Page 38 - Insurance Times January 2018 Sample

ALL YOU NEED TO

KNOW ABOUT MARINE

INSURANCE BEFORE

YOU OPT FOR IT!

(Risk covered, demand, need, existing coverage)

M arine Insurance is the oldest form of insurance 3) Any liability to a third party may be incurred by the

owner of or other person interested in or responsible
and is said to be the foundation base of all
the other types of insurance policies. Marine
for insurance property by reason of maritime perils.
insurance policies have been used since ages
by traders/merchants/ship owners/other Marine insurance covers the losses or damages caused to
contingent interests for protecting their varied maritime ships, terminals and any transport or cargo by which goods
interests. Marine insurance protects the insurers against the are transferred, acquired, or held between different points
losses or damages against the marine risks during the of origin and final destination. The term also includes inland
marine adventure through multiple modes of transportation. marine but it is mostly used in the context of ocean marine
insurance. Marine insurance is a haven for transporters and
According to section 2(d) of Marine Insurance Act, 1963, shipping corporations because it helps to lower the aspect
Marine adventure includes any adventure where: of financial loss due to cargo loss.
1) Any ship, goods or other movable referred to as
insurable property is exposed to maritime perils, It is a comprehensive cover to protect the loss or damage
to goods while being transported from road, rail, air, or sea.
2) The earning or acquisition of any fright, passage money, It includes separate cover for the loss or damage to the
commission, profit or other pecuniary benefit, or the cargo, the ships, freight, and Inland transit. Sharing of losses
security for any advances, loans or disbursements is
of few among many is the essentiality of the Insurance i.e.
endangered by the exposure of insurable property to
sharing burden of few unfortunate in the commonality
maritime perils,
environment who is exposed to the same risk.
About the author In modern times Marine Insurance covers all the risks of the
maritime property at an agreed price meeting the
Harpreet Singh requirements of Sales contracts (INCOTERMS) between the
Head - General Insurance overseas traders for LC/banking purposes and become a
Sridhar Insurance Brokers (SIB) India
facilitator of conduction of the modern global trade. The
38 The Insurance Times, January 2018

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