Claim case sharing
The importance of packaging and marking in marine cargo insurance
Packaging and marking play a vital part in marine cargo insurance to ensure that you have better protection with enhanced efficiency.
Packaging is one of the major factors that affects the insurance premium. Proper packaging can minimise risk exposure and help you to maintain a good claim history. With a good claim record, your bargaining power as a customer in terms of premium will be higher and the insurance company will offer a more favourable premium for the marine cargo insurance. Apart from saving on premiums, you can also avoid punishment for the delay of cargo delivery to the consignee due to the detaining of goods by the customs caused by improper packaging.
Marking is an important part of packaging, providing information about the consignee, transport route and quantity. The following marking is commonly used:
The first row is the name of the consignee. For safety reasons, secret code can be used (i.e. ABC). The second row is the final destination of the goods (i.e. FRANKFURT). The fourth row is the port for unloading the goods (i.e. HAMBURG). The last row indicates the case number and the total number of cases for the whole lot (i.e. the 1st case out of 200 cases). "VIA" should mean "by the way of" (i.e. Frankfurt via Hamburg).
To conclude, proper packaging and clear markings not only help you to save cost, but also facilitate the process of transportation.