MARINE INSURANCE

• An Insurance Contract to indemnify losses

incidental to marine (Sea / Ocean) risks
like:
• Losses to Vessel / Ship
• Cargo / Goods in transit
• Freight / Carriage on Goods
 THE PROPERTY MEANS
• The Ship / Vessel
• The Goods in transit
• The Commission on goods
• Profit or the pecuniary benefit
• Security for an advance
• Loans against…..
Which are exposed to marine perils.
 MARINE PERILS
Sinking & Grounding of Ship / Vessel, Boat
or Craft
Collision of Ships / Vessels / Boat with other
objects
Discharge of cargo at a port of distress
Volcanic eruption
Delay, wrong delivery ,war, theft etc.,
 AS A GENERAL CONTRACT
• Offer
• ACCEPTANCE
• CONSIDERATION
• LAW FUL OBJECT
• POSSIBILITY OF PERFORMANCE
• COMPETENCY TO CONTRACT
 SPECIAL FEATURES
• INSURABLE INTEREST
• It is the monetary relationship with the
insured property
 WHO WILL HAVE INSURABLE
INTEREST?
• The owner of the Ship / Vessel
• Owner of cargo / goods
• Creditor who has advanced money
• Mortgager – Bank / Institution granted loan
on Ship / Vessel / Cargo / Goods
• Master / Captain /Crew for wages
• Bailee – Ship owner is X ltd – user is Y ltd
• Insurer for re Insurance
 OTHER FEATURES

• Utmost good
• Subrogation
• Warranties
• Proximate cause
• Assignment
 TYPES OF POLICIES
• VOYAGE POLICY – It is related to route
traveled by the ship/vessel for eg.,
Chennai to Cochin.
• Other than this route, insurance coverage
will not be there for loss except some
special permission is obtained
• TIME POLICY – It refers to the period for
which the policy is taken for eg., from 1st
Jan 2007 to 31st Dec 2007.
• After the expiry of the time, insurance
coverage will not be there
• VOYAGE & TIME POLICY – In this case
both route and time will be considered. For
eg., Cochin to Mumbai during 1st Jan 2007
to 31st Dec 2007.
• On violation of route/after expiry of the
period, claim will not be paid.
• MARINE DELAYS POLICY – In this case
claim can be made due to delay in delivery
caused by certain extraordinary marine
situations like cyclones etc.,
 Recent events
• ONGC ship drowned with crude oil.
• Some other ships also drowned elongs to
other countries carrying crude from guf.
• Very recently, Somalian pirates took
control of ships for many days, for which
Insurance compensation is received for
delay in delivery.