Marine Insurance

1. Marine Insurance
Marine insurance is the  oldest type of insurance dating 5000 years back. it was originally meant for giving insurance coverage to the loss of ships and cargo at sea. in more recent times, it has been split up into two major forms of transportation coverage. (a) Ocean Marine (b) Inland Marine.

(a) What is an Ocean Marine? The ocean marine insurance is a highly specialized business in its
operation and is primarily operated by big insurance companies.
ocean marine insurance covers almost all losses to the ship and
cargo while in port or at sea. The main ocean perils include sinking,
capsizing, stranding, collision, theft and fire etc. in each marine
insurance contract, the insurer (insurance company) on the payment 
of a premium by the insured, undertakes to give coverage against loss
due to maritime perils. the terms and conditions of the contract are 
written in a document called marine insurance policy. In an ocean marine
insurance, coverage is provided for (1) ships interested party.

(b) Inland Marine. Inland marine insurance provides coverage to the 
transportation of goods by rail, truck, theft, fire, windfall, flood,
lightning etc.
the inland marine insurance policy is written on all risks basis of it
may be written to insure only against specified inland marine perils.
The procedure of getting marine insurance is very simple. the person 
who wants to get the cargo insured, writes to a few financially sound 
companies to quote their lowest rates of risk. on receipt of quotations,
he contracts the company which quotes the lowest rates. the company
fills up the necessary forms and on receipt of premium accepts the
marine risk. the marine insurance policy is then given to the insured
to recover the claim in the event of a loss.

Marine Insurance .
           Marine insurance is the oldest type of insurance it covers 

(1) Ocean marine and
(2) Inland Marine

(1) Ocean Marine insurance. it is a highly specialized business. the insurance companies covers practically all perils of shipments on the high seas. in the ocean marine insurance, the coverage is provided for ship and its contents.

(2) Inland Marine Insurance. An inland marine insurance policy provides coverage to losses caused by fire, theft to goods being transported by rail, truck, etc    

Types of marine insurance.
     There are three types of marine insurance (i) cargo insurance (ii) hull insurance (iii) freight insurance.

(i) Cargo insurance. It is an insurance of the goods shipped by the shipper.

(ii) Hull insurance. it is an insurance of ship itself against sea perils

(iii) Freight insurance. in many cases, freight is paid on the arrival of ship at the port of destination. if the cargo is damaged or lost, the shipping company will lose the freight. Freight is, therefore, also covered in marine policy. etc