Transport and machinery insurance
Transport insurance, formerly called marine insurance, is the oldest form of insurance. The origin of this insurance lies with the ancient Greeks and Romans. The so-called ‘foenus nauticum’, also referred to as ‘bottomry’, is generally accepted as the oldest form of risk coverage against the payment of a premium. The monetary value consisted of the principal of having to pay a high interest rate over the loan sum after safe arrival of the goods. Should the vessel and/or cargo that served as security for the loan be lost during shipping, the repayment obligation would expire.
Over the years, this type of insurance developed into the current form of transport insurance. The most important categories of transport insurance are:
- Comprehensive hull insurance
- Cargo insurance
- Liability insurance for persons involved in the transport
Traditionally, transport insurances also includes the insurance of exhibited goods and the insurance of work equipment. In The Netherlands, standard conditions have been developed for the transport insurance market, both by the VNAB as well as by brokers and insurers. In the United Kingdom, the coverage is determined by the Marine Insurance Act from 1906 (recently revised) and also by the usual standard conditions. Work and/or landing equipment is usually insured under the landing equipment policy and corresponding conditions (please refer to VNAB). Moreover, these conditions serve as a basis for specifically developed products by brokers.
