Question

Define Marine Insurance.

Answer 1

Marine insurance is one of the oldest types of insurance. It plays a vital role in foreign trade by providing protection against the perils of the sea. Sea perils include piracy, collision, capture by the enemy, seizure, restraint, jettison, barrage, etc. Jettison means throwing goods overboard in order to avoid sinking a ship, while barratry refers to a fraudulent breach of duty by a master or staff of the ship. Sinking the ship after being hit by a rock and loss of cargo due to seawater or heat are other examples of sea perils. Thus, marine insurance may be defined as a contract whereby the insurer agrees to indemnify the insured in a manner and to the extent agreed upon against marine losses.