Risk covered under marine insurance Content
Risk covered under marine insurance
- Perils of the sea:
Insurance company provides the financial security when the insured property is damaged due to reason of perils of the sea. The unexpected or sudden accidents such as storm, collision, robbery, ship sinking, bad weather, typhoon or cyclone etc are the perils of the sea.
Many kinds of energy are used in the operation of the ship. When it is used faultily there may be possibility of fire in form of which the cargo and the ship may be damaged. The insurance company pays the compensation when the insured property is damaged by fire.
Sometimes condition of war may arise inside the nation or two or more nations. At such a situation the enemy may capture the ship and the cargo. The insurance company pays the compensation when the insured party claims or the destruction of the property by the action of enemy.
- Pirates and thieves:
When sea pirates and thieves destroy cargo and ship, insurance company pays the compensation. Sometime pirate create a big problem in sea traveling. The insured party thus has to receive the compensation if the insured property is damaged due to the reason of pirates.
If it is considered that the part of the ship should be disposed off in the ship due to its heavy weight and unbalance then to save the ship some parts are thrown off. This disposing function is called jettison. The loss from jettison also is compensated by the insurance company.
Sometimes strikes may be conducted by the employees. The damage and loss due to the reason of strikes should be compensated by the insurance company.
It is a kind of mischievous and willful action performed by the navigator, captain, crews and employees of the ship to cause loss and damage to the ship and the cargo of the shipping company and the parties respectively. Here mischievous act may be of any nature, such as theft of ship or cargo, setting ship cargo on fire, fraudulent sale of cargo and so on. These are addition risk. The insurance company can compensate the losses arising from his type of risks too.