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This type of insurance policy covers the risks which are likely to occur during sea transit. The policy provides protection for goods or cargoes and ships against the perils of the sea.
Types of Marine Insurance
- Hull Insurance: The shipowner takes this kind of marine policy in order to cover the engine and hull of the ship against damages by storm, fire, collision, and other sea dangers.
- Cargo Insurance: This marine policy covers damages to cargoes against all perils at sea.
- Freight insurance: The freight policy is taken to cover non-payment of charges for carrying goods. Freight is usually paid in advance. This risk is faced by the shipowner to pay back freight if the cargo fails to get to its destination due to loss in transit.
- Shipowner liability: This policy is taken against risks which may arise due to the ship owner’s negligence or that of his employees.
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