Image: Types of Marine Insurance Policies

1. Voyage Policy: In this case the subject

matter is insured for a particular voyage.
Ex.: a voyage policy from Bombay port to
Hongkong port.

2. Time Policy: In this case the subject matter

is insured for a particular period not
exceeding twelve months. Ex., a time policy
from 1st January, 2016 to 31st July, 2016.

3. Valued Policy: In this case, the agreed value

of the subject matter is insured. In the event
of loss the Insurer pays only for the loss not
exceeding the value mentioned in the policy.

4. Open or Unvalued Policy: In this case the

value of the subject matter is not specified. It
will be ascertained at the time of actual loss.

5. Mixed Policy: In this case the subject matter

is insured for a particular period and for a
certain voyage. Ex. Mixed Policy may be
taken covering the voyage from Bombay to
Hongkong not exceeding 30 days.

6. Floating Policy: In this case the policy is

taken for a sum to cover several shipments.
The name of the ship and particulars of
shipments are declared afterwards; This
policy is also known as ‘Open Policy‘. This type
of policy cannot be issued for immovable
property.

7. Wager or Honour Policy: In this case the

subject matter is insured without the
assured having any insurable interest and
hence the policy is void. It resembles a
wagering contract. Losses are indemnified
depending upon the honour of the Insurer.
Hence it is also known as ‘Honour Policy‘.

8. Fleet Policy: It is the policy under which

several ships belonging to one owner are
insured under the same policy.

9. Block Policy: In some case, the businessmen

may be interested in insuring the risks of
land and sea. A single policy covering all the
risks of rail, road, and sea transport is
known as block policy.

10. Port Policy: Generally owners of the ships

take this policy. It covers the risk of the ship
when it is in a port during a specified period.
11. Single Vessel Policy: This policy covers the
risk of one vessel of the insured.

12. Named or Specific Policy: This policy

contains the name of the ship by which the
shipment is made and the policy covers risk
of that particular ship.

13. Port Risk Policy: It covers risks associated

with loss when the ship is anchored in a
port.

14. Currency Policy: It is a policy issued in

foreign currency. For e.g. if a policy issued
for an Indian ship is in terms of dollars, it is
known as currency policy.

15. Blanket Policy: It is a policy which is issued

for an amount of maximum protection. The
entire amount of premium is collected at the
time of grant of policy and is readjusted at
the end of the term of the policy in
accordance with the actual amount at risk
during the term.