Boat vs Marine Insurance: What's Covered?

Boat marine insurance is quite popular with people who own any kind of aquatic vehicle. Though the name might indicate that the insurance is applicable only to boats, the insurance is actually applicable even larger vessels such as ships and the cargo that they carry. There are variations in the extent of coverage provided by boat marine insurance depending on the company that provides the insurance.

What Exactly is Covered?

The marine insurance is basically meant to insure boats and ships, the cargo that they carry, the terminals between which they carry these materials and any other property that is used on these vessels. The coverage is applicable to materials that are obtained, retained or transported between the two terminals. Hence, the insurance is much more extensive than its name suggests.

Cargo Insurance

The insurance covers both onshore and offshore property. The offshore properties are the vessels and the cargos, while the onshore properties include the ports, terminals, pipelines, platforms for oil, etc. There is a separate branch of this kind of insurance, known as cargo insurance, which may be covered under marine insurance or can be taken as a different plan in itself.

Marine Insurance Act 1906

The Marine Insurance Act that governs boat marine insurance is quite an old act, having been passed in 1906. There are various clauses included when the plan was first formulated and most of the clauses continue to be followed as they were first formulated, without many modifications or amendments.

The plan states that policies without insurable interests are void. There is also an obligation on part of the policyholder to disclose all the material facts pertaining to the insurance before applying for it. If anything is kept hidden, it is counted as concealment and the policy might be even deemed void. When boat marine insurance is voided, the provider is not held liable for the payment of any damages from the date of the breach, if it can be proven. However, if the breach is set aright, the coverage can become active again. Overriding this, it is the privilege of the insurer to waive any breach of warranty if they so desire.

Fit to Sail

There are some other points that are needed for eligibility for boat marine insurance policies. One of the most significant is that the vessel must be seaworthy when the voyage is started. This is applicable for all voyages that are made by the vessel. If there was a provable snag with the vessel and it was still sailed, the insurer might refute a claim.

There is also a provision by which the insured party can ask for a loss if the vessel or its cargo turns up later. Here, only a part of the damages are compensated for, which are equal to the extent of the damage done. However, if there is a physical destruction of the vessel or the cargo, a total amount is generally compensated for.

It is important to discuss with the provider if they have any modified clauses, since insurance is always a subject of mutual discussion between the insurer and the insured.

Know what you are getting in to before you sign any documents, and consider your needs carefully when choosing a policy.

 

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