Answer
marine insurance : - property insurance and liability insurance.
The important covers are:
- Hull & Machinery (H&M): covers physical loss/damage to the ship, machinery and equipment arising from insured marine perils such as collision, grounding, fire, heavy weather and machinery damage subject to policy terms.
- P&I Insurance: liability cover provided through Protection & Indemnity Clubs. It typically covers third-party liabilities such as crew injury/death, pollution, cargo liabilities, wreck removal, collision liabilities not covered by H&M, fines in specified circumstances and certain legal expenses.
- Cargo Insurance: protects cargo owners against loss or damage to goods during transit.
- Freight Insurance: protects the financial interest in freight where freight may be lost because the voyage/cargo is lost.
- War Risk Insurance: covers risks generally excluded from ordinary H&M policies, such as war, hostile acts, capture/seizure and related perils according to policy wording.
- Loss of Hire: compensates the owner for loss of income when the vessel cannot trade because of an insured casualty.
- Builders' Risk: covers a ship during construction, launching, trials and delivery.
- Kidnap & Ransom / specialist covers: may be purchased for particular trading risks.
Marine insurance policies may also be classified as:
- Voyage Policy – covers one specified voyage, e.g. Mumbai to Singapore.
- Time Policy – covers for a specified period, commonly 12 months for ships.
- Mixed Policy – combination of time and voyage.
- Valued Policy – agreed insured value is stated in the policy.
- Unvalued/Open Policy – value is not fixed in the policy and is established as required.
- Floating/Open Cover – commonly used where repeated shipments are expected and individual declarations are made.
- Fleet Policy – several vessels of the same owner insured under one arrangement.