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What Marine Insurance is:
Marine insurance is that branch of insurance which provides coverage of risk to the goods of various description when they are in the process of transportation from one place to another. Goods may move from one country to another or within the country, they need insurance protection. Before we proceed further, let us see what Marine Insurance is: Marine insurance is a contract between the insurance company and the owner of goods. Undertaking under the contract is that if the goods suffer loss during transportation from an insured peril, the insurance company will make good the loss, subject to terms and conditions of insurance contract.
Why Marine Insurance should be done?
Once the goods are moved out from the warehouse of the seller, they are no more in the custody of the seller or the buyer. They are rather in the hands of a third party called the carrier. During the transit loss can arise from:
Fire, explosionContact with waterBreakageAccidentDerailment of conveyanceTheftPilferageNon-deliveryExposure to these risks and the fact that the goods are in possession of a third party enhances the chances of loss.
Who should insure?
Now the question arises who should take cover. The answer is obvious; any one who own the goods the reason being that he would suffer a financial loss if the goods are lost or destroyed. Another party who is in a similar position is the bank. Most, if not all, international transactions are financed by bank through L/C. Under L/C mechanism the bank holds all the documents of title which are not released to the consignee unless the bank is paid for the same. If the goods are destroyed before delivery to the consignee, the documents would not be retired and the bank will be a looser. It is to face such an eventuality that the bank requires insurance protection.
What is good in insuring?
The affect of insuring the goods is that the
element of risk of loss is transferred from owner
of the goods to the insurer. Being free from the
threat of loss, the producers and traders are able
to concentrate on their business activities. Thus
marine insurance acts as a partner who stands
behind the owners of goods in the event of a loss
and allows them to concentrate on their main
business fearlessly.
How Marine Insurance is obtained?
To obtain the cover following information is required:
- Client’s Name & Address, Phone Numbers.- Bank- Description of goods- Value- Ship/Transporter- Destination
This information should be sent to the following address:Adamjee Insurance Co Ltd
Adamjee HouseI I Chundrigar Road, Karachi
Phone: PABX: 241 2623–26, Direct: 241 6381, Fax: 241 2627
Adamjee Insurance Co LtdSuite No. 217, Eden Centre
43, Ghaus-ul-Azam RoadLahore 54000
Phone: PABX: 756 0001-4, Dir: 757 1523, Fax: 757 6024
Premium Comparative - Class wise Net of Reinsurance
AICL, #2 & #331 December 2005
(PKR Million)
CLASSCLASS ADAMJEEADAMJEEINSURANCEINSURANCE #2#2 #3#3
PREMIUMPREMIUM % % PREMIUMPREMIUM % % PREMIUPREMIUMM
% %
PROPERTYPROPERTY 1,014 1,014 2626 438 438 1111 158 158 1717
MARINEMARINE 1,062 1,062
2727 544 544
1414 222222
2424
MOTORMOTOR 1,466 1,466
3737 2,750 2,750
7373 318 318
3535
MISCELLANEOUMISCELLANEOUSS
409 409
1010 44 44
11 220 220
2424
CLASSCLASS AICLAICL #2#2 #3#3
PREMIUMPREMIUM % % PREMIUMPREMIUM % % PREMIUPREMIUMM
% %
PROPERTYPROPERTY 664 664 2626 291 291 1111 155 155 2323
MARINEMARINE 572 572 2222 318 318 1212 148 148
2222
MOTORMOTOR 1,030 1,030 4040 1,903 1,903
7373 201 201 3030
MISCELLANEOUMISCELLANEOUSS
294 294 1111 2626 11 157 157 2424
(PKR Million)
Premium Comparative - Class wise Net of Reinsurance
AICL, #2, #330 June, 2006