This document is designed to give you a brief overview of your rights and responsibilities under the category of coverage known as Ocean Marine Insurance.
There are many types of insurance. Property & Casualty insurance covers commercial buildings, automobiles, and the liability businesses and individuals have for incidents that may occur on their property, premises, or through some unintentional act or occurrence. Life, Accident and Sickness insurance covers human beings or groups. An agent must be licensed to sell P&C or LAS insurance.
Ocean Marine is a type of insurance. Freight Forwarders offer Cargo Insurance to their clients through "Ocean Marine" policies.
An Ocean Marine policy can cover goods moving by air, sea, land or any combination thereof.
Because goods covered by Ocean Marine cargo insurance may travel through many different countries or governmental regions, it is impractical for each state to impose its own special terms or conditions, as this would hamper the free and rapid movement of goods.
Because of this, Ocean Marine insurance is usually unregulated by governmental agencies.
Ocean Marine insurance is governed exclusively by the Standard and Special Conditions of the insuring contract, and by the wordings of applicable international treaties such as those from the International Chamber of Commerce. Because Ocean Marine insurance is unregulated, in most jurisdictions, Forwarders who market Ocean Marine Cargo insurance need not be licensed by authorities as other insurance agents are.
But, as with any service offered to the public, a Forwarder or anyone who offers Ocean Marine insurance incurs legal obligations to the Insurer, to the person purchasing the insurance, and to any carrier involved in the movement of the goods insured.
By offering Cargo insurance to your clients, you are helping them Manage Risk.
Ocean marine insurance is contract law:
As with any legal contract, four essential elements must be satisfied for cargo insurance in force:
1. Agreement (There must be an offer and acceptance)
2. Consideration (Each party must give something of value)
3. Competent Parties (Parties making offer and accepting must be legally capable of doing so)
4. Legal Purpose (Valid contracts must be for a legal purpose and consistent with public policy)