Characteristics of Marine Insurance Contract

Insurable Interest:

The assured must have insurable interest in the subject matter. Its absence will make the insurance policy as gambling. It must be present at the time of the loss and need not exist when the policy is affected Characteristics of Marine Insurance Contract

2. Sea Worthiness:

It is one of the clause of implied warranty that the ship must be in a fit condition in order to encounter the ordinary perils of voyage being insured. The condition of the sea worthiness must be satisfied before the commencement of the voyage.

3. Fair Dealing:

It is the important essential of the contract that insured must disclose all the material facts concerning the risk insured The contract becomes void in case of concealing any fact

4.Contract of Indemnity:

As marine insurance is a contract of indemnity, so insured cannot claim before he suffers loss; In the absence of the loss the entire amount paid as premium will be possessed by the underwrite as profit.

5.Non Deviation:

The ship must follow proper route which is usually specified in the policy. Any departure by a ship from such course is called as deviation. Deviation is however, allowed in unavoidable circumstances.

6. Legality of the Venture:

The object of the voyage must be lawful. For example a policy to cover the risk of smuggling and trading with enemy in time of war are void. In case of default, the underwriter is discharged from his liability.

7. General Consideration:

The ship must carry the necessary documents to establish her nationality. The parties must be competent to contract and it should be made by the free Dfa Ho consent of the parties. The agreement must be supported by a valuable consideration. Contract of marine insurance must be embodied in a policy.

8. Condition of the Cargo:

The cargo  must be in sound condition and properly packed.