ADVANTAGES OF MARINE INSURANCE
In its most prudent form, insurance means protection against future loss. Marine insurance connotes protection against loss in ships, cargo etc. Is marine insurance really important in today’s world? The importance cannot be overemphasized as uncertainties are the realities of life. We shall further give credence to these need by itemizing the advantages of marine insurance.
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- Foreign business: Almost all kinds of goods conceivable are being imported or exported to other countries in ships. Shipping of goods and services are very rampant in today’s world hence the urgent importance of marine insurance in order to mitigate the losses might occur in the process. When the “things” in a ship are being insured, it gives the owner some sort of security and solace.
- International relations: marine insurance fosters international relations amongst the countries of the world. Through this imports and exports, international friendliness is established and maintained.
- Wider horizon: globalization and increased internationalization have given rise for businesses to operate across their national boundary. The market share is increased, the profit margins increases and the fame and goodwill of businesses are fostered. All these can be readily achieved through participating in international trade and ships and cargos are the chief means of conveying and realizing this feat. Therefore, marine insurance becomes a necessity.
- Better service: with the aid provided by insurance companies, a busy will only need to worry about other logistics as against losses. This fosters better service delivery.
- Product protection: peradventure something unpleasant happens, the insured products are protected.