With the globalization that has occurred, the import and export of goods is an important business. The economies of all the countries depend upon the import and export of goods and the balance of foreign exchange payments. Although the fastest route of transportation of freight and goods is via air, but that is a very expensive mode of transportation. Therefore, the most common and cheapest method of transportation of goods is marine transportation. Various finished goods, vehicles, garments and oil etc. are transported through marine routes. But there are also a number of issues that occur during marine voyages. Therefore, in order to give protection to the goods and the investments of exporters and importers, various companies offer marine insurance. That is the reason why a lot of people prefer to have marine insurance quote from a certain company before selecting them for the transportation and export of their goods.
Reasons for which marine insurance is needed
There are a number of reasons why people want a marine insurance plan beforehand. There are 4 ways of transportation of goods. These ways are air, rail, road and water. Although the water transportation is the cheapest mode of transportation, it involves a large number of risks as well. These risks include the natural disasters which pose a threat to the safety of the goods that are being transported. But there are also various other risks apart from natural disasters. These include piracy and cross border shoot outs. The main issue of piracy occurs in the adjacent areas of Somalia due to the financial conditions of the country. Therefore, for all the vessels carrying any goods that pass through any areas that are famous for various piracy issues, the businessmen prefer to have marine insurance for their goods to protect their interests against the damages.
The marine insurance offers a safe haven to the various marine transporters and shipping corporations. This is because natural calamities are a common occurrence during voyages. Therefore, they get the security of their finances and losses to be covered by getting insurance. But in order for the insurance claim to be fulfilled by the company, the captain of the ship also has to follow strict guidelines and routes. Even if there is a small detour in the prescribed route of the ship, the insurance company will not cover any damages even if losses occur. The main reason for this is that all the insurance companies have done extensive research regarding the areas that are prone to piracy and take the various weather forecasts in consideration before offering the insurance. With the help of all these studies, they are able to provide safety. But if even after all the precautions, there are damages, and then they will be liable to cover them.