Page 35 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

Marine insurance defined

A contract of marine insurance is an agreement whereby the insurer undertakes to

indemnify the assured, in the manner and to the extent thereby agreed, against

marine losses, that is to say, the losses incidental to marine adventure.

Marine insurance policy is a legal document and apart from Marine Insurance Act it

is also governed by the Indian contract act. In International trade it stands as a

collateral security by the financial institutions. With its easy negotiability it may pass

or change hand from one hand to another even when the goods are in mid sea.

Unlike other types of general insurance, marine cargo policies are freely assignable

for which prior consent of the insurer is not necessary. Even a blank endorsement on

the back side of the policy is sufficient for negotiation and so it is a negotiable

instrument.

A marine policy must specify

(1) the name of the assured, or of some person who effects the insurance on his

behalf;

(2) the subject-matter insured and the risk insured against;

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