What are the terms used in marine insurance?

• Marine Cargo Insurance. Marine Cargo insurance is a type of insurance policy that covers the loss or damages caused to marine cargo during the transit. ...
• Liability Insurance. ...
• Hull Insurance. ...
• Freight Insurance.

• Features of General Contract,
• Insurable Interest,
• Utmost Good Faith,
• The doctrine of Indemnity,
• Subrogation,
• Warranties,
• Proximate cause,
• Assignment and nomination of the policy, and.

What is jettison in marine insurance?

Jettison — the intentional throwing overboard of part of the cargo or some piece of the ship in order to save the ship or its cargo. Virtually all ocean marine policies cover the peril of jettison.

What are the principles of insurance?

In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution. The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized.

What is floating policy in marine insurance?

Floating Policy: A marine insurance policy where only the amount of claim is specified and all other details are omitted till the time the ship embarks on its journey, is known as a floating policy.

What is marine liability insurance?

Marine Liability Insurance provides cover for: Loss of or damage to any other vessel or property caused by insured vessel. Death, personal injury or illness to the third party. Removal of wreck. Loss of or damage to any vessel or craft in your care, custody or control.

What is the implicit condition of marine insurance?

Warranty of legality. —There is an implied warranty that the adventure insured is a lawful one, and that, so far as the assured can control the matter, the adventure shall be carried out in a lawful manner. 44. Implied condition as to commencement of risk.

What is hull in marine insurance?

What is Marine Hull Insurance? Marine hull insurance is an insurance policy specifically designed to provide coverage to water vehicles like a boat, ship, yacht, fishing boat, steamer, etc. A hull means the body of the vessel and that is exactly what is covered by this insurance policy.

What is not covered in marine insurance?

Marine Insurance doesn't offer any coverage in the following cases: Loss or damage due to willful act of negligence and misconduct. ... Loss or damage due to wire, strike, riot, and civil commotion. Loss or damage arising from the use of nuclear fission, weapon, or any other radioactive force.

Why marine insurance is important?

Besides, marine insurance is important as it offers protection against any damage/loss incurred to the ship and to the cargo, which the ship is transporting. Whether you own a ship or yacht for any commercial or any transportation purpose, marine insurance policy will secure you from every marine-related peril.

What is doctrine of subrogation?

The doctrine of subrogation confers upon the insurer the right to receive the benefit of such rights and remedies as the assured has against third parties in regard to the loss to the extent that the insurer has indemnified the loss and made it good.

What are the terms of insurance?

What is the most important insurance principle?

Indemnity is a very important principle of insurance and stems form the value of the insurable interest.

What are the eight principles of insurance?

What is P&I stand for?

Protection and Indemnity insurance, or as it is more commonly known – 'P&I', is the policy ship owners purchase to protect them against liability claims from crew, passengers and third parties. Liability claims include those such as collision, property damage, pollution, environmental damage and removal of wrecks.

What is new Jason clause?

The new Jason clause requires the cargo owner to contribute to the general average. The cargo owner has to pay for damages as caused by the negligence of the ship/carrier owner. ... Thus, the new Jason clause protects the ship owners in case of damage caused by the negligence of the shipowner or the crew.

What is called jettisoning of cargo?

marine. Act of throwing cargo or equipment (jetsam) overboard in order to lighten the vessel or improve its stability in case of emergency.

How many principles are there in marine insurance?

The generally used principles of marine insurance include six principles. But the principle of good faith is considered an essential mandate commonly agreed among all the parties involved.

How is marine insurance calculated?

First, determination of the shipment value or the cost of freight. Then add 10% for the escalation costs. The total value obtained and multiplied by the insurance premium, quoted by the insurance provider. The final value obtained is thus, the amount to be payable as a premium.

Who needs marine insurance?

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. Depending on your preference of insurance provider you may insurer the items up to a certain limit above the invoice value of the insurer.

What are excluded losses under the marine insurance?

Again the Act prefaces the exclusion with: 'Unless the policy provides,' then goes on to state that '… the insurer is not liable for any loss caused by ordinary wear and tear ordinary leakage and breakage, inherent vice or nature of the subject matter insured, or for any loss caused proximately by vermin or rats, or ...

What is duration clause in marine insurance?

The Duration clause is markedly different. The risk under IWC attaches only when the cargo is placed on board the oversea vessel and terminates on the subject- matter being discharged from the vessel at the final port/place of discharge OR 15 days after arrival of the vessel at such port/place of discharge.