What marine risks include

Marine insurance is one of the oldest lines, where many rules took shape long before other classes appeared. It brings together several separate products: hull insurance, liability insurance of the shipowner and other participants in maritime activity, cargo in sea carriage, and the risks of ports, terminals and marine operations. For Kazakhstan this means above all the Caspian Sea, river navigation and international multimodal routes through seaports.

Insurance is needed by shipowners and charterers, port and terminal operators, freight forwarders, cargo owners, companies serving offshore oil and gas projects, and banks financing the purchase of vessels.

Main risks and coverage options

  • Hull and machinery — loss of or damage to the hull, machinery and equipment as a result of shipwreck, collision, grounding, fire, explosion or bad weather; terms for total loss only or with cover of particular average are possible.
  • General average — the share of expenses and sacrifices incurred to save the vessel and cargo from a common danger.
  • Shipowner's liability — harm to the crew and third parties, pollution, wreck removal, damage to berths and other vessels; on the international market such risks are traditionally covered by mutual insurance clubs.
  • Cargo — loss of or damage to goods in sea carriage, including transshipment at ports; more on the cargo insurance page.
  • Liability of ports, stevedores and terminal operators to owners of cargo and vessels.
  • Vessels under construction, towage and one-off marine operations.

What is usually not covered

  • unseaworthiness of the vessel known to the policyholder before sailing;
  • wear, corrosion and latent defects without resulting damage;
  • sailing outside the agreed areas without notifying the insurer;
  • intent or gross negligence of the policyholder;
  • war risks and strikes — unless included by a separate clause;
  • delay and loss of market, unless otherwise provided.

What determines the price

The cost is affected by the type, age and class of the vessel, the classification society and the state of the technical documentation, the trading area and routes, the nature of the cargo carried, the qualifications of the crew and the safety management system, the loss history, and the chosen terms and deductible. For cargo, the type of goods, packing, method of transshipment and the value of the consignment are important.

How to choose a program and what to look for in the contract

  • Sum insured — the agreed value of the vessel or the actual value of the cargo including freight and expenses.
  • Limits of liability — must meet the requirements of charter parties, ports and counterparties.
  • Deductible — separate for particular average, mechanical breakdowns and liability.
  • Trading limits — permitted waters, seasonal restrictions, and the procedure for extension.
  • Period — time cover or voyage cover; the terms for the vessel laid up at the quay.
  • Clauses — which standard conditions apply, how war risks are treated, sanctions clauses, and the procedure for settling general average.

The meaning of technical terms can be checked in the glossary.

What to do if an insured event occurs

  1. Take reasonable steps to save the vessel and cargo and to reduce the damage.
  2. Immediately notify the insurer or its claims agent and the harbour master.
  3. File a note of protest, make entries in the ship's log and preserve the documents.
  4. Arrange for a surveyor's inspection before repairs start or damaged cargo is unloaded.
  5. Preserve the right of recourse against the carrier or the party at fault and do not waive it without the insurer's consent.

How Polis Re helps

Marine risks require knowledge of industry terms and access to a specialised market. We collect technical information on the vessel or operation, check the requirements of the contracts and select cover from Kazakhstan insurers, and place large or non-standard risks with the participation of the international market through reinsurance. We help with claims settlement and dealing with surveyors. You can estimate the approximate cost of cargo insurance in the calculator, and to select a program leave a request to the broker.