Marine Insurance

Definition: A contract of marine insurance is an agreement whereby

the insurer undertakes to indemnify the assured, in the manner and to
the extent thereby agreed, against marine losses, that is to say, losses
incidental to marine adventure. S-3
Insurable property: For the purpose of the Marine Insurance Act,
insurable property means any ship, goods or other movables, which are
exposed to marine perils. S-2(c)
Maritime perils: "Maritime perils" means the perils consequent on, or
incidental to, the navigation of the sea, that is to say, perils of the seas,
fire, war, perils, pirates, rovers, thieves, captures, seizures, restraints,
and detainment's of princes and peoples, jettisons, barratry, and any
other perils, either of the like kind or which may be designated by the
policy. S-2(e)
Features and Requisites of a Marine Policy:
1. Essential elements: A contract of marine insurance must fulfill all
the essential elements of a valid contract.
2. Time of contract: A contract of marine insurance is deemed to be
concluded when the proposal of the assured is accepted by the
insurer whether the policy is then issued or not.
3. The policy: The contract must be written in document called a sea
policy or a marine policy. Insurable interest: A marine policy is
enforceable only if the policy-holder has an insurable interest at
the time when the claim is made.
4. Good faith: The contract of marine insurance is a contract
uberrimae fidei and the insured must disclose all material facts. S-
19
 5. Not to be wagering contract: The contract must not be a
wagering contract. A contract of marine insurance is deemed to
be a wagering contract where the assured has not an insurable
interest as defined by the Act.
Types of marine insurance policies

 Voyage policy: Where the contract is to insure the subject

matter, “at and from” a place, or from one place to another or
others, the policy is called a voyage policy.
 Time policy: Where the contract is to insure the subject matter
for a define period of time, the policy is called time policy. The
time policy made for any time exceeding 12 months is invalid. S-
27
 Valued policy: A valued policy is a policy which specifies the
agreed value of the subject matter insured. S-29
 Unvalued policy: An unvalued policy or a open policy is a policy
which does not specify the value of the subject matter insured. S-
30
 Floating policy by ship or ships: A floating policy is a policy which
describes the insurance in the general terms and leaves the name
or names of the ship or ships and other particulars to be defined
by the subsequent declaration.
 Wagering policies: Sometimes marine insurance contracts are
entered into with persons who have no insurable interest. Such
policies are void according to law but the insurer may fulfill his
obligation out of consideration of honor.