Marine insurance
- 2. MARINE INSURANCE The business of effecting contracts of insurance upon the vessels any description including cargo, freights and other interests which may be legally insured.
- 3. Subject-Matter of Marine Insurance • Cargo Insurance • Goods being carried by marine ships are known as Cargo. These goods are insured against risk of voyage. Risks arising out of voyage include war, fire, theft, forfeiture of goods by enemy etc. • .
- 4. • Hull Insurance • Ship is also insured like the goods against the risk rising out of marine voyage. This is known as insurance of ship or hull insurance.
- 5. • Freight Insurance • The shipping company charges some freight for carrying the cargo. Hence, the shipping company has an interest in freight. • Liability Insurance • The insurance which being payable for the damage is known as is taken for damage to the third party and compensation liability insurance.
- 6. PRINCIPLES OF MARINE INSURANCE • Principle of Insurable Interest • Like other insurance contracts, in marine insurance also, the insured must have the insurable interest in the property insured. Following have the insurable interest in marine insurance (A) Owner of ship in his ship
- 7. • (B) Passengers in their goods • (C) Employees and captain of ship in their salaries • (D) Owner of goods in his goods. • (E) Moneylender who has provided money on security of goods in these goods. • (F) Person who charges freight in that freight.
- 8. • Principle of Implied Warranties • There are certain facts related with contract, which need not to be explained clearly and specifically. Even in the absence of such clarity and specification, their existence is accepted. • Worthiness of Ship • Worthiness of ship means that ship should not have any type of problem which can create the possibility of damage to the insured’s property on the ship.
- 9. • Non-Deviation of Ship • Ship route is pre-fixed. The insurance company can easily assume that ship will follow no other route. • Legality of Venture • The insurance company is bound to pay the compensation only when the objective of voyage is legal.
- 11. DIFFERENCE BETWEEN LIFE INSURANCE AND GENERAL INSURANCE Basis of Difference Life Insurance General Insurance 1. Type of Contract This is not a contract of indemnity. After a certain time., payment of sum assured is made. This is a contract of indemnity. Compensation is paid only when there is some damage. 2. Objective The objective of this insurance is to control financial problems of self and family. This insurance is taken for the safety of property. 3. Limit of amount There is no limit of amount for taking insurance policy. Insurance can be taken upto the maximum value of the property. 4. Principle of Subrogation This principle does not apply here. This principle applies here. 5. Period This policy can e taken for an number of years. The maximum period for this policy is one year. 6. Safety and Investment This involves both the elements. It involves only safety. 7. Insurable Interest Insurable interest is required at the time of taking the insurance policy. In fire insurance, insurable interest is required both at the time of taking policy as well as the time of loss. But in marine insurance it is required at the time of loss. 8. Moral Risk This risk is minimum here because no person would like to kill himself. This risk is higher as many people can damage property themselves and ask for compensation. 9. Surrender Value It has surrender value. On cancellation of the policy some money is refunded. No such provision of a surrender value exists here.