Marine transportation insurance is insurance for the property while it is in transit from one place to another. "Nautical" refers to the sea, and it was a sea lane in the minds of writers of the Marine Insurance Act of 1906 (MIA).
While the law mentions "marine casualty," "marine adventure," and "marine perils" in its opening chapters, marine insurance departments also ensure cargo is carried by aircraft, land vehicles, and railroads. Many shipping operations, especially international ones, require two or more types of shipping and are required by law.
Therefore, marine cargo insurance is a class of property insurance that insures movable property against loss or damage arising from perils related to navigation at sea or in the air and subsequent land and inland waterways.
The law does not specifically refer to air travel, nor just land crossings. Therefore, to ensure that the law applies to all modes of transportation, it is common to see a clause in a policy document stating its jurisdiction in all circumstances.
“Maritime Peril” means the peril arising from the transportation or presentation of property by the sea. Sea perils (drowning, stranding, collision, etc.), fires, war perils, pirates, thieves, being caught, taking water, ablutions at sea, and “...all other perils of the same kind or as may be specified in the document.”
Including this last sentence allows insurers to include other risks, such as risks suitable for other modes of transportation, in their policies.
Such as collision, deviation, and overturning. However, it should be noted that the natural movement of wind and waves is not considered a danger to the sea.
So what exactly is “cargo” in marine cargo insurance? The law states that this is the subject of insurance. In essence, anything can move from one place to another. The raw materials and components that go into guaranteed or finished products are often taken out.
The type of ownership for this type of ownership is “goods and/or merchandise,” which refers to traded goods. Equipment items can also be secured
Who can ensure marine cargo in the United States?
According to Section 5 of the Marine Insurance Act 1906 (MIA), a person with an insurable interest can insure his interest under a marine insurance policy.
That is, "Who owns the insurance benefit?" begs the question. The law goes on to say that it is "interested" when a person is in any legal or equitable relationship with an adventure in which he or she could benefit or suffer a loss through safe access to the property.
Consider the position of the manufacturer whose goods are sold. He has an insurance interest in this merchandise even when he is distancing himself to get his money.
Up to the point of payment, he is in a position to profit from the success of the adventure, or to suffer if it fails. Therefore, she is entitled to secure her interest under the sea freight bill.
Likewise, the buyer has an insurable interest or expects to be appropriately obtained and so may affect marine insurance.
The law states that the insurer (note the term insured, not insured) must handle the insured case at the time of the loss, even if the insurance does not need to worry when it goes into effect, Section 6 of the MIA).
Therefore, in the event of damage to movable property, it is necessary to find out which party has an insurable interest at the time of loss by referring to the conditions of sale or purchase.
In addition to the buyer and seller, other parties involved may also insure within their insurable interests. For example, freight forwarders and freight forwarders or shippers and other agents charged with looking after and protecting the goods, charterers and other charterers will have an interest in the risk as long as they can be sued for non-delivery.
Interestingly, the law refers to insurance companies that, through their policies, have a vested interest in the success or failure of the venture and are therefore eligible to insure (or, in their case, reinsurance) their insurable shares (Section 9 of the Ministry). interior).
If there is no insurable benefit or reasonable expectation of obtaining it, marine insurance is a betting or gambling contract and is therefore void (Interior Section 4).
How and why is the marine certificate transferred from one entity to another?
When the exporter sells the goods abroad, he has the option of selling the goods on terms that leave the insurance to him or the buyer, or he can take out insurance that covers the entire trip, but the interest is transferred to the buyer. When the insurance benefit is transferred from one to another.
In some circumstances of the sale, cost and freight insurance are common, whereby the buyer or another person who has an insurable interest in the goods is direct with the insurance company and provides the buyer with an insurance policy or certificate for that purpose, at the seller's expense.
This is a marked difference from many other home insurances where the property remains the same for the duration of the coverage. Compensation is paid to the person mentioned in the document. However, the marine document must allow the change of ownership as property and trading in the subject matter of the insurance.
Therefore, a marine policy may be waived unless it contains provisions to the contrary (Section 50 of the Marine Insurance Act 1906 (MIA)).
The insurance certificate contains additional information. The first gives the name and address of the insurance company's claims representative in the country of destination, and the second, on the contrary, usually signs the certificate by the insured, thus opening the certificate or transferring it to the buyer.
This means that the buyer can continue to obtain a settlement for loss or damage to goods in transit as if the original had been secured. For insurance companies, this process means paying compensation to third parties who do not have insurance in other countries.
In addition to providing evidence that the offering was made under an express policy, it also serves as proof of ownership allowing the asset holder to obtain settlement. It also gives the insurance company the information needed to apply for the policy benefit and collect the insurance premium.