What is marine insurance -
Marine Insurance is the oldest form of Insurance. According to Section 3 of the Marine Insurance Act, 1963 " 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."
Section 6 of Federal Marine Insurance Act S.C, 1993, C22 (Canada) "contract of marine insurance defined as-
1) A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the insured, in the manner and to the extent agreed in the contract, against-
(a) Losses that are incidental to a Marine adventure or an adventure analogous to a Marine adventure including losses arising from a land or air Peril incidental to such an adventure if they are provided for in the contract or by usage of the trade; or
(b) losses that are incidental to the building, repair or launch of a ship.
Types of Marine Insurance Policies -
Types of Marine Insurance Policy are as follows -
1) Voyage and Time Policy -
Where the contact is to Insure the subject-matter at and from, or from one place to another or others, the policy is called a "voyage policy", And where the contract is to insure the subject-matter for a definite period of time, the policy is called a "time policy" a contract for both voyage and time may be included in the same policy. A time policy which is made for any time exceeding 12 months is invalid. (Section 27 of the Marine Insurance Act.1963).
2) Mixed Policy -
A Marine insurance policy which offers, a client the benefit of both time and voyage policy is recognized as a mixed policy.
3) Valued Policy -
According to Section 29 of the marine insurance act 1963 - a policy may be either valued or unvalued. a valued policy is a policy which specifies the agreed value of the subject-matter insured.
4) Unvalued Policy -
In modern practice, these policies are rarely in existence. According to Section 13 of the marine insurance act 1963 " an unvalued policy is a policy which does not specify the value of the subject matter, but subject to the limit of the sum insured leaves the insurance value to be subsequently ascertained.
5) Port Risk Policy -
This kind of marine insurance policy is taken out in order to ensure the safety of the Ship while it is stationed in a port
6) Wagering Policy -
According to Section 6 of the Marine Insurance Act, 1963 every contract of marine insurance by way of wagering is void.
A contract of marine insurance is deemed to be a wagering contract-
(a) where the assured has not an insurable interest as defined in the said Act, and the contract is entered into with no expectation of acquiring such an interest; or
(b) where the policy is made "interest or no interest", or without further proof of interest than the policy itself, or without benefit of Salvage to the insurer, all subject to any other like the term:
Provided that, where there is no possibility of Salvage, the policy may be effected without benefit of Salvage to the insurer.
7) 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 Floating policy.
According to Section 31 of The Marine Insurance Act 1963, Floating policy is a policy which describes the insurance in general terms and leaves the name or names of the ship or ships and other particulars to be defined by the subsequent declaration. the subsequent declaration or declarations may be made by endorsement or on the policy or in the other customary manner
Establishment, Constitution and Capital of the Life Insurance Corporation of India
Assignment of marine insurance policy