Meaning: -Marine Insurance gives protection against losses
caused due to the dangers of the sea. Marine Insurance is very useful for
foreign trade i.e. for exporters and importers. It has become mandatory for
exporters and importers to insure their goods. It also covers the loss or
damage to the passengers in cruise during journey on the sea. Marine Insurance
covers the dangers of the sea such as sinking of the ship, storm, fire, explosion in the ship, crashing with
icebergs, pirates, etc.
Definition: - according to Marine Insurance Act, 1963 "An
agreement whereby the insurer undertakes to indemnity the assured, in the
manner and to the extent thereby agreed, against losses incidental to marine
adventure. It may cover loss or damage to vessels, cargo or freight."
Types of Marine Insurance Policies:
1.
Voyage Policy: - It is a policy in which the subject matter is insured for
a particular voyage irrespective of the time involved in it. In this case, the
risk begins only when the ship starts on voyage. E.g. voyage from Mumbai to New
York.
2.
Time Policy: -Time policy is one in which subject matter is
insured for a definite period of time against the perils/dangers at sea. A time
policy cannot be for a period exceeding one year, but it may contain
continuation clause. The continuation clause means that if the voyage is not
completed within the specified time, the risk shall be covered until the voyage
is completed or till the arrival of the ship at the port.
3.
Mixed Policy: -This Policy is the combination of time and voyage
policy. It therefore, covers the risk for both, particular voyage and for a
specified period of time. E.g. A policy can be taken from Mumbai to New York
for 40 days voyage starting from 1st February 2012.
4.
Valued Policy: -Under this policy, goods are insured for an agreed
value between the insurer and insured. This is applicable, when it becomes
difficult for the insurer to assess the value of the goods. In case of cargo this
value means the cost of goods plus freight and shipping chargers plus 10% to
15% margin for anticipated profits. This agreed value is more than the actual
value of goods.
5.
Floating Policy: -Floating Policy is taken for a large sum covering
several shipments. This policy is mostly taken by exporters in order to avoid
trouble of taking out a separate policy for every shipment. This policy covers
several shipments till the amount insured is exhausted.
6.
Blanket Policy: -Under blanket policy, the maximum limit of the
required amount of protection is estimated which is purchased in lump sum. The
amount of premium is usually paid in advance. This policy describes the nature
of goods insured, specific route, ports and places of voyages and covers all
the risks accordingly.
7.
Port Risk Policy:- Port risk policy covers all the risks of a vessel
while it is anchored at the port for a particular period of time. This policy
is applicable till the departure of the vessel from the port.
8.
Composite Policy: -This type of policy is purchased from more than one
insurer. The liability of each insurer is separate and distinct. This policy is
taken when the amount of insurance is very high.
