Question

Explain the procedure for taking a marine insurance policy.

Answer 1

In order to obtain a marine insurance policy, a person has to fill in a prescribed form known as the Marine Declaration Form, available with an insurance company. The policy can be taken directly or through an insurance agent. The proposal form should contain the following information:

1. Name, address and business of the proposer.
2. Name of the ship.
3. Full details of the cargo.
4. Subject matter of insurance.
5. Amount or sum to be insured.
6. The voyage or the period of the policy.

On receipt of the form, the insurance company will assess the risk involved and determine the premium. The proposer pays the premium, and the insurance company issues the policy. The insurance policy contains the name of the insurer, name and address of the insured, subject matter insured, voyage or time period covered, sum insured, etc.