Know what the Types of Marine Cargo Insurance are

Singapore, being surrounded by the sea, derives its primary profits from transporting cargo either locally or globally across the water. Such goods that are in transit are susceptible to heightened rate of damage. There are also very high chances of the cargo getting lost. Misplacement or damage to cargo spells financial loss. Marine Cargo Insurance is one of the most important Commercial Insurance Singapore.  At Allegiance, there are two variations of Marine Insurance offered: Marine Cargo Insurance and Marine Hull Insurance.

Of the many available types of covers offered, a few Marine Cargo Insurance types are:

  • Open Cover Policy: This policy is ideal for those companies who primarily trade with frequent cargo ferrying. The Open Cover is a facility that is automated to insure the shipment against the cover limits, terms, previously agreed upon conditions and rates. This cover simplifies the insurance task as the cargo is either declared in bulk or individually for the stipulated time of agreement. The cancellation of such insurance is only after a formal written letter is presented either by the client or the insurance company.
  • Single Voyage Policy: As the name suggests, such insurance is applicable for a single transit. This policy is ideal for a conglomerate who is rarely involved in cargo shipments.
  • Inland Transit Cover: This policy is a type of annual cover that protects the goods being transported while they are on land. The insurance covers the damages that result from handling of the cargo either by the transporter on land or the professional carriers. For this cover, a premium is paid annually upfront without declaring the value of the shipment.
  • Annual Cover: The policy is similar to that of Open Cover. Annual Cover is ideal for such businesses that deal with great volumes of shipments on a regular basis. Companies that are primarily focused on cargo shipments should chose the annual cover. Each time a shipment is ferried; there is no requirement for declaration. For the period the policy is bought for, the cargo is protected. At the time of purchase of the cover, the premium amount is decided by a rough estimate of the shipment value. In general, cargo services have a list of specific services and items they are willing to take on. A comprehensive estimate of all types of cargo is summed up to reach the deposit price. The payable price of premium is adjusted right at the end of the policy period to understand the exact shipment value made during that time.

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