Reinsurance Coverage of Saman Re for Marine and Aviation Insurance
In today’s business world, the growth and complexity of various factors involved in business processes demand a special mechanism. Insurers play a critical role in creating ease and trust in these processes, providing peace of mind to commercial parties. Fields such as cargo, vessel, and aviation insurance require a great deal of expertise and experience due to the possibility of catastrophic damages. Public opinion also views air and marine events with a special sense of importance, which makes these insurance fields even more crucial.
Cargo Insurance
Cargo insurance has been around for quite some time, dating all the way back to 1600 AD. The purpose of this sort of insurance is to shield the policyholder from any potential loss of goods while the cargo is being transported between two locations. With cargo insurance, you can rest assured that your goods will be covered should any unforeseen circumstances arise during the transportation process.
Types of Cargo Insurance
Different types of transportation covered by Cargo Insurance include:
- Land Transportation
- Maritime Transportation
- Air Transportation
To ensure safe transportation, it is important to determine the necessary insurance coverage based on the origin and destination. Import, export, or transit types of cargo insurance can provide protection against damages and unexpected incidents.
Risks Covered by Cargo Insurance
In cargo insurance, it’s important to consider that not all goods are equally exposed to risks, and insurers can’t force policyholders to cover all risks. That’s why insurance companies use three sets of conditions (clauses) for goods transportation insurance: A, B, and C.
Condition set A covers all risks and incidents, except for those listed in the exceptions. Sets B and C only cover explicitly mentioned risks and incidents. Generally, set B is more comprehensive than set C.
Saman Reinsurance Company offers reinsurance coverage for domestic and international insurance companies for all transportation methods and any set of conditions, in both optional and contractual formats.
Vessel Insurance
It’s fascinating to learn that ship transportation is actually thousands of years old. Back then, it was mainly used to transport cargo or passengers, but as time went on, it became a necessity for both the goods owners and the ship owners to prevent losses. This is how the first type of marine insurance came about, which was used to protect against losses when engaging in seafaring. It’s interesting to note that this practice began over 3000 years ago in the Mediterranean Sea. In the late 17 th century, a group of London merchants made a decision to take on some of the risks that cargo and ships faced. They would receive an insurance fee from the owners of goods or ships in return. This marked the beginning of the formation and growth of Lloyds.
As trade connections between countries grew, seas practically became highways of world trade due to the low cost of sea transportation. However, sea voyages always come with risks that threaten the ship and its cargo, so marine loan and general loss methods were used to deal with these risks.
Over time, marine insurance became more common and one of the types of marine insurance is the insurance of marine vehicles, which are used for transporting goods and passengers. These insurance policies cover a range of things including hull, machinery, equipment, costs, benefits, and liability to third parties. It’s interesting to note that these policies are issued in two ways: for a certain period or based on travel for a certain origin and destination.
Types of Vessel Insurance
- Hull & Machinery
When it comes to insuring vessels and ships, one of the most important covers is marine hull and machinery insurance. This insurance is issued in accordance with the standard clauses of the Institute of London Insurers. Depending on your needs, you can use any of the standard clauses available:
- Clause 280 (all risk) covers total damage, partial damages, 3/4 collision liability, general loss, and salvage cost.
- Clause 284 provides coverage for total damage, 3/4 collision liability, general loss, and rescue cost.
- Clause 289, on the other hand, covers total damage and salvage cost. For fishing vessels.
- Clause 346 (all risk) provides coverage for total damage, minor damages, 4/4 collision liability, general loss, and salvage cost.
It is also possible to purchase war risk coverage in the form of Clause 281.
- Liability Insurance for Owners Against Third Parties (Protection and Indemnity (P&I))
As a vessel owner, it’s important to be aware of liability for damages to third parties. Clause 344 of the Institute of Insurers of London can cover the liability for a range of risks, including:
- collisions with fixed and moving objects in the sea
- collisions with other vessels
- wreck removal
- marine pollution
- casualties of the crew
- life accidents of third parties.
This clause offers a lower liability limit than can be purchased in P&I policies, making it an important consideration for vessel owners.
The risks covered by Clause 344 include:
- fire, explosion, lightning, earthquake, volcanic eruption
- marine accidents and storms
- running aground or hitting a rock
- collision with other vessels or objects
- dealing with coastal equipment
- boiler explosion and shaft failure
- rescue costs and public losses
- liability to third parties (both financially and personally) under Clause 344.
Aviation Insurance
Airplanes are one of the most convenient and quickest ways to travel between cities and countries, but they are also exposed to significant risks. Based on the law of large numbers and insurance principles, it’s common knowledge that the premium paid by a lot of people will be used to cover the damages for a few individuals. The aviation insurance industry is different from other fields in that both the number of insurers and premiums collected are limited while the potential risks for airlines are very high. This makes it nearly impossible for an insurer to cover all the potential risks associated with an entire airline fleet or even a single aircraft. This is why obtaining insurance coverage in this field is even more crucial than in other insurance fields.
Types and Risks Covered by Aviation Insurance
There are a wide range of insurance policies available in the aviation industry, and the policies issued depend on the specific coverages desired by the insurer. Due to the customizable nature of aviation insurance, there is no specific or singular division for types of aviation insurance policies. Insurers can tailor their coverage to specific needs and risks Some of the risks that can be covered by aviation insurance include but are not limited to:
- Aircraft hull all risks including war risks
- Aero-engine breakdown
- Hull deductible
- Liabilities for financial and life losses of passengers and crew
- Liabilities for financial and life losses of third parties
- Crew loss of license
- Excess legal liability
At Saman Reinsurance Co., we are committed to providing comprehensive coverage for all types of aviation risks. We work closely with direct insurance companies to accept offers for all types of aircraft and helicopters, as well as air fleet and other related risks. Our team of experts relies on the technical knowledge to develop customized reinsurance solutions that meet the specific needs of our clients. We provide a range of options to ensure that your aviation risks are fully protected; Additionally, we offer custom coverages to address unique risks and challenges that may arise.
