Marine insurance is not an easy type of insurance just like other insurance you can easily buy on the market. Although it has been around for many years now. Notwithstanding this, it has also developed with the expansion of trade.

This type of insurance is basically concerned with oversea trade. this trade involves the transformation from one country to another by ships. it's also the procedure for transshipment of goods from one place to another which has its own risks.

this is why it becomes necessary to get those goods secured moreover the insurance is as vital as it gives protection against any form of damages or losses that may be incurred to the ship or the cargo.

Marine insurance policies also take coverages for you if own a yacht and ship for any transportation purpose, and everything related to marine risk.

What is Marine Insurance?

Marine insurance is one of the major types of insurance policy that provides coverage for damages and losses caused to cargo vessels, and ships, whereby goods have been dispatched from the country of origin to their final destination. including transportation of other means where goods are transferred, from one point of origin and the final bus stop.

This coverage covers a lot of marine losses such as strikes, war, burning, weather conditions, collision, navigation, sinking improper arrangement by the carrier, natural perils, and some other marine risks like- political risk, terrorism, and piracy including cyber risk.

Characteristics of Marine Insurance

however, as the case may be when shipping goods from one place to another a marine insurance policy covers many insured goods against any form of risk and material damages. below are the advantages of getting a marine insurance policy.

here we are going to be discussing the characteristics of marine insurance and the role it plays in covering you on your losses and against heavy damages.

1. Marine Insurance can be Assigned: this marine insurance policy is assigned unless it contains terms expressly prohibiting assignment. it may be assigned either before or after losses

2. The payment of premium: this is a situation where the owner must make sure he meets up with the annual payment well in advance so that the risk can be covered.

3. Comprehensive coverage:  marine cargo insurance policy gives comprehensive coverage against all marine-related perils that the goods are exposed to while they are in transit.

4. Flexibility: There is much variety of options available for the requirement of the insured that is very flexible enough to consider their budget.

5. Extensions of Coverage: under this plan, the policyholder has the liberty to enhance the coverage by add-on the pros and covering the risk arising due to strikes, riots, etc.

Types of Marine Insurance policies

Here are the types of marine insurance policies:

  • voyage Policy.
  • Floating Policy.
  • Port Risk Policy
  • Mixed Policy.
  • Named Policy.
  • Time policy.
  • Single vessel policy.
  • Blanket Policy.

These are the major policy that is available on marine insurance.

1. Voyage Policy.

This is a part-time policy that expires as soon as a specific voyage trips come to an end. It is also known as the type of policy that is specifically in charge of one particular voyage from the point its leaves to the end of the trip.

It is one of the best policies in marine insurance and it is advised that every exporter needs to buy this type of policy covers each time they want to send a shipment outside the country.

2. Floating Policy.

Floating policy: this is the type of policy that is made for a large exporter or business. In this policy plan, the insured agrees on the time, year, and the particular good, with the transportation mode, and the destination which the policy/shipment and goods will end omitting any other details on the ship at that period of time.

This is also known as a frequent policy which is basically for exporters who run a to and fro exportations businesses this makes the marine insurances very flexible.

3. Port Risk Policy.

Port Risk Policy: This is the type of marine policy which takes cover for the ship when it is stationed at a port. It takes the cover of the loss for the ship at stationary.

4. Mixed Policy. 

A mixed policy is the kind of marine insurance policy that gives the policyholder the benefit of combining only two policies known as voyage and time policy.

5. Named Policy.

This is one of the most essential/popular marine insurance policies. in these plans the name of the ship is always included in the document of the insurance company. This policy is also issued in the name of the ship.

6. Time policy.

Time policy in the marine insurance policy; This is a policy that takes coverages on a specified period of time which is usually noted for one year.

7. Single vessel policy.

This is the type of marine insurance policy which covers only one vessel in the ship, it is coverage made for small shipowners having only a vessel in the ship.

8. Blanket Policy. 

This is the type of policy where the policyholder pays a maximum protection fee at the time he purchases the policy.

See other Related Insurances: life Insurance

Major Types of  Marine Insurances

However, there are different types of marine insurance, we are going to discuss briefly some of the types of marine insurance we have. The following are.

  • Hull Insurance.
  • Liability Insurance.
  • Marine Cargo Insurance.
  • Freight Insurance.
  • Protection and Indemnity.

1. Hull Insurance

Moreover, this is the type of marine insurance that covers physical risk and damages such as collisions sinking, fire, and piracy. It can be said that it takes covers against damages along the journey.

This insurance is alway taken by the owner of the ship to ensure protection to the ship and also to avoid any vessel losses.

2. Liability Insurance.

Liability insurance takes part as a hull policy under this Insurance compensation is made for any liability that occurs when the vessel collides with another and damages occur. The liability coverage pays for the damages.

3. Marine Cargo Insurance.

Marine cargo Insurance; the insurance protects the cargo owner from damages or loss of cargo when during a ship accident or due to a delay in voyage or unloading. Marine cargo insurance is also referred to as the insurance policy covering the goods from the country where they leave to the destination.

4. Freight Insurance.

This freight insurance provides coverages for the loss of goods transported in bulk with the ship. In this case, the vessel cost or the freight money can only be paid to the operator only when the goods is been delivered successfully without any harm or damage.

5. Protection and Indemnity.

it is also known as the P&I club, this is where the risk of the third party is been covered. it ensures coverage of the liabilities to the third party and risks that may occur.

  • protection: protections of the risk attached with the ownership vessel such as crew. while
  • Indemnity: This is the cover for the hiring of the ship such as cargo-related claims.