Carmen Pasqualle, marine manager of Lion of Africa Insurance said that with the rise of cargo ship accidents worldwide, including the bulk carrier Smart, which recently ran aground off the main beach at Richards Bay, exporters and importers can least afford skimping on cover, or making costly mistakes that could present their businesses with even bigger problems, in the event of an accident.
"Marine cargo insurance helps exporters and importers to cover the physical damage or loss of their goods while being transported by sea. Failing to arrange appropriate cover can potentially harm a business and have a serve impact on its revenue stream," said Pasqualle.
She advises exporters and importers to take note of the following when taking out marine cargo insurance cover:
Pasqualle said that exporters and importers should also be familiar with General average, which is independent from marine cargo insurance. "It is an agreement between the ship owner and cargo owners, to share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole during an emergency. General average claims can arise from the ship being stranded, catching fire, damaged engine, and when the ship is in any danger of sinking."
She explained that marine cargo policies come in two forms, namely, open policy, which covers a number of consignments, and a specific policy, which normally covers specific consignments. "There is also an option to take out an all-risk or total loss cargo policy, which covers against all fortuitous losses.
"Regardless of the nature of business, it is advisable to seek advice from a broker or insurer before arranging any type of marine cargo cover, to understand fully exclusions and avoid being over and underinsured in the event of a loss," concluded Pasqualle.
