MARINE INSURANCE

Meaning
Section 3 of the marine insurance act 1963 defines marine insurance as an agreement whereby the insurer undertakes to indemnify the assured in a manner and to the extent thereby agreed against marine losses .

Types of marine insurance

Hull insurance: The insurance of ships is called hull insurance . Cargo insurance: Goods sent by ship are known as cargo. Insurance of goods called the cargo insurance Freight insurance: If the freight is payable on the arrival of the ship at the port of destination, the shipping company may have to lose the freight on the non-arrival of goods safely at the port of destination.

MARINE PERILS
Perils of the sea: It refers to fortuitous accidents of the sea. Eg. Collision, sinking of vessel when it strikes upon a sunken rock and heavy storms Fire: resulting from lighting, explosion etc., Enemies: includes all types of ships belonging to the enemy countries Jettison: It refers to the voluntary and intentional throwing over board for the purpose of lightning or relieving the ship in case of necessity or emergency to safeguard the ship

 Barratry: It refers to every wrongful act willfully committed by the master or crew to the owner of the ship eg. Setting fire to the cargo Pirates (sea robbers), rovers (wanderers and pirates on high seas and thieves( robbers using force or violence) Men-of-war: It means vessels authorized and maintained by the nations for the purpose of defense or attack

 Restraints: The prevention of free use of port by the government of a particular country is known as restraint Detainments : It refers to forcible stoppage of vessel Letter of mart: It indicates the power granted by a country to persons authorizing them to attack an enemy merchant ship Letter of counter mart: It refers to the power granted by the opposing nation to retaliate such attacks Surprisals: It refers to the capture of vessel by the cargo enemies

Types of Marine policies

Voyage policy: It is policy which covers the subject matter for the duration of a particular voyage. Time policy: When a policy is taken for a definite period of time it is called time policy . Mixed policy: Mixed policy is the one under which insurance contract is entered into for a certain time and for a certain voyage Floating policy: It is used by cargo-owners who make regular shipment. Policy is taken for a round amount and declaration about the particulars of goods and ship should made, whenever goods are despatched. The premium is fixed on the basis of declaration that is made.

 Blanket policy: Maximum policy is taken and maximum premium is made and is readjusted at the end of the term of the policy and in case, if the premium paid is more, the excess is refunded Valued policy: Value specified in the policy Unvalued policy: Market value is considered Single vessel policy: single ship Fleet policy: several ships Block policy: Covers risks from the time of collection to the port of destination

 Port risk policy: Protection to ship when it is anchored in a port Named policy: when a policy contains name of a ship. It is called named policy Construction builders risk: Covering risk during the period of construction.

Marine policy conditions/Clauses

Assignment clause: Generally marine policy is freely transferable. A cargo policy is assigned by endorsement and delivery and hull policy by specific endorsement. Lost or not lost clause: When the insured happens to take insurance after the date of shipment, the insurer undertakes to indemnify any loss which might have occurred during the period between the date of shipment and the date of issue of the policy

 Inchmaree clause: This clause covers losses caused by the negligence of the master, crew, pilots etc. At and from clause : Sue and labor clause : reasonable care should be taken Running down or collision clause Touch and stay clause: This clause permits the ship to touch and stay at ports as mentioned in the policy

 Re-insurance clause: Valuation clause: verifying the details regarding desciption, quantity, quality weight etc., Premium clause: This clause contains an acknowledgement on the part of the underwriter of having received the premium Warehouse to warehouse clause Memorandum clause: N.B Clause(Nota bena clause) The insurer is not liable for perishable nature of cargo.

 Continuation clause: This pertains to time policy and pro-rata premium is paid PREMIUM CALCULATION Numerical rating: Assigning marks according to the nature of risks. Judgment method

Lloyd s marine insurance(1689)

Pioneer in marine insurance. Association started by Mr. Edward Lloyd, owner of a coffee house, where merchants from different parts of London used to assemble for collecting shipping information Procedure: Approaching a broker Preparation of the slip( nature of risk, description, type value etc). Forwarding the slip to various insurers/underwriters Issue of Lloyd s marine policy. In case of default on the part of underwriter, the association will indemnify the loss.

Types of marine losses

Total loss Actual total loss refers to total destruction of the subject matter Constructive total loss The subject matter insured is reasonably abandoned by giving notice of abandonment Partial loss Particular average loss: must be an accidental one and it should been caused by the peril insured against General average loss: not an accidental one , can be against any general peril

Miscellaneous insurance
 Motor insurance Legal liability insurance  Public liability insurance: compulsory one for handling hazardous substances as per environment protection act 1986.  Product Liability insurance : provide indemnity for any claim caused by harmful or defective in the products sold  Professional indemnity insurance  Workmen compensation insurance Accident and Hospitalization insurance  Personal accident insurance  Mediclaim insurance  Group mediclaim insurance  Overseas mediclaim insurance

Business insurance
Burglary insurance Money-in-transit insurance Fidelity guarantee insurance Neon sign insurance Jewellers block insurance Jewellery shop owner Shopkeepers insurance Duty insurance Plate glass insurance

taken by the

Industrial and engineering insurance

Boiler explosion Machinery breakdown insurance Contractor s all risk insurance Erection all risk insurance(covers P&M) Deterioration of stock insurance(agricultural produce) Machinery loss of profits insurance Electronics equipments insurance

Personal package insurance

Householder s insurance Pedal cycle insurance Mobile phone insurance Baggage insurance Amartya siksha yojana insurance (education for dependent children) Travel insurance (single trip, annual trip, family travel, business travel) Rural insurances crop insurance Poultry insurance Hut insurance Kissan pumpset insurance Horiculture insurance Sericulture insurance Honey bee insurance

Other insurances
Sports insurance Special contingency policy( eg.abandonment of cricket match Student safety insurance Aviation insurance