Meaning and Types of Marine Insurance
There are 9 types of marine insurance. 1. Voyage Policy, 2. Time Policy, 3. Valued Policy, 4. Blanket policy, 5. Port risk policy.
Meaning:Marine insurance gives protection against the losses induced due to the dangers of the sea. It is a form of an insurance contract protecting loss or damage to vessels or to cargo or passengers during marine transportation. All the Principles of Insurance apply to marine insurance contracts.
Types of Marine Insurance Policies
Following are the 9 types of marine insurance.
It is a policy in which the subject matter is insured for a specific voyage irrespective of the time involved in it.
The second type of marine insurance is a time policy. This subject matter is insured for a definite period of time. This type of policy cannot be for a period exceeding one year, but it includes a continuation clause. If the voyage is not completed within a specified time, the risk shall be covered until the voyage is completed.
The mixed policy is the combination of voyage and time policy. It covers the risk of both, a particular voyage and for a specified period of time.
In this type of policy, goods are insured for an agreed value between the insurer and the insured at the time of taking the policy. This enables easy compensation of claims in case of each item where is difficult to assess the real market value.
The blanket policy is taken for the maximum limit of the needed amount of protection and the full amount of premium is paid at the beginning of the policy. This policy describes the nature of goods insured, specific routes, ports, and places of the voyage. This policy covers numerous risks on one property it covers many properties under the policy.
Port risk policy
Post risk policy covers all types of risks of a ship while it arrived at the port for a certain period of time. This type of policy is suitable till the leave of the ship from the port.
This type of policy is bought from more than one insurer. The liability of each insurer is different and special. A composite policy is taken when the amount of insurance is significantly high.
Single vessel policy
This policy is suitable for small ship owners having only one ship. It covers the risk of one ship of the insured.
Fleet policy and block policy
In fleet policy, several belonging to one owner are insured under the same policy. In block policy, the cargo owner is covered against loss of cargo in all ways of transport via which his/her cargo is carried i.e protecting all the risks of rail, road, and sea transport, etc.
So, friends, these were the Meaning and Types of Marine insurance and I hope you have understood them clearly. But still, if you see any need in this post, then please give your thought in the comment box and help us to enhance that deficiency, thanks.