Details in insurance policies are among the most elements that very few insurance buyers leave to their insurers only to handle. Yet, when it comes to servicing claims, insurance buyers are the most adamant in following up on these details. It, therefore, makes the most sense to exercise the same due diligence in ensuring these details are as correct as they should when filling your marine insurance policy documents. It is good practice also to involve your company lawyer to understand the finer details in your insurance policy better before you append your signature for consent. With that in mind, you will appreciate why you should always work with an insurer that is willing to take you every detail of your insurance policy.
That should also include mentioning the areas that the policy will not cover. Additionally, they should be open on what could lead to a rejection of your hull and machinery or any other marine insurance policy. To highlight but a few of the most common instances in this latter case:
Confirm items that the policy covers
Most insurance policies will only state that they cover loss and delays. What you could miss on that is that your policy could not be clear on what nature of consignments it covers. If the items are prone to contamination while in transit, your insurer may fail to service your claim if the policy does not indicate precisely that. Typically, if the cause of the damage is inherent to the nature of shipments, most marine policies will not cover that.
Ensure that you package right
You should follow confirming the nature of your consignment by using appropriate packaging methods for your items. The cargo will traverse long distances in high seas. It, therefore, is prudent that you confirm that they are in the correct packaging materials, and you have secured them accordingly.
Having a marine insurance policy, be it hull and machinery or fixed P&I, does not necessarily guarantee that you will get full compensation on your claims. Some instances may have your insurer reject your insurance claims. Typically, most of these instances are from the insurance buyer not exercising due diligence when filling the insurance documents. Other times, you could forfeit your claim’s compensation if you picked the wrong policy for your type of business. Some other instances are if the cargo or vessel damage is from using improper packing and loading procedures. Most of such avoidable cases can limit the extent to which you can go with receiving full compensation on your insurance claims.
Policy claims rejections are typical cases in the marine industry. But, ensuring you have played your part well, and always, can save you the cost to have to cover for the damages yet you have dutifully been paying your insurance premiums. The above are but a few of the common instances to check. If you don’t know what else could cause rejection to your policy claim, inquire from your insurer. Follow that with taking immediate measures to address these
