extra charges
Marine insurance extra charges are additional premiums that are charged by marine insurance companies to cover risks that are considered to be higher than normal. These extra charges can be applied to both cargo insurance and hull insurance.
Some common examples of marine insurance extra charges include:
- Overage extra: This extra charge is applied to vessels that are more than a certain age, typically 15 years or older.
- Under tonnage extra: This extra charge is applied to smaller vessels, as they are considered to be more vulnerable to accidents and losses.
- Non-classification extra: This extra charge is applied to vessels that are not classified by a recognized classification society.
- Non-approval extra: This extra charge is applied to vessels that are not approved by the insurance company.
- War and kindred perils extra: This extra charge is applied for coverage against war and related risks, such as terrorism and piracy.
- Strikes, riots, and civil commotions (SRCC) extra: This extra charge is applied for coverage against strikes, riots, and civil commotions.
- Dangerous goods extra: This extra charge is applied for coverage of dangerous goods.
- Temperature-sensitive cargo extra: This extra charge is applied for coverage of temperature-sensitive cargo.
- Perishable cargo extra: This extra charge is applied for coverage of perishable cargo.
- Deck cargo extra: This extra charge is applied for coverage of cargo that is carried on deck.
- Short transit extra: This extra charge is applied for cargoes with a very short transit time.
Marine insurance extra charges are typically calculated as a percentage of the base premium. The amount of the extra charge will vary depending on the risk factor involved.
Cargo owners can minimize marine insurance extra charges by:
- Choosing a reputable and experienced freight forwarder.
- Packing their cargo properly.
- Avoiding dangerous and perishable goods.
- Choosing a vessel that is classified by a recognized classification society.
- Declaring all risks to their insurance company in advance.
By taking these steps, cargo owners can reduce the risk of an insured loss and save money on their marine insurance premiums.