take insurance for your shipment as compared to the total cost of your freight.