Businesses and stakeholders looking to take advantage of the embedded insurance opportunities for sustainable growth must thoroughly understand how marine insurance operates in Nigeria.
This article delves into the nuances of marine insurance in Nigeria, examining its workings, distinguishing characteristics, and the potential it has to take the maritime industry to new heights.
We are also sharing gems on how stakeholders can use marine insurance to open up new growth opportunities, strengthen resilience, and solidify Nigeria's status as a maritime superpower by peeling back the layers of this essential industry component.
Marine insurance refers to a contract of indemnity. It provides reassurance that the products being shipped from the country of origin to the destination country are covered by insurance.
Any other mode of transportation used to transport goods between the points of origin and the final destination is also covered by marine insurance and includes loss or damage to ships, cargo, terminals, and other items.
Marine insurance in Nigeria is regulated by the National Insurance Commission (NAICOM) and governed by various laws and regulations, including the Insurance Act of 2003. In Nigeria, the insurance sector, including marine insurance, is governed by the Insurance Act.
According to section three of the act, the insurer will be responsible for paying any fees incurred whenever the term "marine insurance" is used, expressed, or even extended for the insuring of goods against loss or damage. In the event that a loss occurs during a marine venture, the insurer will take into account all the certainty of the goods.
By offering protection and reducing risks related to maritime activities and trade, marine insurance plays a crucial role in Nigeria and Africa. Marine insurance protects the interests of ship owners, cargo owners, and other parties involved in maritime operations because coastal regions in Africa are important hubs for international trade and shipping.
It covers a range of risks, such as cargo loss or damage, vessel loss or damage, and third-party liabilities brought on by collisions, piracy, natural disasters, and other perils. Marine insurance promotes trade, facilitates economic growth, and improves the overall stability of the maritime industry in Nigeria and throughout Africa by providing financial security and ensuring smooth
Understanding how marine insurance works in Nigeria is crucial for harnessing the immense potential embedded within the maritime industry. You can open up new growth opportunities, increase resilience, and promote sustainable development by leveraging the power of marine insurance.
Businesses can leverage marine insurance to navigate uncertainties, protect their assets, and drive Nigeria's maritime industry towards a prosperous future by embracing innovative strategies and working with insurance providers.
Contact our team today, let’s help you explore growth opportunities in marine insurance in Nigeria with our AI-powered insurance management and distribution infrastructure . Get started now.
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