Importance Of Marine Insurance

The subject of Marine Insurance is very wide and encompassing. It entails many different policies and clauses which vary according to the offers of the insurer and the needs of the assured. Insurance in general is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment called a premium. Both life and property can be insured. Commonly insured assets include buildings and vehicles, and goods in transit. In the world of shipping, many risks are involved which are termed perils of the sea. These include, but is not limited to; damage to vessel by objects such as ice bergs, or damages arising from dangerous weather conditions, theft, and piracy. As a result, it is imperative for all vessels being operated

It contains all benefits and clauses relating to claims of the insured arising from an accidental damage, loss of property, loss of life and so on. Marine insurance is essential to every participant in the world of commercial shipping, as trading across the high seas is a very high risk enterprise. Many different policies exists according to the type of insurance coverage needed. The importance of Marine insurance cannot be overemphasized. The Policy can be defined more specifically, according to Huebner (1980), as a contractual agreement whereby one party undertakes, in return for a stipulated consideration and in accordance with definitely expressed restrictions, to indemnify another party against loss or damage to a defined interest in vessel, cargo, or freight earnings when unavoidably caused by certain definitely enumerated contingencies. On a single commercial voyage, there are many stakeholders. Interests range from the ship owners themselves, their families, the crew of the ship themselves, their families, the owners of the cargo, and yes their families as well. This accounts for the broadness of the topic of marine insurance and policies. Commercial shipping is a very risky venture and all that is contained inside the ship, including the vessel itself should be insured. There are a number of policies which cover each