Prof Mahesh KumarAmity Business Schoolprofmaheshkumar@rediffmail.com
Historically marine insurance were of twotypes:
Bottomary loanwhich was a transactionprotecting an owner from financial loss if hisship was destroyed. Premiums were calculatedon the basis of intuition instead of mathematical estimates.
Respondentia loanswere comparable tobottomary loans. The difference being amerchant would take a loan using cargo as acollateral. The money lender for a premium inaddition to the regular interest charged, agreedto forgive the loan if the cargo was lost.
The Indian Marine Insurance Act came intooperation on August 1, 1963 and is acomprehensive document containing allregulations of marine insurance business in India.
Prior to this Act, the insurance business wasconducted on the basis of the principles of General Contract Act and English MarineInsurance Law.
Marine insurance includes two types of insurancei.e. Cargo insurance and hull insurance.