If you are wondering what the “hullabaloo” about Marine Cargo Insurance is about, you are justified. As we have grown accustomed, it could be one of those short-lived trends propagated by an over-excited section of the so called “elite-public”. On the flip-side, it could be one of those few but important issues that have taken their sweet time rise to the national agenda, after all, we are only a budding economy. Right? By the end of this short read, you will judge for yourself which side of the relevance coin it falls.
In plain terms, Marine Cargo Insurance is a policy that protects you from financial strain that could arise from damage or loss to your cargo during transit from the place of origin to its final destination. To simplify this further, when your goods are on their way, you can’t do much to avoid something unfortunate happening to them. In case it does indeed happen, you stand to incur financial loss and distress. It is this risk that Marine Cargo Insurance covers you against, so that in case it happens, you are compensated as opposed to taking the hit.
From the description above, it should be clear that Marine Cargo Insurance isn’t actually an alien concept. You have probably paid it for your imported car. But what you may have been oblivious to, is the fact that the Marine Cargo Insurance you paid was a foreign one, not a local one. In other words, you paid premium to a foreign insurance company, not a local one. Therefore, in the unfortunate event of a loss, it is the foreign insurance company to compensate you. This means that you would have to prepare a claim and send it abroad to have your compensation effected if approved.
It is not uncommon for us to write off local products and services in favor of foreign ones but does a foreign Marine Cargo Insurance policy offer you better protection than a local one? Again the answer is entirely up to you but laying down the facts is on us. Firstly, when it comes to claiming for compensation, with a local Marine Cargo Insurance policy, you go through the local channels and guidelines while with a foreign Marine Cargo Insurance policy, you have to first acclimatize yourself with the channels and guidelines of that land. Secondly, because a foreign Marine Cargo Insurance Policy isn’t under the regulation of the laws of your country, in case you have to seek redress, you have to do so as a foreigner through a foreign regulator but with a local Marine Cargo Cover, you can seek redress directly through our local regulator: The Insurance Regulatory Authority (IRA). It is also interesting to note that getting foreign Marine Cargo Insurance has always been way easier and more convenient than getting local Marine Cargo Insurance.
By now, your mind should be made up on the two things at hand: Is the fuss about Marine Cargo Insurance worth it? Which Marine Cargo Insurance offers you better protection – local or foreign? The facts are now bare for you to opine from an informed point of view. But while the ball of opinion is in your court, the new requirement isn’t! Whether you are a business importer or a casual importer, effective 1st July, 2022, you are now required by law to have a local Marine Cargo Insurance Policy for all incoming cargo.