Liga Asuransi – Based on statistical results released by the European Maritime Safety Agency (EMSA) from year to year, the rate of ship accidents that occur in European sea areas is increasing. In 2018 there were 3,174 accidents. 95 with severe condition, 54 times with fatal condition. 941 people were injured, there were 25 ships.
Losses suffered by ship owners, goods owners, port parties and other parties reached billions of Euros.
This also happens in the Asian region, especially Indonesia where almost every week there are news of ship accidents that occur in various regions.
From the insurance point of view, the hull is classified as a high risk category. Thus, many insurance companies are not interested in guaranteeing their insurance.
Here we will provide information about marine hull insurance, there are several things about marine insurance as follows:
- What is Marine Hull Insurance?
Marine hull insurance (hull insurance) is an insurance policy specifically designed to provide coverage for water vehicles, such as boats, ships, yachts, etc. Hull means hull, this is what the insurance policy covers. Insurance provides financial guarantees if there is damage to the ship’s hull or engine because the risk is covered by the policy.
- What will the Marine Hull Insurance Policy cover?
Marine Hull Insurance provides coverage for the following risks:
-
- Damage to the ship’s hull, including machinery and equipment
- Damage or loss of ship due to fire, burglary and theft
- Accidental damage to the ship due to earthquake, lightning, etc.
- Damage done to other ships by the insured ship (third party responsibility)
- Damage to the ship during maintenance activities
- Criteria for parties who can insure the ship
Eligible parties to be able to insure the hull are:
-
- Port authority
- Ship owner
- Private and public port operators
- Claim Process for Marine Hull Insurance
In the event of an accident or unwanted incident, you need to file a claim for hull insurance. The following is for the insurance claim process:
-
- Notify the insurance company through the insurance broker about the event as soon as possible
- Get the claim registered and keep the registration number with you
- Also, provide details of the loss and the policy
- A surveyor by the company ascertains the damage and verifies the condition of the vessel
- After the survey, the appointed official will provide you with a list of documents to be submitted
- Submit the documents
- Upon receipt of the documents, if approved, the claim amount will be waived
- Documents Required for Claim Process
The following documents may be required by the insurance company when submitting a claim:
-
- Claim Intimacy Form (to be filled out & signed neatly)
- Documents Policy
- Deck Room Log Book
- Repair Receipt (if any)
- Survey Report and photographs
- Drydocking receipt
- Other details requested by insurance company as the case may be
- Marine Hull Insurance Exclusions Marine hull
Insurance is a comprehensive policy, but cases may vary beyond the scope of insurance. The following are examples of some cases:
-
- Normal wear and tear of the hull and engines
- Damage caused by nuclear activity
- Radioactive contamination
- Damage done by crew members under the influence of alcohol
- Intentional damage to ship
- Damage to ship due to terrorist activity
- Engaging in hazardous activities that could cause damage to the ship’s hull
- Sailing ship in the midst of a sea storm after a warm-up
- Excess Goods
- There are several important points that must be considered when buying hull insurance
-
- The age of the ship plays a very important role in determining insurance premiums, therefore it is advisable to get insurance as soon as it is owned.
- Be sure to get additional cover if you feel the basic cover is not enough
- Choose a higher deductible amount if you want to reduce the premium amount
- Submit a claim as soon as possible, if necessary, to avoid any kind of delay or hurdle in the payment process
- Premiums will depend on the type of vessel, trade limit, age of ship, ship valuation and size of deductible.
Duties and Roles of Insurance Brokers for Hull Insurance
To reduce the risks that can occur to ships that can bring huge losses to the owners or parties involved in the ownership and operation of ships, the presence of an insurance brokerage company with experience in marine insurance, especially insurance ships, is needed.
In order to reduce the risks that may occur on ships that can bring huge losses to the owner or parties involved in the ownership and operation of the ship, the presence of an insurance brokerage company with experience in marine insurance, especially ship insurance, is very much needed.
Marine insurance covers loss and damage to ship cargo, terminals, ships and their property. Insurance brokers have an important role to guide and explain the details involved in insurance policies and help their clients to make the best decisions. The following are the scope of work and responsibilities of an insurance broker:
- Prepare underwriting reports, negotiate, and place risks on the insurance market
- Communicate with clients and insurance companies to answer questions
- Ensure sustainability and growth of the marine insurance industry
- Collaborate with claims partners from insurance companies to manage claims submitted by clients and can be resolved quickly and with maximum value
- Establish and maintain business relationships with clients and insurance companies
- Ensure compliance with internal and external practices, rules, and regulations
Unfortunately to get the best insurance coverage is not easy. It requires extensive knowledge, skills and relationships with the insurance industry, especially with insurance companies that have the ability to guarantee hull insurance.
In addition, if an accident occurs, it is not easy to manage and solve it. This is where the important role of the insurance brokerage company is for you. All matters relating to claims insurance brokers will take care of it. You simply support by providing the required information.
