Download Role of Insurance in Exports.

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, explosion
Contact with water
Breakage
Accident
Derailment of conveyance
Theft
Pilferage
Non-delivery
Exposure 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 House
I I Chundrigar Road, Karachi
Phone: PABX: 241 2623–26, Direct: 241 6381, Fax: 241 2627
Adamjee Insurance Co Ltd
Suite No. 217, Eden Centre
43, Ghaus-ul-Azam Road
Lahore 54000
Phone:PABX: 756 0001-4, Dir: 757 1523, Fax: 757 6024
Premium Comparative - Class wise
Net of Reinsurance
AICL, #2 & #3
31 December 2005
(PKR Million)
CLASS
ADAMJEE
INSURANCE
PREMIUM
%
#2
PREMIUM
#3
%
PREMIUM
%
158
17
PROPERTY
1,014
26
438
11
MARINE
1,062
27
544
14
1,466
37
2,750
73
318
35
409
10
44
1
220
24
MOTOR
MISCELLANEOUS
222
24
Premium Comparative - Class wise
Net of Reinsurance
AICL, #2, #3
30 June, 2006
(PKR Million)
CLASS
AICL
PREMIUM
#2
%
PREMIUM
#3
%
PREMIU
M
%
PROPERTY
664
26
291
11
155
23
MARINE
572
22
318
12
148
22
1,030
40
1,903
73
201
30
294
11
26
1
157
24
MOTOR
MISCELLANEOUS