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.
The process of issuing a marine insurance policy contains some specific and sequential activities known as steps or process of taking a marine insurance policy. The process is presented in the following diagram then followed by the discussion of those steps which should be undertaken before insurance of and policy.
Step 1: Finding an insurance company: This is the first step of taking a marine insurance policy, where the Company or the person, will make, an inquiry with the insurance company, or its agent. In Bangladesh, Non-life Insurance companies offer marine insurance policies. “Sadharon Bima Corporation” is government non-life insurance companies issuing marine insurance policies other than this there are around 48 private non-life insurance companies are also insuring policies.
Step 2: Collection and filling-up of proposal form: The person intending to take up a marine insurance policy will fill up a form available with the insurance company. The form should contain the following details:
- Name, address, and business of the proposed
- Name of the ship
- Full details of the cargo
- The subject matter of the insurance
- Amount or sum to be insured
- Type of voyage or the period of the policy.
Step 3: Insurance of cover-note: After receiving the proposal form and the required documents from the insured, insurance company run a reasonable investigation and if they are satisfied with the documents submitted then they ask the client to pay the required amount of the premium. After the payment of premium insurance company issued a cover note.
Step 4: Issuance of the policy: At the final stage marine insurance company prepare and issue the policy to the insured. It contains the following particulars:
- Name of the insured or his agent.
- The subject matter of the insurance.
- Marine risks insured against.
- Amount insured and the premium.
- Name, address and signature of the underwriter.
- Description and period of the voyage.
- Name of the ship and Name of the captain of the ship.