Marine Insurance

Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination.

Marine insurance is a class of property insurance that insures property while in transit against loss or damage arising from perils associated with the navigation of the sea or air and subsequent land and inland waterways.

Having Marine insurance means that a business is covered both internationally and domestically, while goods in transit, whether by road, rail, sea or air. Marine insurance also covers:

•     Fire and explosion
•     Accidental damage
•     Loss of goods
•     Theft
•     Sinking, grounding and stranding
•     Heavy weather
•     General average & salvage charges
•     Piracy
•     War and strikes (including terrorism)
•     Road traffic accident

There are two main types of marine insurance:

• Marine Cargo - covers losses arising from physical damage to cargo and related liabilities whilst it is in transit by sea and for up to 60 days whilst in storage. The risk location is usually the territory in which the insured is resident or its business establishment is situated.
• Marine Hull - covers losses arising from physical damage to the hull. Yacht liability insurance covers owners and operators of yachts for third party liability. The risk location can be determined by any one of the following Physical location of the vessel (place of operation), Jurisdiction in which the vessel is registered and Location of the insured’s residence or business establishment Please see the territory specific guidance on Crystal for specific risk location rules.

To ensure your business gets rapid and full compensation in the event of a loss event, it is suggested you take out a marine policy that is tailored to your business needs. The liability of the various cargo service providers is very limited and may, in some cases, be wholly absent. It is also often the case that loss or damage sustained cannot be attributed to the person who actually caused it in the transport chain.

Plants All Risk Insurance

Plant All Risks Insurance is protection for plants and machinery against unforeseen physical loss or damage due to external causes. Construction and erection works often call for the use of heavy, specialized machinery such as tunnel boring machines, earthmoving equipment, cranes, pumps, air compressors etc. so it’s important to have all plant and equipment covered by insurance as no one knows what may happen.

Plant All Risks Insurance includes loss or damage caused by:

•     Mechanical or electrical failure or over-heating of the insured plant
•     Loss or damage to any item due to its own explosion
•     Depreciation
•     Wear and tear
•     Gradual deterioration
•     War, civil war, mutiny or military insurrection
•     Infidelity or dishonesty of the insured’s employees
•     Consequential loss

There are different types of construction work insurance offered, which are

Contract Works Insurance

Contract Works Insurance provides cover for the property being worked on, i.e. the ‘works’. Contract Works cover are mainly that any damage that occurs to the ‘works’ being carried out can mean having to do the work twice for only one payment – for example if the extension catches fire or the roof blows off half way through the job.

Own Plant Insurance

An Own Plant insurance policy will include cover for any of your own plant, scaffolding, site huts or temporary buildings that are owned or hired by you.

Hired In Plant Insurance

If you hire in plant and equipment, it is likely that the owner of the equipment will hand over responsibility for any damage or theft to the machinery. By taking out Hired-in Plant Insurance, you will cover both the equipment and any liability you may have to the owner.

Tools Insurance

Tools are crucial to some businesses, particularly to those in the construction industry and to independent tradesmen. Protecting your tools with insurance means that you’ll have the peace of mind that they can be replaced with a minimum of disruption to your business activities. The level of tools insurance varies. It covers hand-tools, power-tools and equipment for loss, damage or theft.

What is Workmen’s Compensation?

Workmen’s compensation or Workers’ compensation is a type of insurance that provides wage replacement as well as medical benefits to a company’s employees who may have been injured during the course of employment. This policy is usually provided in return for mandatory relinquishment of the employee's right to sue the employer for negligence.

A typical Workmen’s Compensation policy covers:

• Weekly payments in place of wages
• Compensation for economic loss
• Reimbursement or payment of medical and like expenses
•  Benefits payable to the dependents of workers killed during employment

Employees cannot claim for pain and suffering, and punitive damages for employer negligence.

Nigeria Workmen’s Insurance

In Nigeria, Workmen’s Compensation policy is usually taken by employers of labour and is one of the several policies legislated by law. Nigeria has a developing economy, this insurance is legislated by law to ensure the continual growth while protecting workers.

 

Workmen’s Insurance Fraud

Fraud is a problem which plagues workers' compensation systems in every country not just Nigeria. Billions of dollars being spent on unnecessary litigation, surveillance, legal fees, and settlements worldwide.

The most common fraud include:

• Offsite Injury. A worker get injured at home or any place except work, but claims they were hurt on the job so that their workers' compensation policy will cover the medical bills.
• Exaggerated injuries. A worker receives a relatively minor job injury, but lies about the magnitude of the injury in order to collect more workers' compensation money and stay away from work longer.
• False injuries. Workers fabricate an injury that never took place, and claim it for workers' compensation benefits.
• Old injury. A worker with an old injury that never quite healed claims it as a recent work injury in order to get medical expenses covered.