Different Types of Marine Insurance & Marine Insurance Policies
Marine Insurance is extremely wide and consists of marine insurance and myriad types of marine insurance policies depending upon the transporter's necessities, desires, and specifications.
NEED FOR MARINE INSURANCE
Maritime insurance is obligatory for ships and ship owners to manage the chance of any unfortunate event like accidents, harm to property, death of passengers, etc.
VARIED MARINE INSURANCE
Several styles of marine insurance are offered on the basis of the client's demand pertaining to the sort of business, owners, charterers, etc.
- Hull Insurance: It is taken against loss of the vessel, furniture, articles, etc.
- Machinery Insurance: It covers the machinery and claim are settled after a thorough survey. Hull and machinery are together called the hull and machinery insurance (H & M) which also covers war and strike risk.
- Protection and Indemnity Insurance: This P and I insurance of ship owners include liabilities towards 3rd party which is not covered under H and M. Protection covers the ownership of vessel and indemnity includes the cover to hired ship.
- Liability insurance: It offers compensation in case of any unfortunate crashing, colliding, attack, etc. of the ship.
- Freight, Demurrage, and Defense (FD&D) Insurance: This insurance cover claims related to assistance and legal cost for anything not covered under hull and machinery or protection and indemnity,
- Freight insurance: It protects the freight amount of merchant vessels due to loss of cargo, accident, etc.
- Marine Cargo Insurance: It covers marine cargo and other articles of the ship and protects in case of cargo loss, delay in a voyage, unloading delay, etc. There is third party liability attached to Marine Cargo insurance which includes any damage caused to port, ship or other transportation because of hazardous cargo.
The time period for the claim: According to the policy, there is a limit on time for claiming compensation and for taking action from the date of the incident. Insurance cover for the newly built ship is generally one year from the date of yard delivery
MARINE POLICY
The marine policy is provided by insurance companies with the aim to offer various choices to the clients for his cargo as well as the ship. Several marine insurance policies are:
- Voyage Policy: This policy covers a specific voyage.
- Time Policy: A policy with a particular time limit of one year usually.
- Mixed Policy: It is a mixture of time and voyage policy along and offers favors of each.
- Open / Unvalued Policy: The cargo's cost is absence in the consignment and the claim depends upon the inspection and valuation in case of any loss, accident, etc.
- Port Risk Policy: It covers the safety and security of the ship at the time of stationing in port.
- Wager Policy: In the absence of any written insurance policy, a wager policy does not provide any fixed terms. In case of damages, the reimbursement is paid only if it worth any claim, otherwise, no compensation is made.
- Floating policy: This policy is the most favorable for the clients that often travel in cargo transportation. An amount is mentioned against the claim irrespective of the damages.
- Single Vessel Policy: It provides coverage to 1 ship /vessel of the owner.
- Fleet Policy: It covers several ships in hand by one
- Block Policy: The cargo owner is protected towards damage, loss, etc. of the cargo transported through rail, road, or sea.
Conclusion:
Marine insurance is quite complex and provides various services and policies towards cargo and ship business. At the same time, it is important to select the right kind of insurance and policy to save cost, expenses, etc
