Q.10 EXPLAIN THE VARIOUS TYPES OF MARINE INSURANCE POLICY?
Ans TYPES OF MARINE INSURANCE POLICY
Following are the types of marine insurance policy,
1. VOYAGE POLICY
Under this policy, the subject matter is insured against risk in respect of a particular voyage only that is Journey between fired ports (say from Bombay to Liverpool or from London to New -York). The risk starts from the departure of ship from one port and ends at arrival of the ship at other port only the risk in transit is covered by this policy.
2. TIME POLICY
Under this policy, the subject matter of the policy is insured for a specified period of time not exceeding one year. It usually contains a continuation clause for exceeding of the policy for a period exceeding one year till the voyage is complete.
3. MIXED POLICY
It is a combination of voyage and time policies. Under this policy, the subject matter is insured for both specified voyage as well as period of time,
4. BLOCK POLICY
Gold diggers generally purchase this policy. It covers all the risks of damage to gold from the time of its recovery to arrival to its destination.
5. VALUED POLICY
It is the policy wherein the value of the goods insured is determined at the time of entering into the contract and specified therein; such value shall be conclusive, as between the insurer and the assured whether the loss be partial or total the absence of fraud. The value agreed at between the parties to be payable at the time of loss includes the invoice cost of goods, freight insurance and other charges and some margin to cover expected profits and other incidental expenses.
6. UNVALUED POLICY
It is also known as open policy under this policy the value of the subject matter is not specified in the policy but will have to be subsequently ascertained subject to the limit of the sum assured,
7. FLOATING POLICY
It is also known as declaration policy. This policy describes the contract of insurance in general terms and leaves the details to be defined by subsequent declaration. Thus a merchant who regularly ships the goods takes out a floating policy for a huge amount and as and when he makes shipment, he informs the insurers as regards the name of ship as also the nature and value of goods shipped and other particulars. The insurer records ail the shipments made by the merchant. When the whole amount of the policy is covered, the policy is could to be as ‘fully declared’ policy.
8. SHIP BUILDER’S RISK POLICY
Under this policy risk of damage to ship is covered from its construction to completion. This policy is issued for more than one year.
9. PORT RISK POLICY
This policy is purchased to cover all the risk of a ship when it is standing on a port for a particular period.
10. SPECIAL DANGER POLICY
This policy protects the insured against capture detention and war risks.
11. WAGERING POLICY
Such policy is issued when assured has no insurable interest in the subject matter insured such a policy contains words like policy proof of interest or interest or interest. It is the nature of a wager and is not recognized by the course of law. It is rarely issued.
In addition to the Particulars and information about the subject matters insured, the names of insurer and insured, the sun insured and the nature of risk insured for a particular type of policy, the following other clauses may be included in the policy by the mutual consent of the parties.
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