Marine insurance

Marine insurance is the general term used for insurance that deals with cargo, ships, and terminals and the damages and loss that they may suffer.

It is the branch of the insurance sector that deals with the loss or damage that may occur at any point of transfer of cargo or goods.

According to Wikipedia, it “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.”

See also

• Brief background of marine insurance
• Specialist Marine Insurance Policies
• Inland marine insurance

Marine insurance as we know it today actually has its roots in a specialized chamber of assurance that was created in England in 1601. This chamber was considered separate from the other Courts back then. In fact, marine insurance is considered to be one of the oldest – if not the oldest – type of insurance.

With the establishment of Lloyd’s of London and other similar companies, a standardization of marine insurance as a practice became necessary. Centuries later, in 1906, the Marine Insurance Act was formalized and became the basis of modern marine insurance (as well as other general types of insurance) today.

However, Marine insurance does have many other sub branches. Here are some of the specialist policies in existence today.

Newbuilding risks

This kind of policy covers a ship while it is still in construction.

In particular, it covers any risk of damage to the hull while it is still being built.

Yacht insurance

As the name implies, this type of policy covers leisure craft.

War risks
This type of policy covers the risk of loss or damage that may occur when a vessel passes by a war zone.

It also includes loss due to piracy.

Increased Value

Also known as IV. This policy adds cover to the difference between the insured and market value.

This marine insurance type came about due to the risk that cargo in transit faces even when not in the ocean. Thus the name inland marine insurance.

This can cover transport in barges and even loss at a fixed location (on land) that is part of the transport process.