CBN Circular on Integration of Digital Marine Insurance Certificate with e – FORM M on Nigeria Trade Portal

Marine Insurance Certificate – The Central Bank of Nigeria (CBN) has notified Authorized Dealers, the Nigeria Custom Service and the general public that the Nigerian Insurance Association  (NIA) digital Marine Insurance Certificate has been integrated with e – FORM M on the Nigeria Trade Portal.

With effect from Monday September 14th, 2020, the NIA’s Marine Insurance Certificate shall be part of the documentation requirements for processing e – FORM M.

Following this, CBN has directed the use of hard copy Marine Insurance Certificate for processing e – FORM M will be discontinued from September 14^th , 2020.

Marine Insurance

Insurance generally is the arrangement where a holder of insurance policy is into a contract with an insurance company, in this contract, the insurer is being indemnified for possible loss in case of hazard or unforeseen circumstance.

Such loss however must not fall outside the provision of the policy for indemnity.

By this arrangement, indemnity is only given in event where the loss is deemed fit and within the tenets of the insurance policy covered.

The insurer is expected however to have been paying commensurate premium.

Now to Marine Insurance according to securenow, this is an insurance that covers the losses or damages caused to ships, terminals and any transport or cargo by which goods are transferred, acquired or held between different points of origin and final destination.

Marine insurance is a haven for transporters and shipping corporations because it helps to lower the aspect of financial loss due to a cargo loss.

The insurance offers comprehensive cover, there are instances which are not covered under the policy like;

• Loss or damage due to willful negligence
• Loss or damage due to improper packaging
• Removal of wreck
• Contamination due to radioactive rays
• Loss or damage due to riot, strike, civil commotion etc.

Features of Marine insurance

• Open policy
• Comprehensive protection
• Customization
• Mark up value

Definition of terms

Indemnity – This is financial compensation given to a holder of insurance policy in event of loss, as may be deemed fit and certify by the insurance company after possible evaluation of nature of risk/hazard incurred.

Premium – This is monetary contribution made by the user against the insured property, of which the insured holds against the insurance company to get compensation in event of possible loss or damage.

Insured –  The person or group of organization whose life or property is covered by an insurance policy.