Question

Explain the three important insurance involved in Marine Insurance?

Answer 1

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. Three Things involved:

• 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.

• Cargo insurance: The cargo while being transported by ship is subject to many risks

• 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