NMU helps members explain to clients why it’s important to take control of their marine cargo insurance arrangements, rather than relying on cover that might be provided by others in the supply chain.
Benefits for members:
- direct access to local, specialist underwriters
- recognised service excellence
- full-cycle electronic trading via Acturis
- PDF document production – delivering contract certainty
- enhanced commission levels
Benefits for policyholders:
- a no-nonsense wording that can be tailored to individual needs
- online cargo insurance certificates
- in-house risk management expertise
- A-rated Lloyd’s security
The core cover can be complemented by various extensions, including:
- exhibitions and demonstrations cover
- cover for storage outside the ordinary course of transit (‘stock throughput’)
- first-loss terrorism cover for static exposures
- cover for positioning and erection of machinery
Overcoming Objections and Taking Control
Some clients may presently choose not to insure because their suppliers arrange insurance on imports or because they believe that carriers will bear responsibility for any loss or damage in transit. There are down sides to both strategies, and clients should be encouraged to take control of the insurance arrangements and be aware of the limitation of carriers’ liabilities.
The information about the cargo exposure needed for underwriters to offer a quotation is relatively straightforward. Although a proposal form is not required, this aide memoire can be useful in ensuring that all the relevant information is captured, and provides an easy way to present the risk to insurers.
Handling Cargo Claims
Although seemingly quite daunting, reporting and progressing marine cargo claims is relatively straightforward. Making sure policyholders get the right advice at the first notification of loss is vital. Although a claim form is not mandatory, it can serve as a useful reminder about:
- Noting shortage or damage on delivery receipts
- Making written claims against third parties who are responsible for loss or damage
- What documentation is needed
In requesting documentation to support claims, insurers are looking to establish (i) what happened, (ii) who was responsible and (iii) how much should be paid. The first of these will be recognised as proximate cause, and the last as indemnity; the second links to both cause and subrogation rights. Each of the supporting documents requested by insurers helps with one or more of cause, quantum and recovery.
Protecting the Loss Ratio
More often than not, a third party carrier will be responsible for the loss of or damage to goods during transit, and a certain amount of compensation will be due from them, so it’s important that they are held liable in writing as soon as possible. However, since carriers’ legal liabilities are unlikely to amount to the full value of a policyholder’s claim, they are generally pursued by insurers under subrogation, once claims have been paid.
Policyholders should not delay reporting claims to insurers while waiting to find out how much a carrier will (or will not) pay.
NMU is one of the few specialist marine insurers to have its own, in-house risk control team. As well as conducting surveys and giving training, the risk control team also publishes helpful fact sheets, including: