Different kinds of
marine insurance policies have been
introduced to cover a large number of risks including sinking and burning of
ship, stranding or going astray of the ship, accident, collision of ships,
jettison, piracy, explosion, sea decoities, stormy winds causing losses to the
ship and cargo and many other perils of the sea. These policies contain detailed information about the
subject matter insured risks covered
description of voyage, terms of
insurance, premium etc. The following are the major policies issued under
marine insurance:
(1) TIME POLICY: When
a policy is taken a definite period of
time, it is called time policy for
example a policy insuring the ship from
1.1.04 to 31.12.04. This policy may pursue any course it likes the policy would
cover all the risks from the perils of
the sea for a stated period of time. Generally this policy cannot be issued for
a period exceeding 12 months . However this policy may contain a
“continuation clause” providing
that if at the end of the period the ship is yet at sea, the policy will
continue for a reasonable time there after till the ship arrives safely at the
port of destination. It is to be noted that if the risk attaches under the continuation clause a fresh policy duly stamped covering the
period in question must be a taken before the insured can claim any loss under the policy. This
policy is commonly used for hull
insurance though it may be taken out also for movables and other goods when
small quanties are involved.
(2) VOYAGE POLICY: When the marine risk during
a particular voyage only a covered under
a policy it is called voyage policy. For example a policy insuring cargo for a
voyage from Chennai to London. This policy is more suitable cargo insurances as cargoes
are in danger of destruction from maritime perils during the period of
the transportation. Since this policy
covers the risk in transit, it is not suitable for hull Ship insurance
as the ships generally do not operate over a
particular route only. (3) MIXED POLICY: A policy which combine the features of voyage policy and time policy
is known as a Mixed policy. For example a policy insuring a subject matter from a Mumbai to Karachi
from the 1.4.04 to 31.3.05. These policies are the governed by the
combined application of the rules
relating to both time and voyage policies. These policies are also known as “ Time and voyage policies and are
issued for ship and steamers operating over particular routes or sailing
between certain fixed ports.
(4) VALUED
POLICY: When the value of the subject
matter is a declared at the very outset
in the policy itself at the time of a
taking insurance, it is called valued policy. Such declared insured
value consists of (a) cost of goods: (b) Freight and shipping charges
etc., and ( C ) a margin of anticipated profits. In the absence of fraud or misrepresentation the valued policy is the measure of
indemnity. In case of total loss of the goods, the insurer is required to pay
the declared amount to the insured. However in case of partial losses, the
liability of the insurer is determined
on the basic of the assessment made by the officials. It should be
noted that the insured value is not
necessarily the actual value for the of the cargoes, which may be even less
than the invoice price of the goods. For example the actual value of the goods
insured may be Rs. 25,000, while the policy may be taken only for Rs. 15, 000.
In this case, the insured value is a 15,000 which will be taken will be
inserted in the policy itself and will be taken as the basis of indemnity in case of loss or damage.
(5) UNVALUED POLICY: When the value of the subject matter is not expressly
declared at the time of taking insurance and is left to be a decided at the
time of loss, it is called Unvalued policy and the value to be decided later is
known as “Insurable value” which consists
of the market value of the goods at the time of a loss and freight and
shipping charges only and not of margin for anticipated profits. The Unvalued
policies are not popular or common in the marine insurances because of
difficulties faced in evaluation of loss
at the time of damage.
(6) FLOATING POLICY: A Floating policy is one of which
is taken for a sufficient round sum to cover several shipments: the name of the
ship and other particulars about shipments
made under it being declared as
and when they are made till the total sum insured or opened is exhausted. This policy is also known as ‘Declaration policy or Open policy”.
This policy has made the present day voluminous commercial transactions
possible and is particularity convenient
for merchants who are interested in a
series of regular shipments of goods between certain ports or within defined geographical areas. All this shipments of cargo-owners are
automatically insured against marine perils
immediately after their shipment whether known to be the insured or not.
However it is necessary that the declarations
has been top declared to is should be duly made after each shipments
with in a reasonable time. The premium should be is calculated
according to the amount of risks as a determined from the declarations made. It
is not open to the insured to omit to send it in the declarations for shipments
which have safely arrived. If he fails to do so. It amount to a breach of trust
and renders the policy void.
