UAL AGM focuses on Marine Insurance

Marine Insurance is considered the father of insurance, as it is the oldest type of Insurance, said Assistant General Manager (General Insurance) Union Assurance Ltd, Udeni Kiridena speaking on "Important aspects of Marine Cargo Insurance in International trade".

He was addressing a seminar on Managing Business Risk Strategically through Insurance organised by the International Chamber of Commerce Sri Lanka.

Open cover is the most common type of policy used by customers today to obtain Marine Insurance for their goods. The other types of policies available include the floating/open policy and the voyage policy. Kiridena said that floating/open policies are renewable annually subject to a provisional premium while a voyage policy is taken for a single voyage for transportation of goods from one point to another. Regular importers and exporters could obtain an Open Cover so that their goods are 'held covered' as per the open cover agreement. There are three parties to this agreement, the Insurance Company, Customer, and the Financial Institution (Bank).

Kiridena said that the main categories for which Marine Cargo Insurance could be obtained include imports, exports, inland transit, goods in transit, produce in transit and stock throughput. Marine Cargo is basically covered by Institute Cargo Clauses A, B, or C which are subject to English law and practice. Insurance coverage is for transportation of cargo by sea, air, land, postal or courier delivery and even for personal carrying of gems and gem studded jewellery.