Accidents and damage to goods in transit can happen at anytime and result from a variety of causes. Natural calamities such as stormy seas can delay and damage goods sent by ship. Plane crashes and airport delays can cause problems to goods being transported by plane. In fact, there are nearly as many ways that shipped goods can be damaged as there are goods shipped.
Marine and transportation insurance cannot calm stormy seas but can certainly calm the fears of exporters and importers. In the unfortunate event that goods are lost or damaged, compensation can be paid and you can replace or rebuild what has been lost and carry on doing business.
Reasons for choosing domestic insurance companies
1. To help reduce losses that may result from currency exchange.
2. Enables clients to negotiate on coverage conditions and to get lower or equal premiums when compared to those offered abroad. This is because insurance companies in foreign countries often lack the essential local port and maritime knowledge and conditions in which Thai businesses operate. Coverage ends at the destination port specified in the underwriting.
3. Import taxes can be deducted because the Customs Department usually uses Costs, Insurance and Freight (CIF) rate to calculate import taxes. This means that importers who use domestic insurance companies are not only able to pay lower premium charges, but also can take advantage of the lower tax rates when based on the CIF rates.
4. In case of loss or damage to goods, the insured persons can contact their insurance companies directly when they want to make payment claims. This can save costs and more importantly, for a customer with a business to run, save time. Customers who buy insurance from companies based overseas often have to wait for several months before their claims are processed and approved.
1. Can also benefit from reduced losses that come with currency exchange.
2. Under the CIF product-sold category, when losses are sustained in the destination country, exporters are able to help purchasers make payment claims to insurance companies. Although the exporters themselves may not receive financial gain from this, it is good to maintain good relations with all-important customers and clients and leaves customers with a positive image of your company long into the future.
3. Under the CIF product-sold category, insurance covers the transportation of exporters goods from factories or warehouses to container ships without needing an insurance premium payment. Under the FOB or C&F product-sold guidelines, exporters are responsible for all transportation risks and have more expensive expenses pertaining to insurance.
Marine and Transportation Insurance can be divided into 2 main categories:
1. Marine Cargo Insurance insures transportation by land, water and air as well as by parcel post, which again can be divided into 2 types:
1.1 Inland Transit Insurance
1.2 Overseas Transit Insurance of three types:
Institute Cargo Clauses (A)
Institute Cargo Clauses (B)
Institute Cargo Clauses (C)
2. Marine Hull Insurance covers losses and damages of hulls, machinery and shipping equipment damaged by storms, vessels running aground, fire and shipwreck.
For further details, please contact Dhipaya Marine Insurance Department
Tel : 0-2239-2200 # 2201, 2202, 2222