Types of marine insurance policy Content
Types of marine insurance policy
- Time policy:
This type of policy provides the insured to cover all type of marine risk for a specified period of time but not exceeding 12 months. Under this policy subject matter inured for a specified period of time such as from 12.00 pm of 1st April 2005 to 6:00 pm of 2nd June 2006 and so on. This type of insurance is generally taken for 1 year but it can be done for less than a year too. It is basically suitable for hull insurance rather than cargo insurance. It also may cover vessel during its sail in or in the time of construction
- Unvalued policy:
A marine insurance policy in which the value of property is fixed at the time of inspection is called valued policy. So in case of loss of property, the insurance company pays the full of policy amount paid at the time of taking policy whether the property is fully damaged or not
- Valuable marine insurance policy:
Under this policy, the value of claim is determined at the actual market price of the property only after the destruction of the policy. The value is not fixed earlier as in unvalued policy.
- Voyage marine insurance policy:
In this policy, the insurance company pays the compensation if the insured property is damaged in the ship while traveling from a certain place to another place. In this policy, the insurance company takes the responsibility when the ship leaves the port for a new voyage and is free from its responsibility when the ship arrives at its destination. In short, when a policy issued for particular voyage from one port to another port or from one place to another is called voyage policy.
- Mixed policy:
Under this policy, the feature of both marine insurance policy i.e. time and voyage policy are included. The insurance company is responsible for both traveling and also for certain duration. It is more useful while insuring the cargo
- Floating policy:
The entrepreneurs who have to supply the cargo regularly, their cargo might be insured at different period. At that condition to provide the facility to the clients floating marine insurance policy is very important. It is more appropriate for those who have to supply cargo on a regular basis. There is no tension to do marine insurance time to time when this policy is taken into consideration.
- With cargo freight policy:
It is a contract between the shipping company and the insurance company for the protection as well as freight from any unseen loss. Therefore it is called cargo freight policy. Under this policy, the insurance company indemnifies the loss of cargo as well as freight of the cargo to the shipping company
- Without cargo freight policy:
It is a contract between the shipping company and the insurance company only for the protection from any unseen loss. Therefore it is called without cargo freight policy. Under this policy, the insurance company indemnifies the loss of cargo but not the loss from freight of the cargo to the shipping company
- Single vessel policy:
It covers only one ship. Shipping company possessing many ships should take different policy from each type of ship. If company has 5 ships then 5 different policy is to be taken.
- Fleet policy:
It covers only number of ships owned by the shipping company. Shipping company possessing many ships should take same and single policy for all of ship. If company has 5 ships then one policy is sufficient
- Construction policy:
The ships under construction are insured under this policy. This policy undertakes the ship that is under construction in the yard and is not allowed for normal sailing in the sea except for trail sailing one or two time. If any loss occurs to the ship during its construction or trail the insurance company compensates the loss.