Hey readers, In this series of Insurance now we are going to talking about Marine Insurance a type of insurance which is used in the case of import of goods or in export of good also. So,Here we a talking about what is marine insurance ? Where it use ? What are the advantages of marine insurance? What are the disadvantage of marine insurance and about complete information on Marine insurance.
So, let’s get started.
Suppose you are a business man in Mexico and you want to buy spices from India. Then you contact an Indian seller of spices. The Indian seller make your order ready. You give him a huge order so, they delivered to Mexico in ships. Then the business man of Mexico make marine insurance because if the ship where your order is coming can have to face accident in their way where the order come.
Marine insurance give security to the buyer that if anything happens with his goods the insurance company are willing to pay the amount of loss. We can say this insurance is the most popular insurance. So, why it is called the most popular insurance policy ?
Well in this whole world people do lost of business or we can say international business they need transportation facilities too so they buy marine insurance again and again when ever they do business.
Now, we understand what is marine insurance and after that we’ll understand what is the merits and demerits of marine insurance.
Merits of Marine Insurance
Here are some merits of marine insurance.
1. In marine insurance maintain the start utility of business and work as a protection from undesirable risk of loss.
2. It gives many policies and schemes about the insurance in different budgets. So, a buyer can select the suitable policy about their work.
3. It gives three different term of policies. The term are Hull insurance,Freight insurance and Cargo insurance.
Demerits of Marine Insurance
1. The charges of these policies are very high. They give protection for goods but charge also well.
2. It protects the ships damage not the goods so if some incident happens with your goods but not have any damage in the ships. The insurance company is not pay anything for damage.
So, These are the some merits and demerits of Marine insurance and hope you now understand about this type of insurance.