Marine insurance businesses in Zambia

Marine Insurance is a type of insurance designed to provide coverage for the transportation of goods either on the ocean or by land as well as damage to the waterborne instrument of conveyance and to the liability for third parties arising out of the process.

The three most common types of marine insurance are hull, cargo, protection and indemnity. There is no such thing as a standard marine insurance policy and not all marine insurance companies insure against the same risks in the same type of policy.

Marine insurance provides protection against loss from unforeseen events in the ocean. The events could be a collision of the ship with the rock, or ship attacked by the enemies, fire and actions of the captains and crew of the ship.

Marine insurance is further broken down into three categories of insurance. These are ship or hull insurance, cargo insurance and freight insurance.

The main elements of a marine insurance contract are:

• Unlike life insurance, the contract of marine insurance is a contract of indemnity. The insured can, in the event of loss recover the actual amount of loss from the insurer.
• Similar to life and fire insurance, the contract of marine insurance is a contract of utmost good faith. Both the insured and insurer must disclose everything, which is in their knowledge and can affect the insurance contract.
• Insurable interest must exist at the time of loss but not necessary at the time when the policy was taken.
• The principle of causa Proxima will apply to it. The insurance company will be liable to pay only if that particular or nearest cause is covered by the policy.

Marine insurance contract covers the loss or the damage of ships, cargo, terminals and any transport by which the property will transfer, acquired or held between the points of the origin and the final destination. The cargo insurance is the sub-branch of marine insurance, though this also includes the coastal and the offshore exposed property. For example container terminals, ports, oil platforms, pipelines, hulls, marine casualty, and marine liability. When goods are transported by mail or by courier, then shipping insurance is used. Any kind of insurance in the marine contract is covered under the Marine Insurance Act, 1963.

What are the features of the Marine Insurance Contract?

These are the following features:

• Claims
• Deliberate act
• Period of marine insurance
• Contribution
• Insurable interest
• Good faith
• Contract of indemnity
• Payment of premium
• Offer and the acceptance

What are the advantages of the Marine Insurance Contract?

The advantages are as follows:

• It provides full coverage against a wide range of variety of risks faced at sea for a marine cargo insurance broker.
• Most of the marine insurances provide options and plans for marine plan books.
• The different marine insurance provides the claim.
• Marine insurance covers the needs and budgets of their customers.
• It also provides the policies to provide the extensions against any damages due to the riots, strikes and the other perils.

You will find insurance companies and brokers in Zambia that offer marine insurance in this category.