Marine Insurance – Safety First! 🌊
The Sea is Dangerous.
- Storms ⛈️
- Pirates 🏴☠️
- Fire 🔥
- Collision 💥
If your ship sinks, who pays for the ₹10 Crore cargo? The Insurance Company.
Definition: A contract where the Insurer agrees to indemnify (compensate) the Insured against marine losses.
Types of Marine Policies 📜
- Voyage Policy: Covers a specific trip (e.g., Mumbai to London). Ends when ship arrives.
- Time Policy: Covers a specific period (e.g., 1 Year). Good for ships that travel constantly.
- Mixed Policy: Voyage + Time.
- Floating Policy:
- For regular exporters.
- You buy a policy for ₹10 Crores lump sum.
- Every time you ship, the amount is deducted. No need to buy a new policy every week!
Key Clauses (What is covered?) 🛡️
- Perils of the Sea: Sinking, Stranding, Collision.
- Fire: Accidental fire.
- Jettison: Throwing goods overboard to save the ship (e.g., ship is too heavy in a storm).
- Barratry: Crew stealing the ship/goods.
Insurable Interest
You must have "Insurable Interest" at the time of loss. Meaning: You must actually own the goods when they sink. If you already sold them, you don't get the money!
Quiz Time! 🎯
Test Your Knowledge
Question 1 of 5
1. Marine Insurance covers risks related to:
💡 Final Wisdom: "Hope for the best, but insure for the worst. A small premium saves you from bankruptcy." ☂️
Next up: Bills of Exchange - How to get paid! 💸