21/08/2018
DEFINITION:
A contract of marine insurance is a contract whereby the insurer undertake to indemnify the assured in a manner and to the extent thereby agreed against marine losses, that is to say, the losses incident to marine adventure (M.I.A. 1906)
A contract of marine insurance may by its express terms, or by usage of trade, be extended so as to protect the assured against losses on inland waters or on any land risks which may be incident upon any sea voyage. However, for our practical usage here, when we talk of marine insurance, we include air travels i.e. marine and aviation.
CLASSIFICATION:
We can classify marine insurance as being broadly divided into two; (a) marine cargo (b) marine hull.
Marine Cargo refers to the cargo i.e. the goods being carried by the vessels. In insurance cover, cargo includes the goods, the freight, handling charges, port duties on goods and insurance and a possible 10% of the cost of cargo.
Marine Hull refers to the vessel itself (ship/boat or plane) the engine or machinery, the third party and crew/passenger liabilities.
However, the liability aspects can be insured separately or even with another insurer.
TYPES OF COVER AND VOYAGE AVAILABLE
HULL POLICIES
These can be arranged on voyage or time basis. Voyage policies provide coverage for the craft from a specific port to another named port. It covers the craft against all marine time perils for the entire voyage irrespective of the time it takes to cover the distance. Policies can also be arranged on time basis. In this case, the cover is for a specific period irrespective of the distance or the route. Within the agreed period, the vessel is held covered against marine time perils.
CARGO POLICIES
There are three types of voyage cover available to the Cargo merchant:
The cover can be from the port of loading to the port of discharge- port to port cover
Cover can be provided from the port of loading to the warehouse of the importer which may involve inland carriage of goods after discharge.
Arrangement can be from the warehouse of the exporter to the warehouse of the importer. In which case inland carriage will be involved on both sides of the trip. This is a combination of both sea and air voyage and the land transit by rail or motor vehicles. The rates of these will vary according to the exposure.
TYPES AND SCOPES OF COVER:- CARGO
Since you are more likely to have more request for cargo cover we have to deal in greater details with the various types of cover available. There are three types of cover available as provided in the three institute clauses A, B and C. Clause ‘A’ has the widest cover replacing the former All Risks cover while clauses B and C replace the F.P.A. and Total Loss only cover . Each scope of cover can be issued to cover the cargo for any
rm of voyage. These three institute clauses are now considered in turn beginning from the least scope i.e. I.C.C. ‘C’ and progressing to the I.C.C. ‘A’
