Total Loss Only Marine Hull Insurance

Marine insurance is important as it covers the loss or damage of ships, cargo, and terminal and so on.¹ Generally, it provides a wide range of coverage that protects shipments from various perils.² Marine insurance is important to have as a consignee who has cargoes transporting on sea. Recently, there had been a few reported cases of cargo ship sinking, one of which is the cargo ship "Jin Tian" from China that sank in Japan's waters, causing eight death and others missing.³ Another recent case is the Tanzanian cargo ship that sank in Iran.⁴ In such situation, consignees are often faced with great cargo loss. However, the shipowners are also greatly affected by the sinkage of the ship. Besides marine insurance that is aimed to protect against cargo losses, there is also the marine hull insurance that protect against the loss and/or damage of the vessel itself.⁵ For that, this article explores into the Total Loss Only Cover ("TLO") available in marine hull insurances