Marine insurance indemnifies vessel owners against the loss or damage of ships at sea or on Inland Waterways. There are 4 types of marine insurance namely- Hull Insurance, Cargo Insurance, Freight Insurance, Liability Insurance.

Meaning and Definition of Marine Insurance :

         Dictionary meaning of the term insurance is coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.

         Section 3 of the Marine Insurance Act, 1963 defines Marine Insurance as "  A contract of marine insurance is an agreement whereby the insurer undertakes to indemnify assured, in the manner and to the extent thereby agreed, against marine losses,  that is to say, the losses incidental to Marine Adventure."

Types of Marine Insurance : 

There are four types of marine insurance which are as follows -

1) Hull Insurance.

      Hull insurance is for loss or damage to the vessel. Hull insurance covers the insurance of vessel (hull)  and its machinery, for example-  Machinery, Tools, furniture, fuel etc.      

2) Cargo Insurance - 

     Cargo insurance is for loss or damage to goods. Cargo insurance includes the cargo  or goods contained in the ship and the personal belongings to the crew and passengers

3) Freight Insurance -

    Freight Insurance provides protection against the loss of fright. The owner of goods is bound to pay Freight,  according to the terms of the contract, but only when the goods are safely delivered at the port of destination. In case the cargo is stolen or damaged or ship is lost on the way, the shipping company losses the freight. Freight Insurance is taken to guard against such risk.

4) Liability Insurance

    Liability insurance is one in which the insurer undertakes to indemnify against the loss which the insured may suffer on account of liability to a third party caused by the collision of the ship and other similar hazards.

See also...

Types of Marine Insurance Policies 


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