Marine Insurance
Marine insurance falls under commercial insurance. The policy is taken to reduce business risks. Marine insurance covers the risk of loss to ships and vessels, and also provides Cargo cover. All ship-owners and shipping merchants must insure their property against losses or damages. They are not legally bound to insure their own interests or bound to insure against third party liabilities either. However, the modern methods of financing, trade and shipping make it essential that they do so.The capital that is exposed to loss in modern ships is so huge that no shipping corporation can afford to bear the liability incurred. Besides, most of the tonnage is mortgaged to banks and other financial institutions and they require insurance as collateral security.
Types of Marine Insurance:
* Marine import transit insurance.
* Marine export transit insurance
* Marine inland transit insurance
* Marine insurance claim procedure.
* Marine Hull
Suitability of Marine Insurance:
These policies cover risks associated with transshipments of goods like:
1. Transit of heavy goods such as Rail Engines by shipping vessels or
2. Consignment of Diamonds sent by post or
3. Movement of household goods by rail/road/Air.
4. Risks vary with the type of business transacted whether it is by importers, exporters or trading house.
5. Some form of Life & transit risks is still undertaken by Indian Posts & Telegraphs Dept.
Benefits of Marine Insurance:
But for the Marine insurance policies, the trade, industry and commerce would not have developed to the present levels of turnovers anywhere in the world. A manufacturer can export their products with confidence as their dispatches have the support of Marine insurance policies, and they can also discount their bills with local Bankers without waiting for the bills being paid by the overseas importers after they receive the goods which may take months by ocean transit. Marine Insurance Policy is one of the important documents besides Invoice and Bill of Lading.