Marine insurance is essential when it comes to safeguarding goods, cargo and vessels from the uncertainties of sea transit. One of the key types of marine insurance policies is the time policy. This policy is designed to offer coverage over a specified period, rather than for a single journey. In this blog, we break down what a time policy in marine insurance is, explore its features and how it differs from other forms like single-transit insurance.
Benefits and features of time policy in marine insurance
Let us understand what makes a marine insurance time policy beneficial for shipowners and logistics companies:
Key benefits:
- Period-based coverage: A time policy insures the vessel for a fixed duration, usually 12 months.
- Ideal for regular voyages: It is suitable if your ship operates multiple trips within a year.
- Peace of mind: Since the policy doesn’t depend on specific voyages, you don’t have to get coverage every time a trip begins.
Key features:
- Flexible duration: While often one year, it can be less or more time, depending on what you need.
- Hull coverage: It commonly covers the ship or hull against marine perils during the policy term.
A time policy marine insurance does not focus on where the vessel is sailing but when it is sailing. That’s what sets it apart from voyage-based policies like single-transit insurance, which only cover one specific trip from start to finish.
Additional features of time policy
Beyond the basic benefits, time policies come with other useful features. These additions help make the policy more robust and suited to your business needs.
Extended coverage:
- Port risks: Offers protection even when the ship is docked.
- Lay-up returns: When the ship is not used for a long period, insurers may return a proportion of the premium.
Custom add-ons:
- You can choose clauses for war risks or strikes.
- Some policies allow coverage extension if the ship is mid-journey when the policy expires.
A marine insurance time policy is especially beneficial if your operations are continuous and not tied to a single destination. You get uninterrupted protection without needing to apply for insurance every time a voyage begins.
Conclusion
With your ship in constant motion, voyage-based policies are not always practical. That’s where the time policy comes into play. It works best for businesses that use vessels on a regular basis over a specific period of time. More comprehensive coverage, ease of documentation and the advantage to customise the policy, time policy marine insurance is the right cover for continuing marine operations.
Whether you’re new to maritime insurance or planning to transition from single-transit insurance, understanding time policies can help you make more informed decisions and receive the right protection for your maritime assets.
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.