Marine insurance is the oldest form of the insurance business. Marine insurance covers losses of ships, cargoes, freight, etc. The risk insured against are those commonly known as perils of the sea, such as storm, the collision of one ship against another, etc.. It is a device to secure protection from the sinking of a ship in water, piracy, etc.
Subject matter of Marine Insurance:
- Hull insurance: Hull refers to the frame or body of the ship. It is issued to cover the losses against the structure of the ship. This policy is for 12 months.
- Cargo insurance: cargo means goods carried in a ship in the Shipment. When the goods are transported from one place to another then it forms the subject matter. This is known as cargo insurance.
Marine insurance is one of the most important insurance. This policy protects from the risk of destruction of the ship, piracy, collision, burning, and sinking of the ship, etc. Insurable interest must exist at the time time of loss and this policy can be transferred from one party to another.
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