LAW OF INSURANCE (5BALA23)

SEMINAR
TOPIC:
TYPES OF MARINE INSURANCE POLICY
 INTRODUCTION

Marine insurance is a specialized form of insurance that provides coverage for risks associated with marine activities,
including the transportation of goods, vessels, and other maritime operations. It plays a crucial role in facilitating global
trade by offering financial protection against potential losses or damages that may occur during the transportation of goods
via sea, air, or land. Marine insurance policies are designed to address the unique risks faced by vessel owners, cargo
owners, freight forwarders, and other parties involved in marine operations. These policies provide coverage for a wide
range of perils, including natural disasters, accidents, theft, piracy, and various liabilities that may arise from the operation
of vessels. One of the primary objectives of marine insurance is to protect the financial interests of businesses and
individuals involved in international trade. The policyholders, such as ship-owners, cargo owners, and logistics companies,
transfer the risk of potential losses to the insurance company in exchange for a premium. In the event of a covered loss, the
insurance company bears the financial burden, ensuring that the insured parties can recover their losses and continue their
operations. Marine insurance policies are typically tailored to meet the specific needs of different stakeholders in the
marine industry. They encompass a range of coverage types, including hull insurance, cargo insurance, protection and
indemnity (P&I) insurance, builders' risk insurance, and others. Each type of policy offers protection against different risks
and provides specific coverage for the insured party's interests.
The marine insurance industry operates within a framework of international laws, conventions, and regulations that
govern the rights and responsibilities of the parties involved. These regulations help ensure fair and standardized practices
in marine insurance, promoting transparency and trust among insurers, insured parties, and other stakeholders
THEME OF THE SEMINAR

1. MARINE INSURANCE POLICY BASED ON THE COVERAGE AREA

2. MARINE INSURANCE POLICY BASED ON THE STRUCTURE OF CONTRACT
3. WHO ARE ELIGIBLE FOR THIS INSURANCE ?
4. CASE LAWS
 MARINE INSURANCE POLICY BASED ON THE COVERAGE AREA:

 Hull Insurance: This policy provides coverage for physical damage or loss to the vessel itself. It typically covers risks
such as sinking, collision, fire, theft, and damage caused by natural disasters.
 Cargo Insurance: Cargo insurance covers goods and merchandise being transported by sea, air, or land. It protects
against loss or damage to the cargo during transit, including risks such as theft, fire, sinking, and general average.
 Freight Insurance: Freight insurance, also known as freight forwarder's liability insurance, provides coverage for
freight forwarders and logistics companies. It protects against liability for damage or loss of cargo while it is under the
care, custody, or control of the insured party.
 Demurrage Insurance: Demurrage insurance covers additional expenses incurred by a vessel owner or operator when
a vessel is delayed at a port beyond the agreed-upon time. It compensates for the loss of use of the vessel and any resulting
financial losses.
 Protection and Indemnity (P&I) Insurance: P&I insurance is liability coverage for vessel owners and operators. It
provides protection against claims for bodily injury, property damage, pollution liability, collision liability, and other
third-party liabilities arising from the operation of the vessel.
 Builders' Risk Insurance: Builders' risk insurance covers vessels under construction or undergoing repairs. It protects
against damage or loss during the construction or repair process, including risks such as fire, theft, and natural disasters.
 War Risk Insurance: War risk insurance covers damages or losses caused by war, acts of terrorism, piracy, civil unrest,
or other hostile activities. It provides additional coverage when standard marine policies exclude such risks.
 MARINE INSURANCE POLICY BASED ON STRUCTURE OF CONTRACT

 Open Policy: An open policy, also known as a floating insurance, offers protection for an unlimited number of transport trips while the
policy is in effect. High-volume trading businesses in particular benefit from this because it eliminates the need for them to get
insurance for each transportation trip.
 Voyage Policy: The way a journey coverage operates is similar to how maritime cargo insurance does. This coverage commits the
insurance provider to pay for any losses or harm done to the cargo during a certain voyage. Regardless of how long it takes for the vessel
to get there, it ends when it does.
 Time Policy: A time policy, as the name suggests, is issued for a fixed period of time. The vessel may make any number of voyages
during this period. Generally, the insurance company issues this policy for one year, however, the period may vary depending on the
agreement between both parties.
 Mixed Policy: A combined or blended time and voyage policy is referred to as a mixed policy. When granting this policy, the insurance
provider agrees to pay for any loss or damage to the ship during a specific voyage up until a specific amount of time.
 Single vessel policy : A single vessel policy insures only a single ship of the insured.
 Port Risk policy: Ships that are either docked or undergoing repairs at the port are covered by a port-risk policy. In the absence of a
different arrangement between the parties, it is an all-risk policy that covers all hazards.
 Named Policy: A named policy is one in which the contract of insurance specifically mentions one or more ship names.
 Wager Policy: A wager policy protects from loss of the property of which the insured does not have legal proof of possession. This
means, when the insured is not able to prove an insurable interest in the property, the insurance company may issue a wager policy to
him.
 WHO ARE ELIGIBLE FOR THIS INSURANCE POLICY ?

 Vessel Owners: Individuals or companies who own vessels, such as ships, boats, or yachts, eligible for various
marine insurance policies. This includes policies such as hull insurance, protection and indemnity (P&I) insurance,
and builders' risk insurance.
 Cargo Owners: Individuals or businesses that have a financial interest in transporting goods or merchandise by sea,
air, or land eligible for cargo insurance. This includes importers, exporters, manufacturers, distributors, and freight
forwarders.
 Freight Forwarders and Logistics Companies: Freight forwarders and logistics companies that handle the
transportation of goods, both domestically and internationally, eligible for insurance coverage such as freight
insurance, liability insurance, and errors and omissions insurance.
 Charterers: Individuals or entities that charter or lease vessels for a specific period eligible for insurance coverage.
Charterers' liability insurance is a type of policy that provides coverage for the legal liabilities of charterers arising
from the operation of the chartered vessel.
 Shipbuilders and Repairers: Shipbuilders, ship repair yards, and marine construction companies eligible for
builders' risk insurance and other policies that cover the vessels under construction or undergoing repairs.
CASE LAWS:

 "The "Prestige" Case" (2008): This case involved an oil tanker that sank off the coast of Spain, resulting in significant
environmental damage. It examined liability issues, insurance coverage, and the obligations of the insurer and insured.
 "The "Atlantic Star"" (1973): This case dealt with the concept of constructive total loss, which occurs when the cost of
repairing or recovering a vessel exceeds its insured value. The court clarified the conditions under which a vessel could be
considered constructively lost.
 "The "Mareva"" (1980): This case introduced the Mareva injunction, a legal remedy that allows for the freezing of assets to
prevent a defendant from dissipating funds and avoiding payment of insurance claims or judgments.
 CONCLUSION:

In conclusion, marine insurance is an essential component of the maritime industry, offering crucial protection against the risks
and uncertainties inherent in sea-based operations. It serves as a financial safety net for vessel owners, cargo owners, freight
forwarders, and other stakeholders involved in international trade. By transferring the risk of potential losses to insurance
companies, marine insurance policies provide peace of mind and security to businesses and individuals engaged in marine
activities. In the event of accidents, natural disasters, theft, or other covered perils, the insurance coverage helps to mitigate
financial losses, ensuring that the insured parties can recover and continue their operations. Moreover, marine insurance
contributes to the stability and growth of global commerce by facilitating the movement of goods across borders. It enables
businesses to confidently engage in international trade, knowing that their shipments are protected against unforeseen
circumstances that may arise during transit. The marine insurance industry operates under a framework of international laws and
regulations, which promote fair and transparent practices, ensuring that all parties involved are treated fairly and equitably. This
regulatory environment fosters trust and confidence among insurers, insured parties, and other stakeholders in the marine
industry.

by, AINSTIN.R(18DBALB002)