What is marine insurance and its features?
Marine insurance is an indemnity policy under which an insurer agrees to compensate for losses or damages in consideration of the timely payment of premium. The contract of marine insurance shall cover the clause for indemnity as in no case Assured shall be allowed to make profits out of claim amount.
Why is it called marine insurance?
Why is it called “inland marine” insurance? This policy is called inland marine insurance because it’s an offshoot of ocean marine insurance, which protects property transported over water. Marine insurance came first – hence the distinction “inland” marine for land transportation coverage.
What is marine insurance discuss with example?
Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination. … When goods are transported by mail or courier, shipping insurance is used instead.
Why is marine insurance important?
Costly Items lead to Bigger Loss
Marine insurance is necessary to keep the safety of your costly items intact. The carriers through which the items are being delivered have limited liability.
Why is marine insurance so important?
Marine cargo insurance is a relatively inexpensive way for shippers to protect their goods from loss, damage or theft when it’s under the care and custody of an ocean carrier.
What are the functions of marine insurance?
Besides, marine insurance is vital as it delivers protection against any loss/damage incurred to the ship and to the cargo, which the ship is transporting. Whether you own a yacht or ship for any commercial or any transportation purpose, marine cargo insurance policy will protect you from every marine-related risks.
What are the clauses of marine insurance?
The memorandum clause is used to save the insurer from paying small losses of perishable goods. Under this clause the insurer is not liable for partial losses. In certain commodities this loss is allowed up to 50%. However, if there is a general loss or the ship is stranded, the insurer will be liable to pay the loss.
What are the 5 principles of Marine Insurance?
The fundamental principles of Marine Insurance are drawn from the Marine Insurance Act, 1963* As in all contracts of insurance on property, the contract of Marine Insurance is based on the fundamental principles of Indemnity, Insurable Interest, Utmost Good Faith, Proximate Cause, Subrogation and Contribution.
Who can take Marine Insurance?
The Marine Insurance policy can be taken by buyers, sellers, import/export merchants, contractors, banks—or anyone engaged in the import and export of goods or transportation of it within the country.