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The origins of marine insurance law were in the law merchant, with the establishment in
England in 1601 of a specialized chamber of assurance separate from the other Courts.

Marine insurance covers the loss or damage of ships, cargo, terminals, and any
transport or property by which cargo is transferred, acquired, or held between the points
of origin and final destination. Examples of the covered perils are fire, theft, jettison,
collision, contact, heavy weather, stranding/foundering, sinking, war perils, etc. Cargo
insurance is a sub-branch of marine insurance, though marine insurance also includes
onshore and offshore exposed property, such as container terminals, ports, oil
platforms, pipelines, etc.

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  s 
 s - refers to the ship, hull and machinery of the
vessel.


- refers to goods or merchandises that are being carried from one place to
another or are being imported or exported.


- refers to the consideration that is payable to the ship owner in respect
of carriage of goods by his/her ship. Sometimes the freight is ƍpre-paidƎ when it is
at the risk of the cargo owner, and sometimes the freight is ƍpost-paidƎ when it is
at the risk of the ship owner.

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Ïn order to validate a claim, a loss must take place within the period of specified
12 months.
Time policy comes to an end as soon as the period is over

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Ïn order to validate a claim, the loss must take place within or during the
specified voyage. Normally cargo is insured on this basis.

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Ït is virtually a mixture of both the time and voyage policy. The policy virtually
covers a voyage and also an additional time after completion of the voyage.



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This type of policies is usually used for cargo insurance. Each time a shipment
takes place the insured simply declares the shipment and obtains a certificate of
insurance from the insurers.

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These types of policies are issued in respect of ships whilst in the process of
erection or building at dockyards.

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ike the floating policy, the open cover system provides a cover usually for
twelve months, where the insured indicates that the insurers shall insure each
and every shipment to be declared by the insured, as per terms and conditions
of the covered note.

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There are some special policies such as Yacht Ïnsurance, War Risks, Ïncreased
Value (ÏV), overdue insurance, Cargo insurance.

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A marine policy typically covered only three-quarter of the insured's liabilities
(e.g., collision with another ship or fixed object, wrecks removal which block a
harbor) towards 3rd parties. Ïn the 19th century, ship-owners banded together in
mutual underwriting clubs known as Protection and Ïndemnity Clubs (P&Ï), to
insure the remaining one-quarter liability amongst themselves.

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   A peculiarity of marine insurance, and

insurance law generally, is the use of the terms ƍconditionsƎ and ƍwarrantyƎ. The
meaning of these terms is reversed in insurance law. Thus, the Marine Ïnsurance
Act 1906 refers to implied warranties, one of the most important of which is that
the vessel is seaworthy

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&   The term ƍsalvage' refers to the practice of rendering
aid to a vessel in distress. Apart from the consideration that the sea is
traditionally 'a place of safety', with sailors honor-bound to render assistance as
required, it is obviously in underwriters' interests to encourage assistance to
vessels in danger of being wrecked.


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Ïnland marine insurance indemnifies loss to moving or movable property and is an
outgrowth of ocean marine insurance. Historically, ocean marine insurance held the
transporter responsible for property loss before, during, and after the completion of the
voyage. Ïn the 1800s the non-ocean portion of the journey grew as cargoes were
transferred to non-ocean vessels (such as barges) and the term "inland marine" was
coined. Ïnland marine policies became known as "floaters" since the property to which
coverage was originally extended was essentially "floating." The coverage has grown to
include property that just involves an element of transportation.

The property that is insured under inland marine coverage is typically one of the
following:

Actually in transit

Held by a bailee

At a fixed location that is an instrument of transportation

A movable type of goods that is often at different locations

Typically, "inland marineƑ, represents a wide range of the types of coverages such as
accounts receivable, communication towers and equipment, computer coverage,
contractors equipment, commercial floaters, installation, leased property, motor truck
cargo, museums, musical instruments, etc.

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