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
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.