What do you mean by Marine Insurance?
Marine insurance has been defined as a contract between the insurer and insured in which insurer agrees to pay an agreed amount to the insured against marine losses. Marine insurance covers transportation of goods by ship , rail, road, air & couriers .
Types of Marine Insurance in India:
Hull Insurance: It is the Insurance of vessel and equipments. The subject matter of Hull insurance is the vessel or ship such as ocean steamers, sailing vessels, builders etc.
Cargo Insurance: It covers the damage and loss of cargo (wares, property, goods etc.) caused by lightening, fire, explosion, storm, cyclone, earth – quake, strikes, riot etc.
Liability Insurance: Liability insurance includes liability hazards such as collision or running down. It can also take for the expenses concerned in non- compliance of rules and regulations without any intention to fraud. The perils to be included are clearly defined in the policy and the insurer is only liable for the insured perils. Marine perils include the ocean as well as the inland perils.
Freight Insurance: – This type of insurance provides protection against the loss of freight. The owner of goods is bound to pay freight, when the goods are safely delivered at the destination. If the ship is lost on the way or the cargo is stolen or damaged, the shipping company loses the freight.
Who can insure through Marine Insurance?
The owner of the ship & the cargo has an insurable interest in the ship.
A creditor who has advanced money for the security of the ship has insurable interest to the extent of his advance.
The entire member of staff presents in the ship or rail or airways have insurable interest in respect of their wages.