JOY ORLEK THE RECENT MSC Napoli disaster has served as a marine insurance wake-up call for the industry. It underscores the fact that major disasters at sea do happen, says marine insurance specialist Clive Suter of Cape Town-based JPS Marine, and raises several important questions: œ In the absence of marine insurance cover what level of gout of pocketh contribution might the shipper have to make towards salvage costs or general average? œ Is there gautomatich marine insurance on every insured shipment prior to arrival at destination? œ Is the insured value of the goods sufficient to cover all our potential losses? œ Is the cover sufficient in extent? œ Has the shipper thought about the consequences of any loss of profits or trade disruption following such a casualty? gThese are all important questions and proper care should be taken to explain to clients what their policies cover and how they work.h Suter has carved a niche in the Western Cape marine insurance market, and while a large portion of his business involves the fruit industry he will tackle any risk involving the movement of goods by whatever mode of transport. gIncreased traffic from the Western Cape into West Africa has seen the development of new growth areas,h says Suter, who expects the trend to continue. He believes that long-term personal relationships are crucial, particularly in this industry, allowing for a firm commitment from insurers through good times and bad over the long haul. gWhile current marine cargo insurance rates remain relatively soft, changes for the sake of shaving off a point or two now may result in disappointment later should the tide turn when increased levels of rating required then prove onerous.h
