Marine Insurance | Types Of Marine Insurance | Principles Of Marine Insurance | The National TV
- by Aditi-Harshraj
- May 04, 2020 17:22
Marine Insurance is the type of insurance policy that provides coverage against any damage/loss caused to cargo vessels, ships, terminals. Some of the marine Insurance providers in India are Future Generali Marine Insurance, Bajaj Allianz Online Marine Insurance, ICICI Lombard online Marine Insurance, Reliance Marine Policy, and many more.
It is further categorized as -
1. Marine Cargo Insurance
2. Hull Insurance
3. Liability Insurance
4. Freight Insurance
5. Marine Cargo Insurance
This type of insurance policy is necessary for all the owners of the ship who work for commercial or transportation purposes. It covers the risk during transits by water, Air, Road or Rail, Registered Post Parcel, or courier. The clause of marine Cargo Insurance includes Actual Total Loss, Constructive Total Loss, Particular Average, General Average, Collision Liability, Expenses such as Survey Fees, Reconditioning Costs, Forwarding Expenses, Sue and Labour, etc.
There are certain things which are not covered under -
a. Compensation is not provided for any intentional loss/ damage.
b. When the packaging quality of the cargo isn't appropriate.
c. Wear and tear if goods in transit
d. Any loss or damage resulting due to insolvency, delay in cargo. Hull Insurance Marine hull insurance is an insurance policy that is specifically designed to cover ship damage expenses where the ‘Hull’ refers to the main body of the ship. Into the definition of the hull, marine hull insurance also includes fixtures attached to the hull of the ship as a functional part.
The major risks that are covered under hull and machinery insurance include the following -
a. Damages to the hull, machinery, and equipment onboard the vessel.
b. Salvage and applicable charges.
c. Drydocking expenses.
d. Disbursement losses.
e. Costs for marine surveys to assess the damage of potential damage.
f. Costs for collision defense and attacks.
g. Legal costs and labor costs.
h. The total loss in terms of actual or constructive loss of the vessel.
i. Ship-breaking losses.
j. Fittings and freight.
Liability Insurance: Liability insurance provides the insured party with protection against claims resulting from injuries and damage to people or property. Liability insurance policies cover both legal costs and any payouts for which the insured party would be responsible if found legally liable. Intentional damage and contractual liabilities are generally not covered in these types of policies.
Types of liability insurance -
1. Employers' liability and workers' compensation is mandatory coverage for employers which protects the business against liabilities arising from injuries or the death of an employee.
2. Product liability insurance is for businesses that manufacture products for sale on the general market.
3. Indemnity insurance provides coverage to protect a business against negligence claims due to financial harm resulting from mistakes or failure to perform.
4. Director and officer liability coverage covers a company's board of directors or officers against liability if the company should be sued.
5. Umbrella liability policies are personal liability policies designed to protect against catastrophic losses.
6. Commercial liability insurance is a standard commercial general liability policy also known as comprehensive general liability insurance.
7. Comprehensive general liability (CGL) policies are tailor-made for any small or large business, partnership or joint venture businesses, a corporation or association, an organization, or even a newly acquired business.
Freight Insurance: This type of insurance policy provides additional protection to freight.
It doesn't cover-
(a) The loss was an act of God.
(b) The loss was an act of the public enemy.
(c) The loss was an act of the shipper.
(d) The loss was an act of public authority.
(e) The loss was due to the inherent nature or vice of the goods themselves.
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