Marine insurance is a type of insurance coverage specifically designed to protect against financial losses related to maritime risks. It provides coverage for ships, cargo, and other marine-related properties and liabilities. Marine insurance plays a crucial role in facilitating international trade and protecting the interests of shipowners, cargo owners, and other parties involved in maritime activities.
Risks Covered: Marine insurance typically covers risks associated with sea voyages and maritime activities, such as collisions, sinking, grounding, piracy, fire, and theft.
Voyage and Time Policies: Voyage policies provide coverage for a specific voyage or transit, while time policies offer continuous coverage for a specified period, such as one year.
Importance in International Trade: Marine insurance is vital for international trade as it provides financial protection to cargo owners, traders, and exporters against potential losses during the transportation of goods across oceans and seas.
General Average: In the event of a maritime emergency, such as grounding or a major storm, a general average may be declared. In such cases, all parties involved in the voyage proportionally share the losses. Marine insurance can cover the policyholder’s share of general average contributions.
Institute Cargo Clauses: The Institute Cargo Clauses (ICC) are standardized clauses used in marine cargo insurance policies. They define the extent of coverage and specify exclusions and conditions of the insurance.
Marine Liability Insurance: Apart from cargo and hull insurance, marine liability insurance offers protection against various liabilities, including collision liability, pollution liability, and wreck removal liability.
Salvage and Towage: Marine insurance may cover the cost of salvage operations and towage of a distressed vessel to a safe port after an accident or emergency.
Marine insurance typically covers risks such as collisions, sinking, grounding, piracy, fire, theft, and other perils associated with sea voyages.
Marine insurance is essential for various parties involved in maritime activities, including shipowners, cargo owners, freight forwarders, traders, exporters, importers, and other stakeholders engaged in international trade and shipping.
Voyage policies provide coverage for a specific sea voyage or transit, while time policies offer continuous coverage for a specified period, such as one year.
General Average is a principle of maritime law where all parties involved in a sea voyage proportionally share the losses incurred during a maritime emergency, such as grounding or a major storm. Marine insurance can cover the policyholder's share of general average contributions.
No, marine insurance typically covers risks not only on the high seas but also in other navigable waters, such as rivers, lakes, and harbors.
Yes, marine insurance may cover the cost of salvage operations and towage of a distressed vessel to a safe port after an accident or emergency.
