Marine insurance caters to insurance policies pertaining to the transportation of good through a marine medium, i.e. water. This is a difficult process which isn’t entirely in the hands of humans. It is an unpredictable process that is an amalgamation of man-made as well as natural factors. Due to this nature, it is important to have insurance for your goods that will be transported through this channel in order to have protection and some sort of compensation.
There are several factors that can affect our cargo being transported including pirates, navigational errors as well as weather conditions. This is where marine insurance steps in and gives coverage to all the risks faced by ship owners, cargo owners as well as the other intermediaries involved in this business process.
There are several types of marine insurance present and hence before buying and insurance policy from an insurance company in Pakistan it is important to understand the various kinds present and which will be best for you.
1.    Machinery and Hull Insurance:
Through hull insurance any mishaps that will occur will be covered as this is the main aspect of the ship. Besides this owners also take machinery insurance to cover the machinery as both combined together will ensure coverage for the whole ship.
2.    Liability Insurance:
Through this coverage, the ship owner will be covered for any circumstances that are beyond his control such as pirate attacks or a crash or collision.
3.    Freight Insurance:
Insurance will also compensate for any loss in freight or any damage that has been caused to it. The shipping company will not be held responsible for this.
4.    Marine Cargo Insurance:
Cargo that is ought to be transported through the ships can be subjected to mishandling which can lead to a damage. Hence, they also need protection and that is where marine cargo insurance steps in and covers for them.
Besides the various types of marine insurance policies being available, it is also viable to note what all is covered under it. Buyers should be aware of what they will be covered for in marine insurace. Following below are the factors that will be covered for.
•    An explosion, a fire or sinking.
•    Any loss incurred in loading or offloading the cargo.
•    When an earthquake or lightening occurs.
•    Overturning or collision of the vehicle.
•    Natural disasters and calamities.
•    Total loss coverage
How does marine insurance work?
In order for you to conduct your business peacefully marine insurance provides you with various insurance policies. The question is, how do these marine insurance policies work?
•    Firstly you need to assess and analyze your requirements in regards to the risks you think may occur.
•    Once this is done, compare insurance plans from various companies according to your requirements.
•    After you select the plan bring in the documents necessary for the purchase and buy it.
•    If you need to claim it, then fill in the form and submit it. if the claim is valid and deemed fit you will be covered or else it will be rejected.