A.O.V. (Any One Vessel) is an insurance term that specifies the maximum liability an insurer will cover for all cargo transported on a single vessel. It is a key provision in marine cargo insurance, ensuring that losses from a single shipping incident do not exceed a predefined financial limit.
How It Works:
- The A.O.V. limit is set by the insurer and applies to all cargo on a single vessel, regardless of the number of shipments.
- If cargo on a vessel is damaged or lost, the insurer will compensate up to the A.O.V. limit, even if multiple policyholders have shipments on board.
- If total claims exceed this limit, compensation is proportionally distributed among affected cargo owners.
Why A.O.V. Coverage Matters:
✔ Protects businesses from excessive financial losses in marine transport.
✔ Ensures insurers maintain financial stability by capping per-vessel liability.
✔ Essential for companies involved in international trade and shipping.
Example Scenario:
A shipping vessel carrying multiple cargo shipments suffers damage during transit. The insurer has an A.O.V. limit of ₹10 crore. If total cargo claims amount to ₹12 crore, the insurer will only cover up to ₹10 crore, and cargo owners may receive partial compensation based on their individual policies.
Who Needs A.O.V. Coverage?
- Importers & Exporters relying on maritime transport.
- Logistics & Freight Companies managing bulk shipments.
- Manufacturers & Retailers shipping goods via sea routes.
With PlanCover, businesses can find the right marine cargo insurance policies with suitable A.O.V. (Any One Vessel) coverage to safeguard their shipments. Get expert assistance in selecting the best insurance solutions today!
