Marine Insurance is a contract whereby the insurer or underwriter undertakes to indemnify the assured in the manner and to the extent thereby agreed, against marine losses, that is to say, losses incidental to marine adventure.’ The instrument in which the contract of marine insurance is recorded is called a policy. The insurer in marine insurance is known as the underwriter and the person who is thereby indemnified is called the insured.
Different kinds of Marine / Transit Policies
A policy of insurance may be of the following types:
- Time Policy which covers the risk up to a stated amount for a fixed time
- A Valued Policy, i.e. a policy which specifies the agreed valued of the subject matter insured
- Mixed Policy which covers voyages between specified places within a specified time.
- Floating Policy which describes the insurance in general terms and leaves the name of the ship or ships or other particulars to be defined by subsequent disclosures
- Open policy/declaration policy where the sum insured is based on previous year’s/estimated turnover and values of transits made made during the policy period are periodically declared to the Insurer.
- Voyage Policy which covers a particular voyage.