What is Marine Insurance and its Types: All you need to know

What is Marine insurance: You must have heard about insurance. Perhaps you have taken some policy or are thinking of taking it. I have also written an article about insurance, where you will get all the basic information related to insurance.

marine Insurance
Marine insurance

But today I am going to tell you about an insurance policy that you never heard of. Or have just heard the name of the policy but don’t know about this policy properly.

Yes, today I’ll Marine Insurance. So what is this marine insurance and who should get this insurance, today I am going to give you the answers to these questions.

What is marine insurance?

Marine Insurance is mostly done by businessman or other big companies who have to send or bring their goods (cargo) from one country to another.

Obviously, if a company works to move goods from one country to another, then the cost of goods will also be in lakhs and crores, so if the goods are so valuable then the risk will also be higher.

if this stuff is being sent by the sea then the risk is huge. Because it takes more time to carry goods through the sea route and this increases the risk. In this time, anything can happen. Due to the sea lagoons, due to sudden storms, or any other problem, the ship and the things kept in the ship can be destroyed. Therefore, marine insurance is done to avoid this danger.

Marine insurance nowadays covers every ship and the goods loaded on it. Almost all the companies and ships that do such import/export business have marine insurance.

So now you must have understood what is Marine Insurance and who should get it done. 

Types of Marine Insurance

There are three (3) types of marine insurance.

  • Ship Insurance
  • Cargo Insurance
  • Freight Insurance

#1 Ship Insurance

The ship is only insured by the shipowner, so that if there is any damage to the ship in the sea, such as if the ship collides with icy rocks, or if the ship gets stuck in big waves, If there is any loss to the ship, then the insurance company compensates the shipowner for the loss according to the “terms & conditions” of the policy .

The ship insurance policy only insures the ship and is compensated only when the ship is damaged. It has nothing to do with the things kept inside the ship.

#2 Cargo Insurance

Through the name, you must have understood that only the cargo kept inside the ship (Cargo) is insured. So if there is any damage while carrying the goods, such as the goods break or is stolen, then according to the “terms & conditions” of the insurance company policy, the owner of the goods would compensate for the loss.

#3 Freight Insurance

It sounds a bit strange to hear, but it is very important to get this done as well. What happens in this is that the cost incurred for carrying the goods means that the Freight that has to be paid is insured.

Now you must be wondering why the rent is insured. Let me try to explain to you. Whenever you order any item from another person or company and that stuff comes out broken or damaged, will you take those goods ?? It is obvious why you will take.

But the person who sent you the goods was damaged. Even if they must have got the insurance of the goods, the money that was spent to get the goods to you, the money that you read and paid, was lost. 

Therefore, Freight is also insured so that if the luggage breaks down or is stolen at the port while unloading from the ship, then the owner of the goods does not have to suffer much damage.

But it is not like that any person willfully breaks any goods and then insurance. There are a lot of “terms & conditions” in such policies and the loss is compensated accordingly.

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