Marine Insurance: Nature, Kinds, Principles and Importance

Abstract

Marine Insurance is the oldest form of insurance in the world. With the globalization of the economy, supplier linkages span oceans, but still require goods to be delivered to the concerned party in a pristine state, just-in-time. Capital or consumer goods are produced in one country whereas users or consumers are located in some other part of the country or elsewhere in the world. Therefore, there is a need for transportation or transit of such goods by rail, road, inland waterway, sea or air. During this process of transportation, the cargo is exposed to various hazards like theft, breakage or damage. In export/ import trade, goods are transported from the warehouse of the exporter at some interior place in one country and travel to the port for loading on the vessel. There is a trans-shipment of the goods from the land vehicle to the vessel.

Keywords: Marine Insurance, Transportation, Cargo, Warehouse, Indemnity, Insurable Interest, Utmost Good Faith, Subrogation