Can You Define Marine Insurance?

Marine insurance: Marine insurance is the oldest known type of insurance. It is a contract of indemnity in which the underwriter agrees to compensate the measured against specified perils in consideration of certain premium. Some writers define the marine: "it is a contract of indemnity where – by the assuror undertakes to indemnify the insured in a manner and to extent there by agreed against the loss caused in connection with the marine adventure". "It is primarily concerned with the loss imposed by some maritime perils. Temple man has defined this type of insurance. "A contract of indemnity whereby the insurer undertakes to indemnify the insured against perils insured."

A marine insurance policy is generally taken in order to obtain protection against the risks included in the clause. The growth of the international trade has been greatly helped by shifting of risks to insurance company. A ship selling in the sea faces some misfortune. Marine insurance is a device to reduce or to eliminate the se perils. So industrialist and exporters may devote there full attention towards the promotion of business which may increase the export activities.

There are three insurance of property in marine insurance i.e. (1) Hull insurance (2) Cargo insurance (3) Freight insurance. All marine insurances use a policy document embodying the terms of the contract between the parties concerned.