A simple ckeck-list
is all it takes
Marine insurance has a history going back several hundred years, giving underwriters more than sufficient time to perfect their business, says Rennie Murray's Tony Edwards. Most modern underwriters are shrewd, and well informed risk takers.
Edwards says that a common misconception in the import/export community is that marine insurers never pay claims, but rely on small-print and technicalities to repudiate them. The reality is that a marine insurance policy is a contract, and contains conditions and exclusions.
Insurers today also expect and demand a proactive approach to loss prevention and control, he says. A simple example is the packing of cargoes for import and export. Attempts may be made to save by using sub-standard packing materials. Any reputable surveyor's report will always include extensive comment on the nature and quality of the packing materials.
He says the best advice on proactive risk management is to act with common sense and as though uninsured. In the majority of cases, importers and exporters are the true experts on their cargoes, and are well aware of the sensitivities involved, including how best to pack, handle and transport their product.
Pre-shipment inspections and discharge supervision services are available from surveying companies, he says, adding that their use demonstrates a proactive approach.
Importers/exporters would be well advised to consider their choice of road haulier very carefully, he warns. Many allow their forwarding agents carte blanche in the appointment of the road haulier, refusing to take an active interest in this department. The result is that the cheapest possible option is often taken, and the old adage applies: you get what you pay for.
Rennie Murray's advice is to get involved. Find out the road haulier's attitude to loss prevention. Are thorough background checks conducted on staff? Do the vehicles travel in convoy? Are escorts provided in known danger areas? Are the vehicles fitted with cellular or satellite tracking devices?
Rennie Murray has a simple 'checklist' available with regard to risk management and loss prevention, while surveying companies, marine underwriters and specialist brokers can advise import-
ers/exporters on these measures.
The question is not whether you can afford to implement such strategies, but whether you can afford not to, says Edwards.
