Marine Insurance as we know it today, can be described as MOTHER OF ALL INSURANCES.

It was firstly introduced in ENGLAND, owing to the frequent movements of ships over high seas for commerce and trade.

Prior to the development of MARINE INSURANCE, the people across the world, had a system of pooling their contributions so that if any one of them suffers loss during voyage could be paid incurred loss.

MARINE INSURANCE

By:YaSiR QuResHi

Marine Insurance…?Introduction

Marine Insurance as we know it today, can be described as MOTHER OF ALL INSURANCES.

It was firstly introduced in ENGLAND, owing to the frequent movements of ships over high seas for commerce and trade.

Prior to the development of MARINE INSURANCE, the people across the world, had a system of pooling their contributions so that if any one of them suffers loss during voyage could be paid incurred loss.

Marine Insurance…? (Continue…)

It involves LARG SHIPING COMPANIES that require protection. Not only for their cargo fleet but also to the cargo being carried in each of these ships.

The value of each ship and the cargo carried therein, may be costing millions of rupees to the owners.

“MS Freedom of the Seas” World’s Biggest Passenger-ship 4300 Passenger capacity inside

… TITANIC CRASHED …

What is Marine Insurance…?

Insurance connected with the transportation of goods, is one of the oldest and most important form of insurance

The value of goods shipped by the business firms each year costs billions of rupees. These goods are exposed to damage or loss from numerous perils associated with transportation.

Some of the Insured Perils are:

Fire, Explosion

Breakerage

Accident

Theft

Non-delevery

What is Marine Insurance(Continue…)

Marine insurance is a type of insurance that covers risks of boats and ships, as well as their cargo and in some instances the places where the boat or ship is docked

It is a contract of guarantee between the insurer and the insured in which the insurer, against the premium, promises to compensate the insured against the loss caused by sea peril.

MARINE POLICIES

KINDS OF MARINE POLICIES

1.Voyage Policy2.Time Policy3.Mixed Policy4.Valued Policy5.Unvalued Policy6.Block Policy7.Fleet Policy

1. Voyage Policy

Under this policy the property is insured for specific voyage (journey). Voyage Policy usually provides cover for one trip, and usually protects only the cargo and not the ship (vessel).The time is not considered at all. Such a policy may cover the risk at the port or from one port to another.

2. Time Policy

Under this policy the property is insured for a specific period of time, e.g. 1 year. The ship can make any number of voyages during the specified time. ………….OR IN OTHER WORDS…………...

Insurance policy that covers risks arising during a specified period (for example 1 year). In contrast a voyage policy covers risks that arise during an entire transit period irrespective of how long it takes.

3. Mixed Policy

It is a combination of voyage and time policies. It covers the risk of loss during a particular voyage for a specified time. For example, ship may be insured for a voyage between Karachi and London for a period of 8 months.

4. Valued Policy

Under this policy, the value of goods is stated. In case of total loss the insurer is liable to pay the total sum assured, without demanding the proof of actual loss.

5. Unvalued Policy

Under this policy, the value of goods is not mentioned. In case of loss the value of goods is proved by the owner and the insurer is liable to pay the actual loss.

6. Block Policy

It covers the risk of loss from the production of goods to the port of destination.

7. Fleet Policy

The fleet policy covers the risk of all the ships owned by a company. The owner of many ships may buy a single policy to provide protections to all the ships instead of buying different policies for each ship.

Warranties in

Marine Insurance

There are Three Warrantees in Marine Insurance

Which are …

1. Sea-Worthiness of the Ship

2. Legality of the voyage

3. Non-deviation

01. Sea-Worthiness of the Ship

It is essential that ship should be worthy of transporting goods to the destination. It is responsibility of the shipping company to make the ship sea-worthy.

02. Legality of the voyage

The object of the voyage should be legal. The

ship must not be used for illegal voyage. E.g.

trading with enemy, smuggling, etc.

03. Non-deviation

It means that the ship should not deviate from the specified route of the voyage. The deviation is allowed in the following circumstances:

When the insurance policy permits so.When it is caused beyond the control of captain.When it is essential for safety of ship and cargo.When it is necessary to save the life of the person on the ship.When it is necessary to take the ship to the port to make it sea worthy.

That’s all……..

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