Page 33 - Ebook IC S01
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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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