Types Of Marine Insurance And Policies

by Bobby Neece

An insurance is used to manage risks and financial losses and when it comes to marine insurance various factors come into account i.e. loss of expensive and costly goods, risk of high pollution to the environment due to oil spill over, and risk of losing lives of seamen and other individuals. Marine insurance was the earliest insurance and it was introduced during the era of Roman and Greek empire. Marine insurance covers all the damages and losses to ships, terminal, and transport by which goods or property is transferred between the starting point and final destination. Marine insurance is used to mitigate heavy financial losses during long marine journeys. There are different types of marine insurance including Hull insurance, machinery insurance, protection and indemnity insurance, and liability insurance, freight insurance, and marine & cargo insurance and there are different polices that govern the insurance including voyage insurance, mixed insurance, time policy, wager policy, and open policy.

Few of above mentioned types are discussed below:

Hull insurance:

Hull insurance is concerned with torso and hull of the vessel and different other wooden goods present on the ship. This insurance is mostly held by the owner of ship to compensate financial losses during any kind of accident.

Machinery insurance:

All the machinery used for an operation of the ship comes under machinery insurance. In case of dysfunction of machinery or any damage to the machinery this type of insurance can be claimed.

Marine and cargo insurance:

Marine and cargo is the oldest type of insurance in history.  Many potential issues have been solved to greater extent and public liability insurance in Australia provides proven cover. Most of the times when insurance applies pretty straightforward but due to the involvement of international conventions it becomes suspect.

Freight insurance:

Freight insurance claims the protection of freight during the voyage. Freight insurance can be purchased directly from transporter or from a third-part insurer.

In addition to different types of marine insurance there are different types of policies which are briefed to client while choosing right marine insurance for his transport keeping in mind the different prospects.

Voyage policy:

Voyage policy is a marine insurance policy and it mostly covers undetermined risks on a particular voyage. It is not time-based policy like other policies. Visit https://www.midas.net.au/marine-cargo-insurance for marine cargo insurance.

Time policy:

Insurance policy that covers risks emerges during the specific time is called time policy.

Mixed policy:

 An insurance policy which offers its clients benefits of both voyage and time policy is called mixed policy.

Wager policy:

In this type of policy, there are no fixed rules for reimbursements. If the insurance company finds the damages worth claimed then the company will provide reimbursement. It should be noted that there is no legal proof of this policy.