Page 34 - The Insurance Times November 2024

Gunford: Marine

Insurance Fraud or

Purely Coincidence!!

- Historical Maritime Fraud

Dr. Soumi Mukherjee
M.A., PH.D

Global Maritime trade is affected hugely by the policies of maritime insurance being followed in
various nations. An insurance policy is a contract in which an individual or entity (known as an
insured) receives monetary reimbursement against losses, emerging from the occurrence of an event,
from an insurance company (known as an insurer), generally in exchange for a premium.

G lobal Maritime trade is affected hugely by the his money back with a premium. This laid the foundation

policies of maritime insurance being followed in
stone for the outset of Marine insurance. Marine Insurance,
in a somewhat similar way as we know them now, was first
various nations. An insurance policy is a contract
in which an individual or entity (known as an
insured) receives monetary reimbursement against losses, found in Middle Ages in Europe.
emerging from the occurrence of an event, from an In 1688, the first official insurance company was formed in
insurance company (known as an insurer), generally in London in a coffee shop that was famous amongst
exchange for a premium. Marine insurance alludes to a merchants and ship owners and grew to be immensely
contract by which the insurer promises to reimburse the successful. And that's how the Insurance policies evolved. It
insured a loss resulting from "losses incidental to marine is a well-established reality that when the Indian Marine
adventure". It provides coverage against any loss/harm to Insurance Act of 1963 (MIA 1963) was drafted, the drafters
ships, terminals, cargo, etc. had the Marine Insurance Act of 1906 (MIA 1906) of the
English Law at the back of their heads. The 1963 and 1906
It is said that Marine insurance is the primary insurance Acts are closely similar or indistinguishable from each other.
policy. In Babylonian times (2100 B.C.), the genesis of the The principles governing the 1906 English Act are duplicated
initial insurance policy was observed whereby the merchants in the 1963 Act of India. The Parliament passed the MIA
assured a sum to guarantee the safe arrival of their goods. 1963 to ensure the smooth functioning of shipping which saw
Later, around 300 B.C., the concept of "Bottomry" came a huge expansion right after industrialization.
around. It was an arrangement by which the owner of the
ship borrows money for repairing or maintenance of the ship The principle of Indemnity is considered to be the backbone
and in return pledges the ship as security. If something of the insurance law and industry. It simply means to put
happened to the ship by way of any perils, the lender shall the insured in the place he would have been had the loss
lose his money but if the ship returns, the lender shall get not occurred. There exist broadly two kinds of marine

30 November 2024 The Insurance Times