What is Marine Insurance?
Marine insurance is a contract in which the insurer agrees to compensate the insured against maritime losses in the way and to the extent agreed upon. Maritime insurance protects against loss caused by marine hazards or perils of the sea. Marine risks include ship collisions with rocks, ship attacks by opponents, fire and capture by pirates, and the captains’ and crew’s activities. These risks result in ship and cargo damage, destruction, or disappearance, as well as non-payment of freight. So, marine insurance protects the ship’s hull, cargo, and freight.
In a marine insurance contract, the insurer (also known as the underwriter) agrees to provide payment to the insured (often the owner of a ship or cargo) in the case of a complete or partial loss at sea. The insurer pays a certain amount in consideration for the guarantee and protection he receives. Protection against loss caused by marine or marine perils is provided by marine insurance.
Table of Content
- Importance of Marine Insurance
- Types of Marine Insurance Policies
- Main Elements of Marine Insurance Contract
- Advantages of Marine Insurance:
- Disadvantages Marine Insurance: