Marine Insurance

MARINE INSURANCE

Marine insurance is a contract whereby the insurer undertakes to indemnify the insured in manner and to the extent thereby agreed against the losses caused in connection with a marine adventure including vessels, cargoes, freights and any other interests incidental to the marine adventure like wares, merchandise, transit by land, water or air and so on.

Types of Subject Matter of Marine Insurance

1. Hull Insurance

2. Cargo Insurance

3. Freight Insurance

4. Liability Insurance

Types of Marine Insurance Policy

1. Voyage Policy: Route predetermined, more suitable for cargo

2. Time Policy: Effective for a predetermined time, more suitable for hull

3. Mixed Policy: Mix of voyage and time policy both for vessel and cargo

4. Valued Policy: Subject matter pre-valued

5. Unvalued Policy: Subject matter is not pre-valued

6. Blanket Policy: premium prepaid for specific time, place and amount. Excess or shortage of premium is adjusted later.

7. Currency Policy: Policy amount is fixed in local currency but compensation to be paid in Dollar or Pound or Euro

8. Floating Policy: A large single premium which covers various voyages.

9. Block Policy: Covers marine risks as well as other related risks

10. Named Policy: Names of ship and cargoes are mentioned

11. Composite Policy: Several insurers cover huge amount of risk

12. P.P.I policy or Wagering Policy: 'Policy Proof of Interest' i.e. there is no insurable interest but honored by the insurer for some business purposes

13. Port Risk Policy: Covers the risk of ship and cargo at the time of staying in port

14. Single Vessel Policy (single policy for a single ship) and Fleet Policy (single policy for several ships under same fleet):

15. Double Insurance Policy: Policy purchased for same subject matter from more than one insurer.