What Marine Insurance is:

Marine insurance is that branch of insurance which provides coverage of risk to the goods of various description when they are in the process of transportation from one place to another. Goods may move from one country to another or within the country, they need insurance protection. Before we proceed further, let us see what Marine Insurance is: Marine insurance is a contract between the insurance company and the owner of goods. Undertaking under the contract is that if the goods suffer loss during transportation from an insured peril, the insurance company will make good the loss, subject to terms and conditions of insurance contract.

Why Marine Insurance should be done?

Once the goods are moved out from the warehouse of the seller, they are no more in the custody of the seller or the buyer. They are rather in the hands of a third party called the carrier. During the transit loss can arise from:

Fire, explosionContact with waterBreakageAccidentDerailment of conveyanceTheftPilferageNon-deliveryExposure to these risks and the fact that the goods are in possession of a third party enhances the chances of loss.

Who should insure?

Now the question arises who should take cover. The answer is obvious; any one who own the goods the reason being that he would suffer a financial loss if the goods are lost or destroyed. Another party who is in a similar position is the bank. Most, if not all, international transactions are financed by bank through L/C. Under L/C mechanism the bank holds all the documents of title which are not released to the consignee unless the bank is paid for the same. If the goods are destroyed before delivery to the consignee, the documents would not be retired and the bank will be a looser. It is to face such an eventuality that the bank requires insurance protection.

What is good in insuring?

The affect of insuring the goods is that the

element of risk of loss is transferred from owner

of the goods to the insurer. Being free from the

threat of loss, the producers and traders are able

to concentrate on their business activities. Thus

marine insurance acts as a partner who stands

behind the owners of goods in the event of a loss

and allows them to concentrate on their main

business fearlessly.

How Marine Insurance is obtained?

To obtain the cover following information is required:

- Client’s Name & Address, Phone Numbers.- Bank- Description of goods- Value- Ship/Transporter- Destination

This information should be sent to the following address:Adamjee Insurance Co Ltd

Adamjee HouseI I Chundrigar Road, Karachi

Phone: PABX: 241 2623–26, Direct: 241 6381, Fax: 241 2627

Adamjee Insurance Co LtdSuite No. 217, Eden Centre

43, Ghaus-ul-Azam RoadLahore 54000

Phone: PABX: 756 0001-4, Dir: 757 1523, Fax: 757 6024

Premium Comparative - Class wise Net of Reinsurance

AICL, #2 & #331 December 2005

(PKR Million)

CLASSCLASS ADAMJEEADAMJEEINSURANCEINSURANCE #2#2 #3#3

PREMIUMPREMIUM % % PREMIUMPREMIUM % % PREMIUPREMIUMM

% %

PROPERTYPROPERTY 1,014 1,014 2626 438 438 1111 158 158 1717

MARINEMARINE 1,062 1,062

2727 544 544

1414 222222

2424

MOTORMOTOR 1,466 1,466

3737 2,750 2,750

7373 318 318

3535

MISCELLANEOUMISCELLANEOUSS

409 409

1010 44 44

11 220 220

2424

CLASSCLASS AICLAICL #2#2 #3#3

PREMIUMPREMIUM % % PREMIUMPREMIUM % % PREMIUPREMIUMM

% %

PROPERTYPROPERTY 664 664 2626 291 291 1111 155 155 2323

MARINEMARINE 572 572 2222 318 318 1212 148 148

2222

MOTORMOTOR 1,030 1,030 4040 1,903 1,903

7373 201 201 3030

MISCELLANEOUMISCELLANEOUSS

294 294 1111 2626 11 157 157 2424

(PKR Million)

Premium Comparative - Class wise Net of Reinsurance

AICL, #2, #330 June, 2006