Marine Insurance

Marine insurance would be defined as “Protection against future loss.” Marine insurance is another variant of the general term ‘insurance’ and as the name suggests is provided to ships, boats and most importantly, the cargo that is carried in them. Having a Marine insurance is very important for ship owners and transporters because they will be sure of claiming damages especially considering the mode of transportation used. Of the four modes of transport – road, rail, air and water – it is the latter most which causes a lot of worry to the transporters not only because there are natural occurrences which have the potential to harm the cargo and the vessel but also other incidents and attributes which could cause a huge loss in the financial casket of the transporter and the shipping corporation.

Importance of having marine insurance :

Important aspect of having a marine insurance is that a transporter has an advantage to choose the insurance plan as per the size of his ship, the routes ship go through to transport the cargo and many other such minor points which could go a great length in affecting the transporter majorly. Marine insurance acts as a safety for shipping corporations and transporters because it helps to reduce the aspect of financial loss to them due to loss of important cargo. Also, it helps to bring about to the transporting companies and to the receiving parties, the duty, dedication and the straightforwardness of the insurance companies.

Type of Marine Insurance:

  • Cargo Insurance

  • Hull Insurance

  • Liability Insurance

  • Freight Insurance

  • Voyage Policy

  • Time Policy

  • Mixed Policy

  • Open (or) Unvalued Policy

  • Valued Policy

  • Port Risk Policy

  • Wager Policy: Floating Policy

Therefore there are various other plans and policies which indicate about covering just not only the cargo but also the vessel as well, thus the transporter can choose and avail of the best policy that suits their business the best.