What is Marine Insurance under insurance

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Marine insurance is an agreement by which the insurance company or under writer agree the indemnify the owner of the ship or the cargo against the risk involved in marine cargo and ship, it covers alarge number of risks such as sinking of ship, burning of ship, sea dacoitee loss from stromy wind etc.

Characteristics of marine insurance

  • Cosideration
    • insured is under obligation to pay certain amount periodically to the insurer in consideration for accepting the risk.
  • coverage of insurance
    • In marine insurance , cargo, ship and freight(transport) can be insured.
  • mode of insurance
    • The insurance may be for single journey or number of journey or for specific period of time.
  • Condition for compensation
    • The insured is compensated only when the loss is occured to the ship or cargo. It also include third party insurance.

Scope of marine insurance

Cargo insurance

  • The term cargo refers to goods carried in a ship in course of shipment, the insurance which cover the risk such as fire and other perils, any loss incurred to cargo during transportation from one court to another court is indemnified by the insurance company.

Freight insurance

Freight refers to payment recieve for the transportation of goods.

Dedicated freight corridor (DFC)

Example: Making new railways tracks only for transportation of goods. The policy is taken by freight reciever to protect freight purchase, if the ship fails to reach the destination due to marine perils, the freight reciewver losses the freight , hence the freight insurance is a remedy to avoid a risks.

Hull insurance

It is insurance of ship against the risks of sea transportation, A ship may be exposed to various risk such as: sinking, burning, colonism, explosion, etc.

The marine insurance act, 1963

Section 3 Definition of marine. Insurer-> insured ( Indemnifies by loss from incidental to marine adventure(2d).

section 4: Mixed sea and land risks : eaxample ,Any goods destined for Delhi to london then it will go from delhi to gujrat then gujrat to london by ship and by road or rail.

  • Section 5
    • lawful marine adventure
      • example: OPM or human trafficing
  • section 6
    • avoidance of wagering contracts, presence of insurable interest in insurance contract i.e actual loss.
      • example: Indian wins- not insurable interest but winor loss – will be that insurable interest amount of win and loss.
    • Contract by wag of wager is void, your ship safely will go from one port to other is wagering agreement . Your ship if got damaged then Iwill pay that amount to your i.e marine insurance.
    • there should be insurable interest
    • if there is written interest or no interest i.e wagering agreement there should be further interest not only in policy interest like -10,00,000 ploicy , it should be interest of 15,000,00 or 20,00,000.
    • Insurer must get a premium without given premium that will be wagering agreement.
  • Section 7
    • insurable interest defined
      • insured have an insurable interest, a person who have, leagl or equitable relation to the property ( both the parties involved have insurable interest).
  • Section 11
    • re- insurance
  • section 19
    • insurance is uberrima fidei.
    • if there is not a proper disclosure it can be avoided.
  • section 20
    • disclosure by assured
      • an insured/ assured have to disclose all the material circumstance which is known to him.
      • example: how old the ship, quality company everything should be disclosed because to fix the ordinary course of business because it presumed that he known and he should or ought to know.
    • material circumstance
      • the thing substance where the premium is decided or fix and decided matter insurer going to take that risk or not.
    • following circumstance need not to disclose in absence of inquiry, whwn insurer does not ask directly.
    • circumstances which dimishes the risk which decreses the risk.
      • example: new ship, route is clear no pirates.
    • which persumed to be known to insurer, if he asked insured have to disclose then.
    • insurer himself waved off the information.
    • superfluous( not so necessary)
    • If the circumstance is not disclosed it may be material or not be in case a question of fact.
    • circumstance
      • it include any communication made to, or information received by the assured.
  • section 21
    • disclosure by agent afecting insurance.
  • section 22
    • contract must be emboided in policy the policy should be in detail.
  • section 25
    • what ploicy must specified
      • name of assured
      • subject matter insured and risk insured against.
        • cargo, ship, freight, etc.
    • voyage or period of time.
    • sum or sums insured.
    • name of insurer or insurers.
  • section 26
    • signature of insurer
      • marine policy must be signed by or on behalf of the insurer.
      • where ploicy is subscribed by or on behalf of 2 or more insurer, each subscription, unless the contrary be expressed.
  • section 27
    • voyage and time policies
      • time policies are for 12 months not more than 12 month.
      • it should be renewed by passing or next per year.
      • the contract is to insured the sunject matter gor a definite period of time is called time policy.
      • the contract is to insure the subject matter at and from or from one place to another or other is called ” voyage policy”
  • section 28
    • designation and subject matter, the subject matter should be told very clearly.

reference: orginal notes written by Riya Tiwari student LLB from United university Prayagraj

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