What is Marine Insurance?

What is Marine Insurance?
Marine Insurance
The term “marine insurance” refers to a type of policy that covers third-party liabilities as well as losses on the Hull, Cargo, and Passenger as a result of marine risks. In general, it is a type of insurance that covers loss or damage to watercraft or cargo.

It is a contract between the insurance company and the policyholder.

Marine Insurance safeguard against losses, whether onshore or offshore, is provided by this contract. Depending on the transporter’s needs, requirements, and specifications, there is a clear classification for the various types of marine insurance and policies.

International transport insurances can be divided into marine cargo insurance, inland cargo insurance, air cargo insurance, and post parcel insurance. Among all of them, marine cargo insurance and Inland cargo Insurance. They are the oldest and the most widely used.

The Principles of Insurance:
Features:
Utmost Good Faith:
The insured and the insurer must both disclose all information about the insurance.

Indemnity:
Since this is a contract of indemnity, the insured can only get the actual amount of their losses back.

Insurable Interest:
Because it can be insured, it must exist in the event of losses. Master and crew, cargo owner, and so on an undeniable interest

Warranty:
It functions like the insurer’s safety valve. The assured makes a promise to the underwriter that something will happen or not.

Proximate Cause:
This section explains how the loss or damage occurred and whether or not it was caused by an insured peril.

Benefits of Marine Insurance
• Transport insurance offers general protection against a variety of risks.

• It contributes to the smooth running of business because you can conduct your business without worrying about losses in the event of an accident.

• Provides financial stability to the individual.

• Covers expenses such as property damage, labor, legal fees, acts of God, accidents, etc.