Marine Insurance Premium

The premium, which must be paid to an insurance company in order to affect insurance cover, is expressed as a percentage of the value declared for insurance purposes. The cost of the premium amount will increase or decrease in accordance with the insurer’s estimate. The insurer bases his premium on the following:

  • The nature of the goods
  • The mode of transport of the goods
  • The value of the goods
  • The packing (whether packed or unpacked, material used for packing)
  • The journey along which the consignment will travel (transshipment)
  • Any inherent risks the products may possess
  • The destination to which the goods will travel
  • Any political risk, or strikes riots and civil commotions that could affect the delivery of the goods
  • The extent of cover the assured is requesting, for example, Fortuitous risk catastrophe risk and risk cover which is outside of the control of the cargo owner such as the theft and pilferage
  • Annual volume of the business of the client
  • Claim experience of the client/commodity
  • Insurance Market