Page 35 - Ebook IC S01
P. 35

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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