Various Kinds of Insurance Policies

insurance policy

Various insurance policies can be divided into several categories, namely:

Travel Policy

The travel policy guarantees insurable interest during the trip from the place of departure to the destination.

Both places must be named in the travel policy, for example from Tg. Priok to London.

The road taken by the transport equipment must be the usual way.

If there are deviations needed in the trip, the deviation must be stated in the policy.

Travel policies can be used to bear goods on the way or for transportation equipment.

Travel policies used in sea transportation are called voyage policies.

Travel policies for goods generally bear during the trip from the warehouse to the warehouse, i.e. the coverage is valid from the time the goods are released from the warehouse to be loaded onto the ship at the loading port and ends until the goods are put into the warehouse at the destination port.

If the terms of the warehouse to the warehouse are used, the policy from the warehouse to warehouse is included in the policy, then the risks (hazards) are covered, for example the risk of damage, fire risk, loss risk, etc. for partial loss and / or total loss .

The coverage can also take effect from the time the goods are placed beside the ship (alongside ship) to be loaded onto the ship at the loading port and expire until the goods are dropped from the ship and placed alongside the ship (alongside ship) at the destination port.

If this condition is used, then the policy is stated at and from, for example at and from Tg. Priok to London, means that the coverage is valid since the goods are alongside ship at the loading port at Tg. Priok until the goods are dropped from the ship and placed alongside ship at the destination port in London.

The risks borne are also included in the policy.

If the travel policy is used to cover the ship, the ship is insured for each voyage from the port of departure until it arrives safely at the destination port.

The duration of coverage applies to ships using a travel policy, it can be determined with conditions at and firm or only from the terms.

For example at and from Tg. Priok to London, the coverage will take effect since the ship is ready to load goods at Tg. Priok, goods loaded, then sailed to London, arrived safely in London, the anchor was lowered, the cargo was unloaded from the ship to completion, then the coverage ended.

When used from terms, then in the policy listed from Tg. Priok to London, means that coverage begins to take effect at Tg. Priok after the rope that ties the ship is released and the anchor is raised (ready to start the voyage), then sails to London and arrives safely in London, the anchor is lowered and the ship has been moored, meaning the ship is ready to start unloading, ending coverage.

Port Policy

port policy is also called port risk policy. This policy bears the risks that may befall the ship while in port.

From the at and from requirements or from the terms of the ship, we can see that there are times when the ship is not covered by the travel policy.

For at and from requirements, the ship is not covered by the travel policy as long as the ship waits for cargo at the port, for the terms of the ship, it is not covered by the travel policy while unloading the cargo, while waiting for the cargo, and during loading.

Besides, sometimes the ship is idle in the port because there is little damage that needs to be repaired.

As long as the ship is in the port without being covered by the travel policy, then to deal with the risks that may be experienced by the ship, insurance can be closed with port policy.

The premium (%) for port policy is smaller than the premium for voyage policy because the risk at the port is relatively smaller than the risk in shipping.

Time Policy

Usually the shipowner closes insurance on his ship with a time policy, which is coverage that is valid for a certain period of time, for example 6 months, 12 months, or more than 12 months.

Usual is for a period of 12 months. Premiums are paid upfront when the policy is issued by the insurer.

By using a time policy, the ship is borne continuously during the period of coverage, does not matter whether the ship is sailing or is unloading and loading goods or is unemployed at the port.

What is covered by the time policy is the body of the ship (hull), including the keel of the ship, the engine of the ship and all ship equipment, which are summarized in terms of the Hull & Machinery insurance.

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To reinforce the deadline for the validity of coverage, then the policy includes the hour, date, month and year starting the insurance coverage.

It is possible for coverage to take effect at 12.00 or 24.00 when the ship is in port and ends when the ship is in port.

There is a possibility that the coverage ends when the ship is still on its way to the destination port.

In order for the ship to be borne until the ship arrives safely at the destination port, the time policy is always accompanied by a continuation clause, which is a condition for extending the coverage, for example extended for days until the ship arrives at the destination port.

For extension of coverage, the insured pays an additional premium.

In addition to the continuation clause, shipowners also need a return clause in the time policy, which is a condition that stipulates that if the ship is (detained) for more than 30 days at the port, a certain portion of the premium paid has been recovered.

The consideration of the return clause is because the risks in the port are relatively smaller than the risks in the sea.

Veem Policy

The requirement from warehouse to warehouse does not bear the goods while in the warehouse (veem).

To deal with the risks that may be experienced as long as the goods are in the warehouse, insurance can be closed on the basis of a time policy called policy policy.

This policy covers the goods while in the warehouse from possible risk of damage, fire risk and risk of loss.

War Risk Policy

The war risks policy covers an insurable interest in the risk of war.

In outline, the war risk policy bears the following risks:

  • Losses for interest caused by hostility, war activities, civil war, revolution, rebellion, resistance, civil strife, mines, torpedoes, bombs, and other means of warfare.
  • Losses for interest caused by strikes, closure of companies because workers make noise, commotion or chaos.
  • Losses for interest caused by the actions of bad people.

Valued Policy

valued policy is a policy for which the amount of insurance coverage is estimated.

In the policy stated conditions valued at or so valued.

This policy can be either a travel policy or a time policy or other type of policy.

For the price of $ 600 coverage for example, then the policy included valued at $ 600 or $ 600 so valued.

This means that the insurance price agreed to by the insurer and the insured is $ 600 does not matter whether the real value is greater or smaller than $ 600.

If you experience total loss, then the compensation of $ 600 as long as the total loss is caused by the risk (danger) borne by the policy.

If you experience partial loss, then compensation is in accordance with the loss.

Unvalued Policy

unvalued policy is the opposite of valued policy.

The insurance coverage stated in the policy is required as a basis for calculating insurance premiums and the maximum compensation limit.

If the insurance price is $ 350 and the real price is only $ 280, then if you experience total loss, the compensation is in accordance with the real value of $ 280.

If you experience partial loss of $ 70 then compensation is $ 70 because this amount is the actual loss.

If the damaged one is still sold for $ 35, then the compensation is $ 35.

If the insurance price is $ 350 and the real price is $ 430.

If you experience total loss, compensation is only $ 350. An excess of $ 80 is considered insured.

If you experience $ 130 partial loss, then compensation 5/6 x $ 130 = $ 108.3 .

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