Question

Describe the kinds of marine insurance.

Answer 1

1. Hull insurance: This type of marine insurance covers the risk of damage to the ship due to sea perils.
2. Cargo insurance: Cargo means the goods being transported through ships. When cargo is insured against sea perils, it is called cargo insurance.
3. Freight insurance: When freight is payable at the port of destination, the shipping company may not get the freight if the goods are lost during transit. Therefore, the shipping company may insure the freight to be received. This is called freight insurance. When the freight is prepaid, it is a part of the cargo insurance, and no separate policy is taken.
4. Shipowner's liability: This insurance covers the liability of the shipowner for injury or death caused to the employees or passengers of the ship.