If you’re looking for belt-tightening measures, cutting your marine insurance premiums is not an option. The reason, said Susan Bester, marine marketing manager of Prestmarine, is that you only have two choices. Either insure at the quoted premium for your goods, or don’t insure – the latter being an ill-advised move with the risks attached to the international movement of cargo. Any attempt to save on quoted premiums by lessening the sum insured is not feasible the way the marine insurance industry works, said Dave Keeling, joint MD of UMS and committee member of the Association of Marine Underwriters of SA. “Unlike with car insurance, where you can insure the vehicle for whatever amount you want – and pay for that – marine insurance quotes are worked out to a very strict formula,” he told FTW. “In very basic terms, we will write an annual, open policy which would include a basis of valuation – effectively a formula for calculating the sum insured."
Marine insurance offers no cost-cutting options
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