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What Are the Subject Matter of Marine Insurance?

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Submitted By hasib2012
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What are the subject matter of marine insurance?

The subject matter of marine insurance.
The subject matter of marine insurance covers:
I. Hull Insurance: The goods or cargoes shipped to a foreign country are exposed to the perils of the seas. The pirates and the men of war may loot away the goods. The marine insurance which safeguard cargoes from perils is known as cargo insurance.
Subdivision of Hull Insurance
The Hull Insurance is further Subdivision into -
(a) General Cargo vessels
(b) Dry Bulk Carriers
(c) Liquid Bulk Carriers
(d) Passenger Vessels
(e) Other Vessels.
II. Cargo Insurance: The word Hull refers to the body of the ship or vessel. The ship is exposed to a number of risks like cyclone, collision and arrest by foreign naval power. The insurance which protects the ship owner against the loss of ship is known as hull insurance.
III. Freight Insurance: The ship owner losses the freight when cargo pays freight at the time of shipment of goods and goods do not reach the port of destination. The ship owner guards against possible loss of freight by freight insurance.
IV. Liability Insurance: Liability Insurance is one in which 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.

Types/Classes of Policies
The major types of marine insurance policies are 1. Voyage policy
Where the subject matter is insured for a specific voyage, say from Karachi to Port Saeed it is named as voyage policy. 2. Time policy
A time policy is taken for definite period of time, usually not exceeding 12 months say from January 1, 1981 to December 31, 1981. This policy is most suitable for hull insurance. 3. Voyage policy and Time Policy or Mixed Policies
This policy is the combination of time and voyage policy. It, therefore, covers the risks for both particular voyage and for a stated period of time. 4. Valued Policy
A valued marine insurance policy is the opposite of an open marine insurance policy. In this type of policy, the value of the cargo and consignment is ascertained and is mentioned in the policy document beforehand thus making clear about the value of the reimbursements in case of any loss to the cargo and consignment. 5. Unvalued policy
Where the value of the subject matter of insurance is not declared but left to be ascertained and proved later it is called unvalued policy. 6. Floating policy
Floating policy is taken for a relatively large sum by the regular suppliers of goods. It covers several shipments which are declared afterwards along with other particulars. This policy is most situated to exporter in order to avoid trouble of taking out a separate policy for every shipment. 7. Blanket policy
Under the condition of the blanket policy the maximum limit of the required amount of protection is estimated which is purchased in lump sum. The amount of premium is usually paid in advance. This policy describes the nature of goods insured, specific route, ports and places of the voyages and covers all the risk accordingly. 8. Named Policies
Under this policies the name of the ship and the amount of insured cargo are mentioned. This policies are specific policies. 9. Block policy
This policie insures incidental inland risks too along with with the marine perils. 10. Port risk policy
This policy covers all the risk of a vessel while it is standing at a port for particular period of time.

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