Page 33 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

Marine Insurance

Introduction

Marine insurance is the oldest form of insurance originating from England.

Merchants from different parts of London used to assemble in a coffee house

(Lloyd’s Coffee House) which gave birth to Lloyds Underwriters, contracting marine

insurance cover with the owners of sea-going vessels and merchants.

Lloyd’s is now the biggest international general insurance underwriter in the world.

Shipowners and merchants are not legally bound to insure their property against loss

or damage, nor are they bound to insure against their liabilities to third parties but

the modern method of financing, trade and shipping leave them with little or no

choice whatsoever.

The capital exposed to loss in modern ships with gigantic properties is such that few

shipping lines could or would, consider it desirable to carry the involved risks

themselves. Moreover, a considerable amount of tonnage is mortgaged to Banks and

other financial institutions, which obviously require insurance as co-lateral security.

Now a days Marine policies are obligatory in most of the transactions.

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