How is Marine insurance premium calculated (1)

Factors Involved in Calculating Marine Insurance premium

The premium of a marine insurance plan depends on the following factors

Marine insurance premium calculation

The nature and value of the goods which are being transported

Applicable freight incurred for transportation

Any inherent risk in the goods

The route being taken for the voyage

The type of vessel used for transportation and its construction

The destination of the goods

Political risks, riots, commotion or unrest which would impact the delivery of goods

Natural calamities which might occur – Floods, high tides, etc.

 

 

The premium of a marine insurance policy varies on a case to case basis and is not universal.

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