What is a Floating Policy in Insurance?

Imagine your business operates or dispatches more than 20 shipments each year, but insurance comes with endless paperwork stress and gaps in mid-voyage coverage?

Here is the solution! A floating policy in marine insurance, such as an all-in-one marine safety net for multiple consignments under a single plan. You can protect your reputation, business operations and financial loss with this policy that covers damage or loss resulting from calamities, theft, fire, or accident.

Uncover the secret of boosting peace of mind and streamlining business with the inclusions and advantages of the floating policy in marine insurance.

What is a Floating Policy in Marine Insurance?

Floating policy in marine insurance covers multiple shipments under a single policy over a particular policy period. This policy is specially designed for exporters, importers, traders or logistics with regular cargo shipment or movement operations. 

It is an adaptable safety net that offers flexibility, cost-effective coverage and reduces administrative hassle for all consignments transported. 

Floating policy in marine insurance example:

If you weekly import electronics via diverse ships, buy a floating policy. This floating policy in marine insurance can cover all your consignments seamlessly. Declare cargo and ship information per arrival and stay protected as it adjusts values per each dispatch till the policy limit is reached.

What Does Floating Policy in Marine Insurance Cover?

Damage or Loss during Transit: It features protection against damage or loss to goods during transit via inland waterway, rail or road.

Theft Coverage: This policy provides coverage for loss of goods due to pilferage or theft during transportation.

Cover Accidental Loss: Floater marine insurance policy protects against accidental damage resulting from overturning, collisions or derailment of transporting vehicles.

Protection against Natural Disasters: You can receive coverage against damage due to natural disasters such as earthquakes, floods and storms.

Explosion Coverage: This policy provides coverage against damage or loss to goods caused by explosion or fire during transit.

Storage Benefit: You can use this policy to even support temporary storage coverage for goods at intermediary locations during the transportation process.

What are the Advantages of a Floating Policy in Marine Insurance?

Run Business Smoothly

Floating policy in marine insurance provides comprehensive coverage by covering multiple shipments under a single policy. It offers business protection and a broader range of features tailored to their goods transportation needs, which ensures the shipment business runs smoothly.

Flexibility

The policy lets owners add multiple covers and adjust limits as their requirements change. Floating policy in marine insurance safeguards goods against damage, theft or loss. It is an affordable marine insurance solution that protects not just a single shipment but the whole portfolio with adequate coverage.

Continuous Protection

You can get protection for your entire consignment during shipment against theft, loss, and damage. Floating policy in marine insurance eliminates the need for multiple policies, which saves time and cost. This policy automatically covers every shipment, all dispatches, saving effort and valuable time without additional paperwork.

Affordable Rates

A Floating policy in marine insurance offers flexible payment options with competitive price ranges that help manage costs while facilitating essential coverage. This policy bundles all shipments under one plan and allows traders to enjoy competitive premiums.

What is Excluded from the Floating Marine Insurance Policy?

Inherent Vice: Damage, loss or out-of-expenses due to the nature of the insured subject or inherent vice. 

Insufficient Packing: Damages to goods due to mishandling and inadequate packing.

Leakage, Wear and Tear: Loss in volume or weight, ordinary leakage and wear and tear are not covered under this floating marine insurance policy.

War Risk: Damage, loss or expense from nuclear weapons or use of atomic or radioactive force is excluded from policy financial support.

Floating Policy Declarations: Details of Marine Insurance Plan

Order of Declarations: The Insured person can make declarations once the shipment occurs, including every consignment under the floating marine policy.

Subsequent Declarations: Make declarations through customary methods or endorsements on the policy. 

Unvalued Policy: The policy can be considered as unvalued if the insured forgot or failed to declare before arrival or loss. 

Honest Declarations: It declares the accurate value of goods and fixes errors in good faith.

Final Wording

A floating policy in marine insurance offers seamless coverage, ensures faster claims, and reduces administrative tasks. It is such a cost-effective and time-saving solution for every business involved in regular goods transportation operations.

Imagine large amounts and huge investments of goods involved in shipments. Whether you are an importer, exporter or logistics manager, choose a floating marine insurance policy. Buy a marine insurance policy from Bajaj General Insurance to streamline your marine insurance requirements. 

FAQs

How to buy a marine insurance policy online?

Visit the official Bajaj General Insurance website and enter your personal details along with shipment information such as cargo type, size, route, and volume. You will receive a customised premium quote based on your inputs. Once convinced, complete the online payment and instantly download your policy document.

Who needs to buy a marine insurance policy?

Traders shipping goods overseas, ship-owners, freight forwarders, marine contractors, cargo owners, and shipping corporations can buy a marine insurance policy.

What documents are required to file a floating marine insurance claim?

To file a claim, submit insurance policy documents, commercial invoice, bill of lading, packing list, survey report, and evidence of damage or loss.

What does a marine insurance policy cover?

A marine insurance policy covers damage or loss from risks such as piracy, theft, natural disasters, fire, etc.

What factors do I need to consider while renewing my marine insurance policy?

Consider any new risks, types of cargo, changes in shipping routes, and previous claims of existing policy to adjust coverage limits as needed.

Are there any factors that reject floating marine insurance claims?

Yes, floating marine insurance claims can be rejected if the loss or damage occurs due to inherent defects, improper packaging, or intentional misconduct.

Why do traders choose floating marine policies?

Traders engaged in frequent import and export activities prefer a floating marine policy because it does not require separate insurance for each shipment. This policy is cost-effective, automatically covers every shipment, and reduces paperwork burden.

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.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.