What Does Perils of the Sea Mean in Marine Insurance?

Learn about this shocking fact: even calm seas can hide perils of the sea. Hidden rocks or underwater reefs can cause serious damage to ships even in calm weather. Nowadays, modern technology has reduced risks as satellite tracking and radars predict weather conditions at the sea but still, cyclones and high waves may cause damage to the vessel and cargo.

So, if you are wondering what are perils of the sea in marine insurance, you are at the right place. This guide explains what does perils of the sea mean and how to stay protected against them. Bajaj General Insurance offers marine insurance policies to stay protected against such perils, so that you can undertake your voyage confidently.

What Does ‘Perils of the Sea’ Mean?

‘Perils of the Sea’ are unexpected accidents or natural events that can occur when goods are being transported. Such perils of the sea are not ordinary situations, but they happen all of a sudden and no one can predict or prevent such perils easily. However, the occurrence of such events causes damage to ships or cargo.

Marine perils include events like heavy storms, lightning strikes, sinking due to rough weather, etc. These are the risks that sailors and ship owners face while transporting goods over the ocean.

Do you know why this term is very important in marine insurance? It is because understanding perils of the sea helps in gaining a knowledge of which losses are covered and which are not.

Suppose a ship is damaged due to wear and tear or because the ship was not maintained properly, then it is not considered as a peril of the sea. But if the loss is due to some natural danger at the sea, which is beyond human control, it falls under the category of perils of the sea and is covered by insurance.

So simply, perils of the sea are natural dangers or unexpected events that can harm your ship or cargo while they are at the sea.

Examples of Perils of the Sea

The following are the examples of the perils of the sea:

1.     Storms and Cyclones:

Storms and cyclones are one of the most common perils of the sea. When a ship faces a severe storm or cyclone in the ocean, strong winds and giant waves can damage the vessel or wash away cargo.

2.     High Waves and Rough Seas:

Sometimes, even in the absence of a storm or cyclone, the sea may become very rough and high waves can hit the ship. It may cause cracks in the vessel damaging it.

3.     Collision with Another Ship:

Suppose your ship accidentally strikes with another ship or if two ships crash into each other in the middle of the sea due to poor visibility or some other navigation error, it is a peril of the sea.

4.     Sinking or Capsizing:

Another major peril of the sea is: A ship may sink or turn over because of a sudden accident, powerful waves, or due to some structural failure during bad weather. Such a loss damages the vessel and causes loss of cargo as well.

5.     Lightning Strikes:

Thunderstorms and lightning in the sky can strike your ship and it may cause damage to electrical  systems. It may also cause fire and damage the ship.

6.     Stranding or Grounding:

Sometimes, the vessel can strike against rocks or get stuck at shallow seabed, and can cause severe damage to the hull and cargo. This is also a peril of the sea.

7.     Sea Water Damage:

Sea water can enter the ship even if there is a little leak and can spoil the goods. Goods like grains, electronics, etc. are immediately damaged.

Such perils are covered by marine insurance policies. Hence, a marine insurance policy is important for ship owners and traders when they undertake the transportation of goods.

How to Stay Protected Against Perils of the Sea

Even though the natural dangers while travelling at sea are risky, it is possible to stay protected against these perils and reduce losses.

1.     Buy Marine Insurance

A marine insurance policy covers the damage caused by the perils of the sea like storms, sinking, collisions, or theft. This means that if something unfortunate happens during the voyage, the insurance company will compensate you for the financial loss.

2.     Ensure Proper Maintenance of the Ship:

Before your vessel starts its voyage or journey, always check if the ship is seaworthy because a strong vessel can handle rough weather and can stand against any damage. To ensure your ship is seaworthy, always maintain your ship and take care of it.

3.     Follow Weather Forecasts:

Before your vessel starts its voyage, check weather forecasts and the condition at the sea. If it is expected that the sea is rough or a storm is predicted, you may delay the journey to prevent any weather related mishap.

4.     Hire Experienced Crew and Captains:

Skilled crew and captains are well trained to handle emergency situations. They can navigate safely even during a bad weather and protect the cargo on the sea.

5.     Use Proper Packaging for Cargo:

Goods should be packed properly so that they are not affected by moisture or do not break or get damaged due to rough handling. Water-resistant containers help to avoid losses in case there are leaks.

6.     Follow Safety and Navigation Rules:

If you install modern navigation tools like GPS and radar, it will help to avoid collisions or other accidents. Also, follow maritime safety laws and communicate with coastal authorities.

7.     Plan Your Route Wisely:

Some routes are well known for piracy or adverse weather. Do not travel on such routes and properly plan in advance to reduce the danger of perils of the sea.

Conclusion

To sum up, perils of the sea are the occurrence of unexpected or extraordinary events at the sea that can cause huge damage to your vessel and cargo. But, remember to stay protected against such perils, it is important to purchase a marine insurance policy from Bajaj General Insurance. Start your journey confidently, so that you do not suffer any loss.

FAQs

1. What are perils of the sea in marine insurance?

Perils of the sea are extraordinary events such as storms, cyclones, collisions, etc. that are beyond normal sea conditions and the occurrence of such events can cause loss to the goods or the vessel.

2. How are perils of the sea different from marine perils?

Perils of the sea are a subset or part of marine perils. Perils of the sea focus only on extraordinary events at sea. On the other hand, marine perils include risks like piracy, fire, or jettison.

3. Is ordinary damage from sea waves a peril of the sea?

If damage is caused due to ordinary sea waves or predictable seasonal weather, then it is not a peril of the sea.

4. How does Bajaj General Insurance protect against the perils of the sea?

Yes, Bajaj General Insurance offers marine cargo insurance that includes perils of the sea under its coverage.

5. Is piracy considered a peril of the sea?

Piracy is a marine peril, but it is not classified under perils of the sea and is covered as a separate risk.

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***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.