Know the Types of Marine Insurance

As you already know hundreds of ships travel to and from the Indian ports to different parts of the world carrying goods of extremely high worth. These goods are subjected to high risk as the behavior of the water bodies is highly unpredictable. Doesn’t this make insuring both- the people and the goods necessary? Therefore, marine insurance was introduced to ensure financial safety to the goods and men on board.

Let’s know a little more about marine insurance, its incorporation, and the types of marine insurance.

Marine insurance definition

In India, marine insurance is regulated by the Marine Insurance Act 1963. It is defined as the insurance that covers the loss or damage that might be caused to the ship, cargo, terminal, and the transport by which the goods are moved from the point of origin to the final destination.

It is a measure to secure the wealth of the shipping companies as well as the businessmen using the shipping services. It provides assurance and motivates them to undertake the risk involved in the transportation of goods through water bodies.

Despite taking all the necessary precautions and being fully equipped with the most advanced of the tools, nobody has control over natural happenings. Therefore, marine insurance is necessary.

Marine Insurance in India is available in various types. You must know the marine insurance features for each type to choose the best one suiting your needs. Let’s dive in.

Types of marine insurance:

Although all the insurances cover common losses like natural calamities, fire explosions, sinking, etc. There are differences between various kinds of marine insurances, want to know? Have a look:

1. Hull and machinery insurance

Both of these insurances are mostly issued together. Hull is the supporting body of the vessel, thus ensuring the hull helps shipowners in any mishap to the ship.

Machinery insurance covers the machinery of the ship. Both of these insurances cover any operational and mechanical losses that might occur to the ships.

2. Marine Cargo insurance

The voyage of the ship at the terminal is the most crucial part for the cargo owners. The shipments are subject to great risks of misplacement, damage, or other such losses. To prevent the losses of the cargo owners which may arise in such situations, marine cargo insurances are issued. It also consists of third-party liability insurance, that covers any losses that might be caused to the port because of your cargo. It also covers the goods throughout the voyage and while the goods are in transit.

3. Liability Insurance

The cargo is subject to a high risk of crashes, piracy attacks, and collisions. Along with the cargo, the life of the men working on the ship is also very high-risk. To avoid being responsible for any such losses, the shipowners opt for the right liability insurance suiting their needs.

In India, there are a plethora of companies that offer various types of marine insurance policies. The best way to purchase one for yourself is to compare, analyze the coverage and then decide.