What Is Marine Insurance ?
Marine insurance refers to the type of insurance coverage that protects business firms and cargo owners by covering loss or damage to cargo, ships, vessels, goods etc. There are different types if marine insurance such as cargo insurance, hull insurance, freight insurance, liability insurance etc. It safeguards global trade and promotes business stability.
Why Marine Insurance Essential ?
The following points highlight the Key importance , benefits or significance of marine insurance.
1. Marine insurance facilitates global trade
The volume of trade through the sea have tremendously increased, and so has the risk of loss at the sea. Therefore, marine insurance plays significant role in facilitating the global trade by minimizing the risk thereof.
The volume of marine insurance business is an indicator of the economic prosperity of a country. There is a close link between a sound marine insurance market and industrial development.
Marine insurance provides peace of mind to the businessmen by meeting their financial losses from marine risks. It helps to reduce tension and fear, and takes away anxiety from the businessmen and managers who are in the international business. As a result, they are able to operate their business without any tension, fear, anxiety.
4. Marine insurance improves quality of life
Marine insurance helps control losses that may arise from the marine risks. As a consequence, people are encouraged to engage more in international business. This means more investments, more jobs, more production, more income and more consumption of goods and services which help to improve the people's quality of life.
Marine insurance helps businessmen to recover funds from a loss. This keeps the business going, jobs are not lost, and goods and services continue to be sold. The social benefit of this are that people do not loose their jobs and their sources of income are intact. This contributes to the unhindered growth of the national economy.
2. Marine insurance ensures economic property
The volume of marine insurance business is an indicator of the economic prosperity of a country. There is a close link between a sound marine insurance market and industrial development.
3. Marine insurance provides peace of mind
Marine insurance provides peace of mind to the businessmen by meeting their financial losses from marine risks. It helps to reduce tension and fear, and takes away anxiety from the businessmen and managers who are in the international business. As a result, they are able to operate their business without any tension, fear, anxiety.
Marine insurance helps control losses that may arise from the marine risks. As a consequence, people are encouraged to engage more in international business. This means more investments, more jobs, more production, more income and more consumption of goods and services which help to improve the people's quality of life.
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5. Marine insurance provides social benefits
Marine insurance helps businessmen to recover funds from a loss. This keeps the business going, jobs are not lost, and goods and services continue to be sold. The social benefit of this are that people do not loose their jobs and their sources of income are intact. This contributes to the unhindered growth of the national economy.
The Vital Role Of Marine Insurance In Short
* It mitigates financial risks and prevents businesses from losses
* It supports global supply chain resilience
* It is flexible and covers wide range of risks
* It encourages investment in shipping infrastructure
* It helps the firms to recover from disruption that ensures business continuity
