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Marine Boat Insurance Guide

January 17, 2012 | Comments: 0 | Views: 167

Insurance coverage needed by the ship owner in it activities for operating the ship as a transportation listed as follows:

1 Hull Insurance, including engines, boilers, all fixtures and ship equipment, it's called Hull and Machinery (H & M) insurance.2 Increased value insurance or insurance disbursement. 3 Freight insurance. 4 Protection and Indemnity Insurance

Hull and Machinery Insurance

Protect the shipowner from any damage/physical damage of the ship, also guarantees the ship owners from it obligations and responsibilities to third-party, for example, if ship collided with another ship, ship crashed into the dock, and so on. Hull and Machinery insurance is only associated with the vessel, engine boilers, all equipment and ship equipment.

Commonly what is covered from loss is total loss, partial loss (particular average damage), the contribution of general average and salvage also obligations to third-party.

Increased Value Insurance

If the ship suffered a total loss as a result for the shipowner apart from the loss of his ship, also suffered losses of abstract(intangible loss), the loss of "ability" to earn income. Another result of the ship experienced a total loss, the crew will lose their jobs, as well as facilities and employees on the shore, especially in port operations will be reduced. Indeed, facilities and employees of the affected vessels may also be used and hired to serve the other ships, but nevertheless, the overall activity (over-all operations) will be impaired balance and reduced activity. In addition, the amount of compensation obtained by the shipowner from the insurer is not enough to buy a boat in same conditions with the ship experienced a total loss as a result of changes in world market prices ships (since then and now, in general prices of goods factory-made, including boats always rise in the world market). For losses(abstract) Thus, the insurer were willing to cover. This means, that the ship owner(insured) able to cover the insurance for such losses, called Increased Value Insurance also called Disbursement Insurance. Thus, losses in the abstract is treated as interest that can be insured(insurable interest), although very difficult to show an interest, but there is a loss if the vessel suffered a total loss.

Since it is very difficult to show an interest, then the proof of interest policy requirement is imprinted on the policy. It's very difficult to determine the amount of abstract loss, so does the possibility of vessel price increases at the time vessel coverage was closed. Because of this difficulty, usually Increased Value Insurance is expressed by a percentage(%) of the hull and machinery insurance coverage price by 10% for Increased Value that will be paid by the insurer.

Marine Cargo Insurance Guide: Provides various information related to marine transportation insurance in accordance with applicable legislation.

Source: EzineArticles
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