Impact of Corona Virus on Marine Insurance Claims
The smaller the corona is, the bigger is its implications. However, the sad part is most of them are negative and is expected to cause a lot of economical damage. Just like other departments, it has affected the marine insurance markets. There are both short and long terms implications and we will talk about both in this post!
COVID has caused disturbances in the global supply chain and so has affected the marine insurance market. The activities like delayed payments, renegotiating supply contracts, a quarantine period of staff and crews, accumulations of cargos, and late deliveries have affected the overall business and transactions. The marine insurance industry also faced the same problems; therefore, it has been severely hit by the COVID-19.
Short-Term Implications Of COVID On Marine Insurance Claims
The short-term implications include dealing with the disclosure and inability of sticking to the policy terms during the COVID pandemic. There will also be some fraudulent activities as the scammers have a lot of space in the ground to play due to a decrease in the normal functioning of the industries. Moreover, there are a lot of insolvencies obviously due to disclosure and the transactions between the businesses will be highly affected.
The diversion and loss & damage expenses have been increased due to the quarantine of workers. Moreover, the ship-owners may also be subjected to a heavy fine if any of the members are ill or tested positive. This is one of the biggest damages done to the marine industry by COVID. However, the relief is that it is short-lived and will be recovered once we overcome this period.
Long-Term Implications Of COVID On Marine Insurances Claims
The COVID pandemic has shifted the overall market to smaller scales. Due to a high risk of catching the deadly virus during international transactions, the local dealings have been promoted. Things have pretty much been shifted to within-the-country or within-the-city dealings that will severely affect international trade and transport. However, it will improve the local businesses and will provide more job opportunities for the locals.
Furthermore, we are already witnessing that business dealings are shifting online. Therefore, there will be a massive change in the overall marine insurance industry where most of the dealings will be done online. From booking to money transactions and other trade aspects, everything will be done via the web. The physical work would be much less in the future that will change the overall industrial scenario. Well, this isn’t all bad and is being seen as a positive impact of COVID.
Catching the virus seems like a pretext sometimes. It sounds like it was a reason to change the overall lifestyle and to promote local and online transactions more. The marine insurance claims have also been affected due to these aspects as things haven’t been done as promised by the industry. The services providers like SIGBL software solutions have also claimed that the marine insurance industry works differently than the previous year, and the working scenario will be permanently changed in the future.