SOL or Shipowners’ Liability to Cargo is a common term used to describe the insurance arranged to cover a member’s liabilities arising from a breach of contract of carriage, where such a breach deprives the carrier of the right to rely on defences or rights of limitation which would otherwise have been available to him. A typical SOL example is geographical deviation or departure from the contractually agreed voyage; liability for loss of and/or damage to cargo arising out of such a deviation falls outside the scope of standard P&I.

What is covered

Following situations normally require SOL insurance to be arranged:

- Geographical deviation of the vessel from the contractual voyage
- Cargo being carried on vessels other than that named in the bill of lading
- Cargo being loaded on the vessel after a casualty prior to dry-docking or repair
- Cargo being carried beyond its destination and returned by the same vessel
- Cargo being shipped on board vessels other than those of the member prior to the delivery of such cargo to the member’s vessels for the carriage thereof and similarly after such carriage
- Cargo, including mail and/or merchandise, being stowed in spaces not certified for the carriage of cargo
- Cargo remaining on board the vessel during dry-docking; cargo being transferred to and/or from and/or being carried on board feeder vessels
- Cargo being transferred from one point to another by water and/or rail and/or air and/or motor trucks and/or other conveyances
- Cargo being transhipped at any port or ports, place or places (including both under-carriage and over-carriage of cargo) instead of being carried on board the original vessel to the destination stated in the bill of lading
- Cargo being discharged from and reloaded upon the same vessel and/or cargo being shifted within the confines of the vessel for any reason whatsoever at any port or place of shipment or destination and/or at any port or place between the point of shipment and the point of destination
- Cargo being discharged onto lighters at any port or place prior to the surrender of bills of lading by the consignees or their representatives
- Cargo being lightered to other than the scheduled loading or unloading berth
- Cargo being stored on lighters before loading or after discharging from vessels

Why is it Important?

Affinity applications in insurance not only enhance customer service but also offer several advantages to companies:

  • Customer Loyalty: Affinity programs can increase customer loyalty by better addressing the needs of the target audience.
  • Specialized Insurance Products: Affinity applications provide a better customer experience by offering specially designed insurance products.
  • Collaboration Opportunities: Companies can expand their markets by collaborating with other institutions.
  • Digital Transformation: Technology and data analytics can make affinity applications more effective.

In conclusion, affinity applications in insurance are a means of providing better service to customers and attracting new ones for businesses. These programs reflect industry advancements by focusing on specially designed insurance products and customer needs.

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Shipowners Liability

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