Marine Insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination. This insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which the property is transferred, acquired, or held between the points of origin and the final destination.
Insurance against loss by damage or destruction of cargo, freight, merchandise, or the means or instruments of transportation and communication whether on land sea or air is called marine insurance. To ensure all the risk can be managed without the lack of monetary funds when needed the most, different Maritime insurances are made compulsory for ships and ship owners to take. This insurance is very significant because, through this insurance, ship owners and transporters can be confident of claiming indemnity particularly considering the mode of transportation used.
The different types of marine insurance are as follows:
- Hull Insurance: Hull insurance mainly caters to the torso and hull of the vessel along with all the articles and pieces of furniture on the ship.
- Machinery Insurance: All the essential machinery are covered under this insurance and in case of any operational damages, claims can be compensated.
- Protection: Risks which are connected with ownership of the vessel. E.g. Crew related claims.
- Indemnity: Risks which are related to the hiring of the ship. E.g. Cargo-related claims.
- Freight Insurance: This type of marine insurance solves the problem of companies losing money because of a few unprecedented events and accidents occurring.
- Marine Cargo Insurance: Cargo insurance caters specifically to the marine cargo carried by ship and also pertains to the belongings of a ship’s voyages.