Insurance for marine trade is like the calm after a storm, where the goods and ships can be insured to compensate any losses incurred during the movement and transportation of the cargo.

The procedure of insuring under the marine cargo insurance may seem tedious but it is simple documentation once a deeper understanding of the procedure is established.

 

1)    Submission of the form

The name of the insured is to be mentioned on the form. A detailed description of the cargo is essential as the risk of damage differs from product to product. Perishables and non-perishables, liquid, crockery and electronic goods will be hampered by different factors. The method of packing, the material used to pack the goods, mode of transportation for inland as well as ocean transit must be mentioned in detail. The risk coverage requirement must be clear and simple to avoid confusion and misinterpretation in the future.

 

2)    Quotation by the underwriter

Based on the clarity of information provided by the businessman who wants to be insured, a quotation by the insurance company is drafted. A premium rate is quoted on the basis of the nature of the cargo, the method of packing, the ship or vessel and the type of insurance policy requested.

 

3)    Payment of the premium

Once the quotation is acceptable to both parties, that is the insured and the underwriter, the premium amount is paid by the insured. As each policy is tailored to suit the insured providing maximum coverage, the payment will be influenced by details mentioned in the form.

 

4)    Issue of documents

When a regular policy is not yet issued due to lack of clarity in information about the cargo or shipment, a cover note acts as a temporary document to ensure that the insured may be able to carry on his trade.

 

Evidence of a contract in marine insurance is a marine policy which contains details regarding the insured, the risk coverage and the goods.

 

In some cases, a lump sum amount is paid as premium for multiple voyages that take place on a specific geographical path. This is called a floating policy or an open policy. The value of each consignment is deducted from the lump sum amount. It can be paid for up to a year.

 

An open cover is a document similar to an open policy but this document has no legal validation like the open policy. It can be canceled by either party. This is an unstamped document.

The open policy and open cover facilitate features like limit per bottom, limit per conveyance, basis of valuation, location clause, rates, terms, declaration, and cancellation clause.

Documentation for Marine cargo insurance is vital for the long run of large-scale international businesses.

Application for a foreign workers medical insurance can be made by the employer for the non-residential employee who also needs a work pass and permit to prove that he is working in that country by the approval of the government. The work permit for the semi-skilled labor working in the service sector, marine, construction, process sector or manufacturing sector allows them to work without any problems. The employer must apply for the permit of his employee. An appointed employment agency can also apply. These passes are exclusively for the foreign employee and cannot be used for his family members.

 

Work passes and permits are usable up to 2 years or valid till the worker’s passport or employment period ends. After which, renewal is mandatory.

 

As a foreign worker, documentation must be up-to-date. The employers of these workers do not have to make a monthly payment towards Central Provident Fund (CPT) Contributions. Instead, they pay a monthly levy. This levy is to keep a check on the number on foreign workers in Singapore. When the work permit expires, the monthly levy need not be paid. There is no salary qualification to apply for the work permit. It is mandatory for all. Since the forms and payment procedures can be done online, it is time saving and simple.

 

The only aspect to be cautious about is to fill in the right form which is specific to your job description. Each permit and pass is made to cater to a particular job profile. Managers, executives, foreign entrepreneurs, nannies from Malaysia and training programs for foreign students, all require a pass as per their job.

 

The Ministry of Manpower is the ministry that lays down the terms for receiving a permit and pass. All queries and issues can be raised at the Ministry of Manpower. Even in the case of a foreign worker medical insurance claim, if there is any objective it can be raised in the Ministry of Manpower. Application, renewal, appeal and cancellation of work permit are all available online. Reducing manpower for such jobs and relying on technology not only speeds the process for the government but is also an eco-friendly approach.

 

These work passes and permits are well-designed to cater to the protection of the well-being of the foreign worker through the formulation of Employment of Foreign Manpower Act (EFMA). Those employees who are covered by this Act are to receive a salary, annual leave, public holidays and sick leave.

 

If the employer fails to provide a work permit for his foreign employee or if he tries malpractices, a heavy penalty would be levied and he may have to face imprisonment too.