As we know Marine Insurance deals with transports, or it’s an insurance related to the transports, voyages, shipping etc. it has certain elements which match up its features. There are actually 8 main Elements of Marine Insurance Contract, which are:
1. Features of the Mutual or General Contract
(a) Proposal: The broker prepares a proposal form, which in marine insurance is known as a slip, on the acceptance of the terms to insure it from the owner is the discussion here.
(b) Acceptance: This settles the original slip to the underwriter or the insurer.
(c) Consideration: To this, they determine the premium and pay it on the time of their deal.
(d) Issue of Policy: After these steps the broker will send note to its workers where he will talk about the terms and conditions.
2. Insurable Interest
Well obviously like any other insurance the insured will get the insurable interest according to the contract and this is determined here but only when the loss is according to the deal is insurable, uninsurable facts will not be counted. The forms it can have will vary on ownerships and in re-insurance.
3. Mutual Understanding
Mutual understanding is so important for any business deal and for certain the insurance is no different. There for the facts of common knowledge, requirements, terms and conditions, rules etc. here are clarified here between the underwriter and the insured.
4. Indemnity Policy
Here the insurer insures the indemnity if the insured cargo, shipping, terminals or whatever transports that are under circumstance. As to indemnify there will be loss recovery no extra benefit and the insured value will be as exact as it is to be.
5. Subrogation Policy
This has its similarity with the above mentioned policy. This also certifies that the insured should only get the exact amount of loss recovery no extra benefit and no less or no more than the terms agreed on.
Warranty is important in any contract. This section allows both parties to word to warranty their following of the terms. It is of two kinds:
a. Express Warranties: These warranties are expressed in the contract.
b. Implied Warranties: Where there is no implication of these warranties but are clearly or mutually understood and agreed by the parties.
7. Proximate Cause
This is in simple words like liability. The one who would cause trouble or loss intentionally or on conditions that are not agreed on, he himself would be solemnly responsible for it.
According to this section a contract is assignable till then when it is fumed into confusion or the one tricks the other. There is no fixation but it is good to sign as soon as both parties come to a mutual points.
So these are the main elements of a Marine Insurance and their features upon which it functions properly. These points can also elaborately be discussed if you find certain interest in the subject or policing insurance.