If the ship is damaged, the owner of the ship gets indemnity from the insurance company.
Valued Policy In this type of policy, the value of the cargo and consignment is ascertained and mentioned in the policy document beforehand. Wager or Honour Policy: Several shipments are covered under a single policy.
This policy contains the name of the ship by which the shipment is made and the policy covers risk of that particular ship. A ship may be insured during a particular voyage for a period, e. The different types of marine insurance policies are detailed below:.
This policy is based on mutual understanding, so, it is called honored policies. In this policy, the elements of voyage policy and of time policy are combined. But as much as complex the field is, it is nonetheless interesting and intriguing because it caters to a lot of people and offers a wide range of services and policies to facilitate easy and uncomplicated business transactions.
Liability insurance is that type of marine insurance where compensation is bought to provide any liability occurring on account of a ship crashing or colliding. This type of marine insurance solves the problem of companies losing money because of a few unprecedented events and accidents occurring. Useful information! This type of policy cannot be issued for immovable property.
This policy covers the risk of one vessel of the insured. This policy is commonly more used for hull insurance than for the cargo insurance. A policy may be undertaken by more than one underwriter.
The liability of the insurer continues during landing and re-shipping of the goods. This policy is commonly more used for hull insurance than for the cargo insurance. It will be ascertained at the time of actual loss.
Sum assured under the Annual Policy shall stand; reinstated as from the time of the happening of an event giving rise to a valid claim and the assured shall remain responsible for a pro-rata additional premium for the remaining period of the policy on the amount reinstated continuing from the date of the loss.
Also covered is a risk of damage to various articles and furniture in the ship.
Maximum protection amount is paid at the time of buying the policy.