What Are The Four Main Types Of Marine Loss?

What are the 5 principles of marine insurance?

The fundamental principles of Marine Insurance are drawn from the Marine Insurance Act, 1963* As in all contracts of insurance on property, the contract of Marine Insurance is based on the fundamental principles of Indemnity, Insurable Interest, Utmost Good Faith, Proximate Cause, Subrogation and Contribution..

What is general average in marine?

The law of general average is a principle of maritime law whereby all stakeholders in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency.

What is total loss in marine insurance?

A ship having ceased to exist after a casualty, either due to being irrecoverable (actual total loss) or due to being subsequently broken up (constructive total loss) (LMIS, 1995). The constructive total loss occurs when the cost of repair exceeds the insured value of the ship.

What are the types of marine losses?

2 Types of Marine Losses: Total Loss and Partial LossActual Total Loss: ADVERTISEMENTS: Actual total loss occurs under these following situations: (a) The subject-matter is completely destroyed. … Constructive Total Loss: This occurs when the ship is abandoned for certain reasons. It is not commercially viable to retrieve the ship or cargo.

How many types of marine insurance are there?

So in terms of coverage, these three types of marine insurance clauses: Institute Cargo Clauses A, B, and C. Clause A provides maximum coverage, Clause C provides basic risk coverage.

What do you mean by marine losses?

A marine loss is a loss in quantity or quality of commodities that occurs between the time the B/L is issued to the shipping company and the time the shipping company turns over custody and control of the commodities to the Awardee (or the Awardee’s designated C&F agent), usually at the port.

What does a marine policy cover?

Inland marine insurance is a type of business insurance that helps cover products, materials and equipment while they are transported on land, such as by truck or train. This coverage is meant to help protect business property that is movable or used for transportation or communication purposes.

What is not covered in marine insurance?

Marine Insurance doesn’t offer any coverage in the following cases: Loss or damage due to willful act of negligence and misconduct. … Loss or damage due to wire, strike, riot, and civil commotion. Loss or damage arising from the use of nuclear fission, weapon, or any other radioactive force.

What is all risk marine insurance?

As the name entails, all risk marine insurance is cargo insurance that covers any and all instances of theft, loss, or damage to your cargo. The insurance policy is all-encompassing and covers the following instances of theft, loss, or damage: Stranding. Sinking.

What are the two types of marine insurance?

Types of Marine Insurance PoliciesMarine Cargo Insurance. Marine Cargo insurance is a type of insurance policy that covers the loss or damages caused to marine cargo during the transit. … Liability Insurance. … Hull Insurance. … Freight Insurance.

What are the features of marine insurance?

Marine insurance is an indemnity policy under which an insurer agrees to compensate for losses or damages in consideration of the timely payment of premium. The contract of marine insurance shall cover the clause for indemnity as in no case Assured shall be allowed to make profits out of claim amount.

What is actual total loss in marine insurance?

Actual total loss. Actual total Loss is defined in section 57(1) of the Marine Insurance Act 1906. This provides: Where the subject-matter insured is destroyed, or so damaged as to cease to be a thing of the kind insured, or where the assured is irretrievably deprived thereof, there is an actual total loss.