Explain marine insurance policies?
It gives protection against the losses caused due to the dangers of the sea. It is a form of an insurance contract covering loss or damage to vessels or to cargo or passengers during marine transportation.
Types of marine insurance Policies:
- Voyage Policy:
It is a policy in which the subject matter is insured for a specific voyage irrespective of time involved in it. In this case, risk begins only when the ship starts on a voyage.
- Time Policy:
In this policy, the subject matter is insured for a definite period of time. A time policy cannot be for a period exceeding one year, but it may contain a continuation clause. The continuation clause means that if the voyage is not completed within the specified time, the risk shall be covered until the voyage is completed.
- Mixed Policy:
This policy is a combination of voyage and time policy. It, therefore, cover the risk of both, a particular voyage and for a specified period of time.
- Valued Policy:
Under this policy, goods are insured for an agreed value between the insurer and insured at the time of taking the policy. This facilitates easy settlements of claims in case of such items where it is difficult to assess the real market value.
- Blanket Policy:
This policy is taken for a maximum limit of the required amount of protection and the full amount of premium is paid at the beginning of the policy. This policy describes the nature of goods insured, specific route, ports, and places of the voyage. It covers multiple risks on one property or it covers many properties under the policy.
- Port Risk Policy:
Port risk policy covers all types of risks of a vessel while it is anchored at the port for a particular period of time. This policy is applicable to the departure of the vessel from the port.
- Composite Policy:
This type of policy is purchased from more than one insurer. The liability of each insurer is separate and distinct. This policy is taken when the amount of insurance is very high.
- Single Vessel Policy:
This policy is suitable for small shipowners having only one ship or having one ship in different fleets. It covers the risk of one vessel of the insured.
- Fleet Policy and Block Policy:
In fleet policy, several ships belonging to one owner are insured under the same policy. In block Policy, the cargo owner is protected against damage or loss of cargo in all modes of transport through which his/her cargo is carried i.e. covering all the risks of rail, road, and sea transport, etc.