Marine insurance is related to business world; it shields the transport cargo's like shipping business, terminal commerce, transports etc. which are involved in shipping property from certain points to points and places to places. Not only Marine insurance covers them up but also it manages to protect the damage loss. In simple terms the Marine insurance covers these transport sides.
Terms needed to be familiar with in Marine Insurance: To understand Marine insurance broadly we must know the most relevant terms, to it, Policy, Underwriter and Insured. Where we record the insurance between two or more parties, either it be an instrument or ruling paper, it is called Policy. The simple term Insurer here is replaced by the Underwriter and obviously the term insured means the person or party who is indemnified.
Marine Policies or Classification of Marine Policy: According to the state, the policy of the Marine insurance can be classified into six sagas. Which are:
(i) Time Policy: This covers the loss or the risk for a certain agreed time.
(ii) A Valued Policy: In this part we measure the agreed value of the insured stuff.
(iii) Mixed Policy: This is business, means it refuges trips to certain places within a certain time limit.
(iv) Floating Policy: To its name it really doesn’t deal with floating but narrates the insurance in simple terms and leaves the naming of the property on certain incidents.
(v) Open Policy: Well this has similarity to its name and work, onto this policy the value of the insured property is not defined but is determined when the loss-recovery is under terms.
(vi) Voyage Policy: This has similarity with the Floating policy but it only covers a particular voyage.
Reinsurance in Marin Insurance: According to this segment when an underwriter is facing loss or damage it can get a part of the reinsurance with another underwriter insurance company. To put it simple it works as a back-up to the underwriter. Also to keep in mind, this does no harm to the original insured because the original one remains distinct. This also puts the insured back as it can never gain access on the reinsurance, for it is not legal for one party to have the two benefits, obviously he didn’t sign for it and he didn’t help the insured in it too.
