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Insurance
Asked a question 2 years ago

What is Marine Insurance?

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A marine insurance contract is an

agreement whereby the insurer

undertakes to indemnify the insured

in the manner and to the extent thereby

agreed against marine losses. Marine

insurance provides protection against

loss by marine perils or perils of the sea.

Marine perils are collision of ship with

the rock, or ship attacked by the

enemies, fire and captured by pirates

and actions of the captains and crew of

the ship. These perils cause damage,

destruction or disappearance of the

ship and cargo and non-payment of

freight. So, marine insurance insures

ship hull, cargo and freight. Thus, it is

a device wherein the insurer undertakes

to compensate the owner of a ship or

cargo for complete or partial loss at sea.

The insurer gurantees to make good the

losses due to damage to the ship or cargo

arising out of the risks incidental to sea

voyages. The insurer in this case is known

as the underwriter and a certain sum of

money is paid by the insured in

consideration for the guarantee/

protection he gets. Marine insurance is

slightly different from other types. There

are three things involved i.e., ship or hull,

cargo or goods, and freight.