Month: March 2021

Owning a yacht is a thing of pride for most people nowadays. Yacht owners usually never miss an opportunity to brag about their yacht’s engine, customised interiors and ostentatious exteriors. However, most yachts are actually not as sturdy as they appear. Due to constant exposure to seawater, most yachts are likely to have multiple damages here and there. Unsurprisingly, most of these damages are unnoticeable to the average person. This is the reason marine insurance experts strongly recommend to people buying used yachts, to get a thorough yacht assessment done by the experts, before buying one. If one is looking for financial assistance from banks to buy used yachts, then this process of evaluation becomes mandatory.

If you are looking for Marine Insurance in Singapore, you should consider Allegiance Marine Insurance. They cover both Marine Cargo and Marine Hull insurances. You should look them up above if you are serious about protecting your marine goods or properties. 

A good inspection report provides the prospective used yacht buyers, the perfect weapon to negotiate the price of the yacht. In the yachting circles, this process is referred to as condition and valuation survey. It is imperative that the evaluation of yachts is done by a qualified professional. Only the yacht experts know what to check for and what to ignore. Most people do not know that, most yacht models have some predefined strengths and weaknesses.

Yacht experts are aware of these and can help prospective buyers in taking a smart decision. In this article we shall discuss, what goes into making effective assessments of used yachts while buying them. There is no substitute for a current evaluation Some used yacht buyers decide to buy the used yachts based on some old reports. Trying to save the costs of inspection this way, can result in huge losses later. Seas are highly unpredictable, there is no saying what a particular yacht would have gone through in its life. A current yacht evaluation by an expert is absolutely important before making any decisions regarding buying used yachts. It is imperative that people realise that, most of the problems in used yachts only become apparent upon deep inspection.

Yachts require maintenance without doubts, no used yacht will be as good as new, no matter how well maintained it is. Almost all used yachts will need some amount of renovation before it is seaworthy again. A thorough evaluation gives the complete picture regarding this. Prospective yacht owners will come to know the extent of repairs necessary and the costs associated with it. Once these figures are known, the prospective buyers can decide if it is worth buying the used yacht for the price being quoted. Yachts will inevitably require maintenance and it is no different for used yachts.

Buying a Cargo Insurance Plan covers losses incurred due to theft, damages during loading or unloading of merchandise, non-delivery, damages during the cargo being transported by sea is covered by this insurance. The Marine Insurance Act 1906 is an act made by the Government of the United Kingdom for their native tradesmen, yet it serves as a guideline for most nations while drafting their own government approved laws for the traders.

History of Marine Insurance

As international trade took place by sea in the middle ages, insurance was a part of a rich man’s business. He was smart enough to invest in a contract in the case that calamity strike; he would not be completely ruined but would have the financial backing to re-enter into the business field with ease. Today marine trade is well organized, and damages are well compensated.

Marine insurance can also be called as a contract between parties that need to ensure the smooth movement of the goods that are in large numbers. Insurance of such goods can help the seller and buyer enjoy a smooth flow of trade and not be anxious about it.

Ocean Marine Insurance vs Inland Marine Insurance

In this insurance, there are two major parts to the insurance. The Ocean Marine Insurance which covers the dangers that may be faced at sea and the Inland Marine Insurance which covers the dangers and risks that may be faced on land. Though it is called marine insurance, the risks involved in bringing the merchandise from the seller’s factory or go down to the port and from the buyer’s port to his go down or factory or store are also covered.

What Does Marine Cargo Insurance Entail?

The insurance is based on utmost faith as every minute deal about the trade is to be revealed to the underwriter or the person providing the insurance contract. As per the insurance, the insured will only be able to claim the losses incurred by him. He will not be able to benefit monetarily as earning a profit through the insurance. The amount is paid for the losses, replacement of goods or vessel will not be done. The value of goods is done when the policy is taken. This is one of the reasons why the insured must be crystal clear about his trading. The actual cause for the damages or losses will also be determined so that there is no room for malpractice or foul play.

Insurance policy drafting is especially important and comes with experience. Traders learn from years and years of business experience what is to be expected and what risks are to be covered.

Technology has led to the increasing complexity in the structure of businesses. But there are few processes that remain the same. And catering to the increasing complexity of the businesses there are now some very flexible marine insurance policies available for every type of business.

If you are going to choose a marine cargo or hull insurance for the first time, then you should make sure that you understand the terms and conditions of each policy available for your business. If you are looking for marine insurance in Singapore, you should consider Allegiance Marine Insurance. They cover both Marine Cargo and Marine Hull insurances. You should look them up if you are serious about protecting your marine goods or properties. 

There are some situations where a marine insurance company might reject the claims for an insurance cover. Here are a few:

Discrepancies in the documentation

Each type of insurance policy might call for a different type of documentation procedure. If the details filled out are erroneous, or if there are some documents missing there are particularly good chances of the claim being rejected. The nuances of the policy should be understood well before claiming. As simple as it might appear at times it is always a good idea to get your claim forms checked by a professional insurance advisor before it reaches the insurance company.

Disparity in the understanding of the policy terms

Most cases the problem occurs because businesses choose an insurance policy that appears to be suitable in the first glance. It is always a good idea to seek the help of an insurance advisor to study every type of insurance policy offered by the company and then choose one whose terms would cover everything that the business needs. There might be several clauses that allow or deny the claim process, and these should be clearly understood before purchasing the policy. It would be a good idea to periodically review the policy terms and add essential upgrades when required.

Maintenance issues

Marine hull insurance covers the repair costs. But there are cases where the incurred cost might be due to the improper maintenance of the vessel. These are cases when the policy claim might be rejected because covering these costs might be an unnecessary burden for the insurance company. And this might also not be a part of the policy terms. Before a claim is being approved there would be checks conducted to ensure that there has been no compromise on the regular maintenance routines. Not having proper records of the maintenance activities done might also make it difficult to obtain the insurance cover.

Thus, in most cases the insurance claim would be a simple process provided the claim is genuine and provided that there are transparent documents available wherever required.