A marine insurance policy is a contract between an insurer and insured that provides coverage for risks at sea or on inland waterways. There are several types of marine insurance policies that can be categorized based on the insured interest, time period, value, description of insured items, and issuing authority. The main types are hull insurance, cargo insurance, freight insurance, time policies, voyage policies, and policies issued by Lloyd's or insurance companies.

1. Prof. Isha Jaiswal
Types of Marine Insurance Policy

2. Introduction
 A document in which there is a contract of marine
insurance between two parties- the insurer and insured
is said to be a marine insurance policy.
 When the premium is paid by the insured in the
marine insurance, a ‘cover note’ is immediately issued
to the insured and the policy is issued afterwards.

3. Marine Insurance Policy
includes
 Name & address of insured and his agent.
 Name of subject matter and the description of the risk
which is required to be covered by this insurance.
 The time period and the voyage for which the policy
has been taken.
 The insured sum, premium payable.
 The name of the issuer
 Marine insurance policy is considered valid agreement
only when it is duly stamped.

4. Types of Marine Policy
 On the basis of insured interest
1. Hull Policy
2. Cargo Policy
3. Freight Policy
 On the basis of time period
1. Time Policy
2. Voyage Policy
3. Mixed Policy
 On the basis of value of the insured subject matter
1. Valued Policy
2. Unvalued or open policy

5. Types of Marine Policy
 On the basis of description of insured ships, goods or
subject matter
1. Unnamed Policy
2. Named Policy
3. Fleet Policy
4. Floating Policy
5. Blanket Policy
6. Policy Proof of Interest (PPI)
7. Block Policy
8. Currency Policy
9. Yatch Policy
 On the basis of issuing authority
1. Lloyd’s Policy
2. Company Policy

6. On the basis of insured
interest
Hull Policy:
The insurance policy taken by the owner of ship and
its equipments are known as Hull policy. It is
basically a property insurance which covers the
ship itself, the machinery and equipment.
Furthermore, the insurance covers some liabilities,
normally collision liability with another ship and
sometimes also liability for colliding with other
objects than another ship.

7. Claims include
 Total loss of the ship
 Damage to the ship, engines and equipment
 Explosions and fire
 Collisions – damage sustained to the ship and
sometimes also liability towards the other ship.

8. Cargo Policy
The insurance policy taken by owners of the
goods.Cargo insurance (also called marine cargo
insurance) covers physical damage to, or loss of goods
while in transit by land, sea and air and offers
considerable opportunities and cost advantages if
managed correctly.
The ‘cargo’ transported by sea is subject to manifold
risks such as:
 Loss or damage at the port and
 Loss or damage during the voyage.

9. Marine cargo insurance’ provides
the insurance cover in respect of:
 Loss of or damage to cargo during transit by rail, road,
sea or air.
 Export and import shipments by ocean
 Shipment by inland vessels
 Consignments sent by rail, road, air & articles sent by
post
 Damages from bad weather
 Seawater or freshwater flooding

10. Freight Policy
Freight insurance indemnifies the ship owner for the
loss of earnings if the goods are damaged or lost
and are not delivered.

11. On the basis of Time Period
 Time Policy: This is designed to give cover for some
specific period of time. Time policies are usual in case
of hull insurance.
 Voyage Policy: This is a policy in which the limits of
the risks are determined by place of particular voyage.
Generally done for goods insurance, sometimes for
freight insurance.
 Mixed Policy: A mixed policy is blend of time policy
and voyage policy.

12. On the basis of value of the
insured subject matter
Valued Policy: A type of insurance coverage that places
a specific value on the insured property, such as the
hull or cargo of a shipping vessel. A valued marine
policy pays up to, the specified value in the event of a
total loss.
Unvalued Policy: The value of the property would be
determined following the event of a loss.

13. On the basis of description of insured
Ships, goods or subject matter
Unnamed Policy: The marine policy in which the name
of the ship, the name of voyage and the name of the
route of the voyage are not mentioned .
Named Policy: The marine policy in which the name of
the vessel, name of the voyage, the kind of the goods,
the description of the quota of goods and route etc.
have been mentioned.
Fleet Policy: When a single policy is taken for a group
of vessels, the policy is known as a fleet policy.

14. On the basis of description of insured Ships, goods or
subject matter
Floating Policy: An ‘open policy’ is also known as ‘floating policy’.
It is issued for a long duration and all consignments sent during the
period are covered by the insurer’s. This policy is suitable for big
companies that have regular shipments it saves them from the tedious
and expensive process of acquiring an insurance policy for each
shipment. The rates are fixed in advance the assured has to declare the
nature of each shipment and the cover is provided to all the shipments
the assured needs to deposit a premium for the estimated value of the
consignment during the policy period. It only mentions the amount for
which the insurance is taken out, and leaves the name of the ship or
ships and other particulars to be defined by subsequent declarations,
which will be declared by the assured by endorsement on the policy or
in other customary manner.

15. On the basis of description of insured Ships, goods or
subject matter
Blanket Policy: In such a policy the type of the goods and
the geographical boundaries have been informed. Under
this policy the amount is indemnified for a fixed time
period to the insured. The policy is taken to cover losses
within the particular time and place. The policy is taken for
a certain amount and premium is paid on the whole of it in
the beginning of the policy and is re-adjusted at the end of
the policy according to the actual amount at risk.
If the actual coverage of risk is less than the total amount of
insurance, the premium related to the excess amount is
returned to the insured.
On the other hand, if the amounts of shipments are greater
than the insured sum, additional premium is charged over
the excess protection.

16. On the basis of description of insured Ships, goods or
subject matter
Policy Proof of Interest (PPT): The policy is issued to
avoid the complication of the principle of insurable
interest. These are called 'Policy Proof of Interest' and
are honored by the insurer even in absence of insurable
interest.
This policy is based on mutual understanding, so, it is
called honored policies. This is also called wagering
policies because insurable interest is not required;
consequently, it cannot be legally enforceable.

17. On the basis of description of insured Ships, goods or
subject matter
Block Policy: This policy is considered to be wide-
spread because it includes the risk of marine and land
routes. It can cover the risk right from the
manufacturing factory to the distant over sea’s
destination. It covers the inland risk as well as the
marine perils.
Construction or Builder’s Risk Policy: This policy is
designed t cover the risks incidental to the building of
a vessel, usually given cover from the time of laying
the keel until completion of trails and handling over to
owners. In the case of very large vessel, the period
may extend over several years.

18. On the basis of description of insured Ships, goods or
subject matter
Yacht Policy: This policy is provides the risks to the
small boats, used for boating for pleasure. It provides
to cover the risk against the mechanics and the parts of
the boats. It is used for the specific area used for
boating, racing etc. It does not provide a cover to the
risks in the open sea. It is popular in rich countries like
America.
Currency Policy: This policy provides the risk against
the rates of foreign exchange. Policy issued in foreign
currency is called currency policy, where sum assured
is stated in foreign currency.

19. On the basis of issuing authority
Lloyd’s Policy: Marine insurance when effected
by Lloyd’s underwriter it is Lloyd policy.
Company Policy: Marine insurance when effected
by marine insurance companies and policies are
known as the company policy.