Type of Marine Insurance Policies
The major types of marine insurance policies are indicated below: 1.
Time Policy:
This policy is most suitable for hull insurance.
2. Voyage Policy:
This policy is the combination of time and voyage policy. It, therefore, covers
Mixed Policy:
the risks for both particular voyage and for a stated period of time
4. Floating Policy:
Floating policy is taken for a relatively large sum by the regular suppliers of
goods.
5. Valued Policy:
Under its terms the agreed value of the subject matter of insurance is mentioned in the policy itself. In case of cargo this value means the cost of goods plus freight and shipping charges plus 10% to 15% margin for anticipated profit. The said value may be more than the actual value of goods.
6. 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.
Builder’s Risk Policy:
This policy is issued for more than one year. This covers the risk of damage vessels from the time its construction commences until its trail is completed.
Blanket Policy:
The amount of premium is usually paid in advance.
Port Risk Policy:
This policy covers all the risk of a vessel while it is standing at a port forparticular period of time.
10. Wager Policy:
Where the assured has no insurable interest in the subject matter of insurance that is know as wager policy. As this policy has no legal effect so it cannot be taken to a court of law. If underwrite refuses to accept the claim the policy holder cannot ake any legal action against him. It is, therefore, also called as gambling policy.
11. Special hazards Policy:
This policy covers special risks incident to piracy and war. It provides protection to insured under agreement against seizure, capture, detention and other war risks
12. Composite Policy:
This type of policy is purchased from more than one under writers. If there is no any motive of fraud then insured will be indemnified by each under Dfa Ho writer separately in case of loss.
13. Block Policy:
This policy is particularly purchased to gold diggers. This type of policy has been introduced in Africa and is very popular in the mine fields of gold.
