This document discusses marine insurance. Marine insurance covers risks associated with transporting cargo, freight, ships, and other interests by sea. The key types of marine insurance discussed are cargo insurance, hull insurance, freight insurance, and liability insurance. Cargo insurance covers goods being transported by ship against risks like war, fire, theft, and confiscation. Hull insurance insures the ship itself against risks during voyage. Freight insurance covers the financial interest a shipping company has in freight charges. Liability insurance pays damages to third parties in the event of compensation liability. The document also outlines principles of marine insurance like insurable interest, implied warranties of seaworthiness, non-deviation of route, and legality of venture.

2. MARINE INSURANCE
The business of effecting contracts of insurance
upon the vessels any description including cargo,
freights and other interests which may be legally
insured.

3. Subject-Matter of Marine Insurance
• Cargo Insurance
• Goods being carried by marine ships are known as
Cargo. These goods are insured against risk of
voyage. Risks arising out of voyage include war, fire,
theft, forfeiture of goods by enemy etc.
• .

4. • Hull Insurance
• Ship is also insured like the
goods against the risk rising
out of marine voyage. This
is known as insurance of
ship or hull insurance.

5. • Freight Insurance
• The shipping company charges some freight for
carrying the cargo. Hence, the shipping company
has an interest in freight.
• Liability Insurance
• The insurance which being payable for the
damage is known as is taken for damage to the
third party and compensation liability insurance.

6. PRINCIPLES OF MARINE
INSURANCE
• Principle of Insurable Interest
• Like other insurance contracts, in marine
insurance also, the insured must have the
insurable interest in the property insured.
Following have the insurable interest in marine
insurance
(A) Owner of ship in his ship

7. • (B) Passengers in their goods
• (C) Employees and captain of ship in their
salaries
• (D) Owner of goods in his goods.
• (E) Moneylender who has provided money on
security of goods in these goods.
• (F) Person who charges freight in that freight.

8. • Principle of Implied Warranties
• There are certain facts related with contract,
which need not to be explained clearly and
specifically. Even in the absence of such clarity
and specification, their existence is accepted.
• Worthiness of Ship
• Worthiness of ship means that ship should not
have any type of problem which can create the
possibility of damage to the insured’s property on
the ship.

9. • Non-Deviation of Ship
• Ship route is pre-fixed. The insurance
company can easily assume that ship will
follow no other route.
• Legality of Venture
• The insurance company is bound to pay the
compensation only when the objective of
voyage is legal.

11. DIFFERENCE BETWEEN LIFE INSURANCE AND GENERAL INSURANCE
Basis of Difference Life Insurance General Insurance
1. Type of Contract This is not a contract of indemnity. After a certain time.,
payment of sum assured is made.
This is a contract of indemnity. Compensation is
paid only when there is some damage.
2. Objective The objective of this insurance is to control financial
problems of self and family.
This insurance is taken for the safety of
property.
3. Limit of amount There is no limit of amount for taking insurance policy. Insurance can be taken upto the maximum
value of the property.
4. Principle of Subrogation This principle does not apply here. This principle applies here.
5. Period This policy can e taken for an number of years. The maximum period for this policy is one year.
6. Safety and Investment This involves both the elements. It involves only safety.
7. Insurable Interest Insurable interest is required at the time of taking the
insurance policy.
In fire insurance, insurable interest is required
both at the time of taking policy as well as the
time of loss. But in marine insurance it is
required at the time of loss.
8. Moral Risk This risk is minimum here because no person would like to
kill himself.
This risk is higher as many people can damage
property themselves and ask for compensation.
9. Surrender Value It has surrender value. On cancellation of the policy some
money is refunded.
No such provision of a surrender value exists
here.