General InsuranceMarine Insurance
WHAT IS MARINE INSURANCE?
Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination.... When goods are transported by mail or courier, shipping insurance is used instead.
Marine insurance is slightly different from other types. There are three things involved i.e., ship or hull,cargo or goods, and freight.
(a) Ship or hull insurance: Since the ship is exposed to many dangers at sea, the insurance policy is for indemnifying the insured for losses caused by damage to the ship.
(b) Cargo insurance: The cargo while being transported by ship is subject to many risks. These may be at port i.e. risk of theft, lost goods or on voyage etc. Thus, an insurance policy can be issued to cover against such risks to cargo.
(c) Freight insurance: If the cargo does not reach the destination due to damage or loss in transit, the shipping company is not paid freight charges. Freight insurance is for reimbursing the loss of freight to the shipping company i.e., the insured.
