Explain various types of Marine insurance.

Q. Explain various types of Marine insurance.

Ans: Types of Marine Insurance

1. Hull Insurance: covers any loss or damage to ships, tankers, bulk carriers, smaller vessels, fishing boats and sailing vessels. It covers the insurance of the vessel and its equipment i.e. furniture and fittings, machinery, tools, fuel, etc. cover the risk while the vessel is under construction.

2. Cargo Insurance: It is taken in respect of the cargo carried by the ship from one place to another. This covers goods, freight and other interests against loss or damage to goods whilst being transported by rail, road, sea and/or air.

3. Freight Insurance: Freight is the rent or amount paid for the transportation of cargo. This insurance provides protection against the loss of freight.

4. Liability Insurance: The insurer undertakes to indemnify against the loss which the insured may suffer on account of liability to a third party caused by collision of the ship and other similar hazards. It also covers legal liability towards damages to the third party in respect of accidental death, bodily injury or loss of or damage to property along with Legal costs and expenses incurred with prior consent.

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