Marine Insurance

Aug 04

The grounding of the Seatrade vessel KEA TRADER on a reef not far from Noumea should serve as a stark reminder of the value in having your cargo fully insured with the proper Marine cover.  A small number of unfortunate clients had cargo on this vessel and at time of writing it appears almost certain that “General Average” will be declared by the ships owners.

Essentially “General Average” means the cost of salvaging a vessel and / or cargo in this type of situation, is proportionally shared amongst all those who have cargo on the vessel, and cargo will not be released until the calculated amount proportionally shared, has been paid by the importer or their insurance company. 

As unfair as that may sound, it has been a part of Maritime Law for centuries.  As you can imagine the amount of money involved can be quite substantial. 

Standard Marine Insurance policies tend to also cover situations where General Average is declared.  We would recommend you check your policy covers this with your Insurance Broker.   

Friday, 4 August 2017

Posted: 2 weeks 23.8 hours ago
Tags: Insurance