| Marine Cargo Insurance |
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Cargo insurance covers marine, land and air. Marine cargo insurance is the most common amongst all because a great majority of goods is transported by conventional ships or container liners.
Therefore, marine cargo insurance plays an important part in promoting international trade by protecting the capital tied up in a trade transaction against loss due to the goods being damaged or destroyed during transit.
Once the goods have left the factory or warehouse, the owners of the goods have no control over their safe transportation.
Cargo insurance is aimed at removing the burden of risks from the shoulders of the goods owners. Without this protection, difficulties would arise between seller and buyer in their trading. Increased responsibilities may fall on carriers and freight charges would increase. Businessmen would be forced to think more carefully about every project.
In a trade transaction involving exporter, importer and bank, insurance should remove the possibility of financial loss to any one of the parties to that transaction from risks over which they have no control and which can result in a partial or total loss of the goods.
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