Marine insurance policies - SS2 Commerce Lesson Note

Marine insurance policies provide coverage for ships, cargo, and other maritime-related risks. They protect against losses or damages that may occur during sea voyages or transportation of goods by sea.

Voyage Policy:

A voyage policy provides coverage for a specific voyage or journey. It protects the cargo or goods being transported from one port to another. Once the voyage is completed and the goods have safely reached their destination, the policy coverage ends.

Time Policy:

A time policy provides coverage for a specific period of time, typically a year, regardless of the number of voyages undertaken during that period. It offers continuous protection for the insured vessel or cargo throughout the specified time frame.

Valued Policy:

A valued policy is a type of marine insurance policy where the value of the insured subject matter (ship or cargo) is predetermined and agreed upon by the insurer and insured. In case of a total loss, the agreed value is paid as compensation, regardless of the actual value of the subject matter at the time of loss.

Unvalued Policy:

An unvalued policy is a type of marine insurance policy where the value of the insured subject matter is not predetermined. The value is determined at the time of the loss or damage, based on the actual worth of the subject matter. In case of a partial loss, the compensation is based on the proportionate value of the damage incurred.

Marine insurance policies provide coverage for various risks, including damage to the vessel, loss or damage to cargo, liability for third-party claims, and other maritime-related perils. They offer financial protection to shipowners, cargo owners, and other parties involved in maritime trade.