All government cargoes in transit either by land, sea or air including land transportation and dock storage must be insured with GSIS against loss or damage owing to heavy weather, fire, lightning, explosion, grounding, stranding, collision, machinery damage, ranging, piracy, barratry, sue, and labor.
Two types of marine insurance given by GSIS:
1. Hull Insurance for vessels, craft, hull machinery including builders’ risks
2. Cargo Insurance for goods, cargoes, merchandise such as air cargo and parcels.
A. Marine Hull
Everything connected in a vessel or ship primarily its hull and machinery must be insured with GSIS against loss or damage because of heavy weather, fire, lightning, explosion, grounding, stranding, collision, machinery damage, ranging, piracy, barratry, sue and labor.
Marine Hull covers the following types of vessels:
Coverage of Marine Hull Insurance institutes the following: time clauses hulls or the hull “full conditions which usually cover navigating vessels, port risks clause, and total loss including Salvage, Salvage Charges
B. Marine Cargo
Transfer of government goods, cargoes or merchandise either by land, sea or air from point of origin to the final destination must be covered by either or both kinds of GSIS’s marine cargo insurance:
1. Open Policy – provides automatic cover for all shipments of the Assured, who is obligated to declare all shipments. Risk Notes are issued under the MOP on a per declaration basis.
2. Individual or Voyage Policy – covers only one shipment at one time per voyage. The Assured must declare the policy prior to shipment.
The marine cargo insurance coverage starts from the time the goods leave the warehouse or place of storage until they reach their final warehouse or any other warehouse prior to the destination which the assured selected for storage.
Through the marine insurance of GSIS, government interests at sea are assured of protection.