MARINE INSURANCE

Z. A. Patel

OVERVIEW
INTRODUCTION TO GENERAL INSURANCE

HISTORY OF MARINE INSURANCE

WHAT IS MARINE INSURANCE? TYPES OF MARINE INSURANCE

OCEAN MARINE IN SURANCE AND ITS TYPES

INLAND MARINE INSURANCE AND ITS TYPES\ MARINE INSURANCE POLICIES,ITS SALIENT

FEATURES AND TYPES

INTRODUCTION TO GENERAL INSURANCE

General Insurance sector in India dates back to 1850,

when Tritron Insurance company, for general insurance was incorporated in 1907, the Indian Mercantile Insurance Co. Ltd was set up. Insurance Act was passed in 1928 but subsequently reviewed in 1938 In 1968, the Insurance Act, 1938 was amended.

CONTD.
Prior to 1973, general insurance was urban-centric

107 insurers including branches of foreign companies

operating the country were amalgamated. GIC was incorporated as a company in 1972 GoI subscribed to the capital of GIC. GIC, in turn, subscribed to the following four companies :i) National Insurance Co. Ltd ii) New India Assurance Co. Ltd iii) Oriental Fire and general Insurance Co. Ltd iv) United India Insurance Co. Ltd

CONTD.
New players have also ventured into general insurance

business. They are :i) Tata AIG General Insurance Co. Ltd ii) Bajaj Allianz General Insurance Co. Ltd iii) Reliance General insurance Co. Ltd iv) Royal Sundraram General Insurance Co. Ltd v) IFFCO TOKIO General Insurance Co. Ltd vi) ICICI Lombard General insurance Co. Ltd

HISTORY OF MARINE INSURANCE

Ocean marine insurance is one of the earliest forms of

insurance Coincident with the development of trade in the Mediterranean Sea 2000 years before the birth of Christ, insurance transactions emerged as distinct commercial agreements Bottomary was a transaction protecting an owner from financial loss if his ship was destroyed Today, marine insurance is essential to international commerce

WHAT IS MARINE INSURANCE ???

A contract of marine insurance is an agreement

whereby the insurer undertakes to indemnify the assured in a manner and to the extent thereby agreed, against marine losses i.e., the losses incidental to marine adventure.

TYPES OF MARINE INSURANCE

Ocean marine insurance Inland marine insurance

MARINE INSURANCE POLICIES

Marine insurance policies cover risks associated with

shipments of goods like :1) Transit of heavy goods such as rail engines by shipping vessels 2) Consignment of diamonds sent by post 3) Movement of household goods by rail/road/air

SALIENT FEATURES OF MARINE INSURANCE POLICIES

The striking features of marine insurance policies is

that they are issued on agreed value basis The values agreed may include all expenses incurred or to be incurred The contracts can be supply of goods on : i) ex-factory/go-down/warehouse basis ii) F.O.B basis iii) C & F

TYPES OF POLICIES
There are different types of marine policies known by

different names according to the manner of their execution or the risk cover :i) Voyage policy definite voyage ii) Annual policy per year iii) Value Policy value agreed upon iv) Unvalued policy v) Open cover 12 months, all shipment to one or more destination. But max limit is fixed on value of consignment. vi) Specific cover different risks for single shipment vii) Fleet policy for fleet of ships belonging to same Co.