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of premium is paid in the beginning of the policy. This policy describe the nature of goods
insured, specific route, ports and places of voyage. It covers multiple risks on one property or
it covers many properties under the policy.

6) Port Risk Policy:
Port risk policy covers all types of risks of a vessel while it is anchored at the port for a par-
ticular period of time. This policy is applicable till the departure of the vessel from the port.
7) Composite Policy:
This type of policy is purchased from more than one insurers. The liability of each insurer is
separate and distinct. This policy is taken when the amount of insurance is very high.
8) Single Vessel Policy:
This policy is suitable for small ship owner having only one ship or having one ship in different
fleets. It covers the risk of one vessel of the insured.
9) Fleet Policy and Block Policy:
In fleet policy, several ships belonging to one owner are insured under the same policy. In
block Policy, the cargo owner is protected against damage or loss of cargo in all modes of
transport through which his/her cargo is carried i.e. covering all the risks of rail, road, and sea
transport etc.

Find out different marine policies taken by a businessman or trader in your area.

III) Fire Insurance:
Meaning:
A fire insurance contract is an agreement whereby the insurer in return for consideration
undertakes to indemnify the insured against the loss to property due to fire. Any property which is
subject to damage by fire can be insured against fire. The loss due to fire, lightening and explosion
is also covered by fire insurance.

Types of fire insurance Policies :
1) Valued Policy:
Under this policy, value of the subject matter of insurance is agreed upon at the time of mak-
ing a contract. The insurer has to pay specific amount or value irrespective of amount of loss
caused due to fire. Valued policy is taken for those goods whose value becomes difficult to
calculate in case of loss by fire. For example, policy can be taken for art work, sculptures,
paintings etc.
2) Average Policy:
It is policy which contains an average clause. If the subject matter is not insured as per the
exact market value or it is undervalued, then the insurer is liable to pay that percentage of the
loss for which it is insured.
For example, If a policy is taken for Rs.One lac against the market value of Rs. Two lacs and
loss incurred due to fire is Rs. Fifty thousand then the insurance company will pay Rs. Twenty Five
Thousand.

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