Marine Insurance Policy Exclusions
People that are in the shipping business might choose many forms of Marine Insurance policies that will protect the initial investment that they made to purchase their various vessels, and they may choose to use other Marine insurance policies to protect the cargo that is loaded onto the vessels. While these policies are good to have, there are some Marine Insurance policy exclusions that business should be aware of, that might make the protection of certain cargo impossible.
The Marine Insurance policy exclusions are applicable to all of the different types of Marine Insurance policies that you can purchase. These exclusions are exceptions to policies that in place that include clauses for replacement due to piracy and those policies that include protection to cargo from malicious damage. If any of the following instances apply, then the item is excluded from Marine Insurance coverage.
Any time cargo is willfully damaged by the Captain or crew of a vessel, then the Marine Insurance policy exclusions will prohibit that vessel from recouping the losses that were caused by the Captain and Crew of the vessel. If they had acted in a trusting manner and treated the item with respect, that item would not need replacing, and Marine Insurance will not pay to replace it.
If the cargo is placed into the cargo hold and is not packed away properly, then damage will most assuredly occur. Cargo will shift when the vessel goes to sea, and if the Captain and Crew has not allowed sufficient packing to keep it from shifting, then they are negligent in their duties to safeguard the cargo, and the Marine Insurance policy exclusions will not allow for the items to be replaced when this type of damage occurs.
If the cargo is fruits and vegetables, then fast transport of these food items will be needed to keep the foods from spoiling en-route to their destination. If the vessel is delayed for any reason, then the Marine Insurance policy exclusions will not pay for the rotten food. The Captain will be held accountable for the replacement cost at the port of entry and no claim for reimbursement can be made using the Marine Insurance that he has on his vessel.
If the Captain and Crew do not make every effort to ensure that their vessel is seaworthy, and leaks in the hull cause the vessel to sink, and with the sinking cargo is lost, the Marine Insurance policy exclusions will not pay for the cargo that is lost at sea. It might be difficult to prove that the unfitness of the vessel caused the sinking, but the ships condition will be a matter of record at any sea port and payment will not be made by the Marine insurance policy.
by Sally.Anderson 19 years ago