Answer the following questions in short:
What are the different types of marine insurance policies?
ANSWER:
The following are the various types of marine insurance policies:
i. Voyage policy - In this policy, the subject matter is insured for a particular journey, irrespective of the time involved in the journey.
ii. Time policy - In this policy, the subject matter is insured for a given time period. The policy may contain a continuation clause, according to which the insurance can be extended till the voyage is completed or till the ship arrives at the port.
iii. Mixed policy - This policy is a combination of the time policy and the voyage policy. It provides protection against sea perils for a particular voyage and for a fixed period of time.
iv. Valued policy - In this policy, the insurance is of a fixed amount as agreed upon by the insurer and the insured.
v. Floating policy - In this policy, several shipments are insured under one insurance contract. The policy holds valid till the time the entire amount of insurance is exhausted.
vi. Blanket policy - In this policy, the maximum amount for which the insurance is required is estimated. In addition to this, the premium for this policy is paid in advance.
vii. Port risk policy - This policy covers the risk against the damage caused to the vessel while it is being anchored at the port for a given time period.
viii. Composite policy - This policy is taken by more than one individual. There is more than one insured in this kind of insurance policy. These insured have a separate and distinct liability.
