Marine Insurance
Marine insurance in Kenya is a type of insurance that provides coverage for risks associated with maritime activities, offering protection for ships, cargo, and liabilities involved in shipping and transportation within the Kenyan maritime sector.
What is covered in Marine Insurance Coverage?
A marine insurance policy typically covers various aspects of risks associated with maritime activities. The coverage can vary, but a comprehensive marine insurance policy may include:
Hull Insurance
Protection for the ship or vessel against physical damage, such as collisions, fires, and sinking.
Cargo Insurance
Coverage for goods being transported by sea, compensating for losses or damages during transit.
Liability Insurance
Protection against third-party claims for damage to property, injury, or death caused by the insured vessel.
Freight Insurance
Reimbursement for financial losses resulting from damage or loss of cargo during transportation.
General Average
Coverage for proportional sharing of losses in emergencies for the common safety of the ship and cargo.
P&I (Protection and Indemnity) Insurance
Liability coverage beyond standard policies, including crew injuries and pollution liability. Check out more about professional indemnity insurance as a stand alone cover.
Marine insurance policy is essential for mitigating the financial risks associated with the maritime industry, providing a safety net for shipowners, cargo owners, and other stakeholders involved in shipping and transportation. The specific coverage can be tailored based on the needs of the insured and the nature of the maritime activities.
What is not covered by marine insurance?
While the exact exclusions can vary depending on the specific terms and conditions of the policy, there are common exclusions in marine insurance coverage. Some typical exclusions may include:
- Unseaworthiness: Damage or loss resulting from the vessel not being in a seaworthy condition.
- Wear and Tear: Deterioration of the vessel or cargo due to normal use, aging, or gradual processes.
- Inherent Vice: Losses caused by the nature of the goods or their inherent characteristics.
- Delay or Consequential Loss: Financial losses due to delayed shipments or indirect consequences of an insured event.
- Nuclear Risks: Damage or loss caused by nuclear events or radiation.
- Acts of War: Losses resulting from war, hostilities, or acts of terrorism, which may require a separate war risk policy.
- Intentional Acts: Damage or loss caused by intentional acts or negligence of the insured.
- Unauthorized Use: Losses incurred when the vessel is used without the owner’s permission.
- Lack of Due Diligence: Losses resulting from the lack of due diligence on the part of the insured in maintaining safety standards.
It’s crucial for policyholders to thoroughly review their marine insurance policy to understand the specific exclusions and limitations. Additionally, consulting with an insurance professional can help ensure that the coverage meets the unique needs and risks associated with maritime activities.