Principle & Practice
B.Com (IV Sem)
According to the Marine Insurance Act 1963,
“ An agreement whereby the insurer undertakes to
indemnify the assured, in the manner & to the
extent thereby agreed, against losses incidental to
marine adventure. It may cover loss or damage to
vessels, cargo or freight.”
History of Marine Insurance
Marine insurance was the oldest form of insurance.
Evidence can be seen in Vedic civilization &
Firstly developed in England & imported from the cities
of northern Italy.
Maritime insurance was the earliest well developed kind
• Origins in the Greek & Roman maritime loan.
Separate marine insurance contract developed in genoa &
other Italian cities in 14th century & spread to Northern
Premiums varied with spontaneous estimates of the
variable risk like seasons & pirates.
History of Marine Insurance
In the late 1680s, the Edward Lloyd opened a coffee house on
• Popular haunt for ship owners, merchants & ship captains.
1906 Marine insurance act organized the previous common
• It is both an extremely thorough & concise piece of work.
• Title of the Act refers to marine insurance, the general
principles have been applied to all non- life insurance.
Lloyd’s & the institute of London underwriters developed
A contract is inadmissible in evidence, unless it is
evidenced by a marine policy in accordance with this
A marine policy may be executed and issued when the
contract is concluded or afterwards.
A marine policy must specify:
the name of the insured or of a person who effects the
insurance on behalf of the insured;
the subject-matter insured;
the perils insured against;
the voyage or period, or both, covered by the insurance;
the sum insured; and
the name of the insurer
A marine policy must be signed by or on behalf of the
Notwithstanding subsection (1), where the insurer is a
corporation, the corporate seal is sufficient.
Where a marine policy is subscribed by or on behalf of
two or more insurers, each subscription, unless the
contrary is expressed, constitutes a distinct contract with
A marine policy must specify the subject-matter
insured with reasonable certainty, but need not specify
the nature and extent of the interest of the insured in
A marine policy may be a voyage policy or a time
A marine policy may be a valued policy or an
A marine policy may be floating policy.
o A course of travel or passage, especially a long journey by
water to a distant place.
o A passage through air or space, as a flight in an airplane or
o A journey or expedition from one place to another by
o Often, voyages. journeys or travels as the subject of a w
ritten account, or the account itself: the
voyages of Marco Polo.
Subject to the provisions of this Act, every lawful
marine adventure may be the subject of a contract of
In particular there is a marine adventure where :
• Any ship goods or other moveable's are exposed to
maritime perils. Such property is in this Act referred to
as "insurable property";
• The earning or acquisition of any freight, passage
money, commission, profit, or other pecuniary benefit,
or the security for any advances, loan, or
disbursements, is endangered by the exposure of
insurable property to maritime perils;
• Any liability to a third party may be incurred by the
owner of, or other person interested in or
responsible for, insurable property, by reason of
Perils of sea
Perils of the Sea is a maritime and insurance term for
"those causes of loss for which the carrier is not legally
liable; the elemental risks of ocean transport. every
accidental circumstances not the result of ordinary wear
and tear, delay, or of the act of the assured, happening in
the course of the navigation of the ship, and incidental to
the navigation, and causing loss to the subject-matter of
Perils of sea
These would include storms, waves, and wind; collision;
grounding; fire, smoke and noxious fumes; flooding,
sinking and capsizing; loss of propulsion or steering; and
any other hazards resulting from the unique environment
of the sea. War perils, "pirates, rovers, thieves, captures,
seizures, restraints, and detainments of princes and
peoples, jettisons and barratry" are also regarded as perils
of the sea. It is generally held that it does not include the
ordinary action of the winds and waves.
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