Sending goods across borders is never without risks. Whether you are exporting machinery or importing raw materials, a single delayed shipment or damaged consignment can disrupt your entire business chain. Sea routes, although economical, come with uncertainties such as weather issues, handling mistakes, theft, or even accidental loss in transit. In such situations, the financial impact can be significant. That is where marine insurance can help.
Why do exporters & importers need marine insurance?
If you are exporting or importing goods, here is why you need marine insurance:
- If you are seeking trade finance or export-import credit, many banks prefer businesses with insured shipments.
- Some countries require proof of insurance to allow clearance of goods. If you have marine insurance, it ensures compliance with such regulations, helping your shipments pass through customs without extra scrutiny or penalties.
- Even a single damaged or lost shipment can affect your supply chain, delay orders, and impact your cash flow. Marine insurance helps you avoid business disruptions due to preceding incidents.
Top benefits of marine insurance for exporters & importers
Whether you are an exporter or an importer, you must not overlook the following advantages of marine insurance:
- If your goods get damaged during transit due to rough sea conditions, shifting containers, improper loading, or handling errors, marine insurance compensates for your loss.
- When using the sea route, theft incidents in international waters are common, especially if the vessel is sailing through a zone noted for piracy. If your shipment is stolen, marine insurance offers compensation for the full or partial loss of goods.
- Natural disasters, such as cyclones, floods, earthquakes, or hurricanes, can disrupt shipping schedules and damage cargo. These incidents are beyond your control, but they can result in the complete loss of goods in transit. Marine insurance shields you from this risk.
- While transporting goods internationally, you may unknowingly damage the vessel, port property, or other cargo. This could result in legal claims that are difficult and costly to handle. The third-party liability provision in marine insurance can help deal with such a scenario.
Conclusion
Marine single transit insurance is important for both exporters and importers. It offers protection against damage, theft, and natural disasters during transit. Not only that, but having marine insurance ensures compliance with regulations, supports trade finance, and prevents supply chain disruptions.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.