TYPE OF MARINE INSURANCE POLICIES
The major types of marine insurance policies are
1. Time policy
A time policy is taken for definite period of time, usually not exceeding 12 months say from January 1, 1981 to December 31, 1981. This policy is most suitable for hull insurance.
2. Voyage policy
Where the subject matter is insured for a specific voyage, say from Karachi to Port Saeed it is named as voyage policy.
3. Mixed policy
This policy is the combination of time and voyage policy. It, therefore, covers the risks for both particular voyage and for a stated period of time.
4. Floating policy
Floating policy is taken for a relatively large sum by the regular suppliers of goods. It covers several shipments which are declared afterwards along with other particulars. This policy is most situated to exporter in order to avoid trouble of taking out a separate policy for every shipment.
5. Valued policy
Under its terms the agreed value of the subject matter of insurance is mentioned in the policy itself. In case of cargo this value means the cost of goods plus freight and shipping charges plus 10% to 15% margin for anticipated profit. The said value may be more than the actual value of goods.
6. Unvalued policy (Open Policy)
Where the value of the subject matter of insurance is not declared but left to be ascertained and proved later it is called unvalued policy.
7. Builder's risk policy
This policy is issued for more than one year. This covers the risk of damage to vessels from the time its construction commences until its trail is completed.
8. Blanket policy
Under the condition of the blanket policy the maximum limit of the required amount of protection is estimated which is purchased in lump sum. The amount of premium is usually paid in advance. This policy describes the nature of goods insured, specific route, ports and places of the voyages and covers all the risk accordingly.
9. Port risk policy
This policy covers all the risk of a vessel while it is standing at a port for particular period of time.
10. Wager policy
Where the assured has no insurable interest in the subject matter of insurance that is know as wager policy. As this policy has no legal effect so it cannot be taken to a court of law. If underwrite refuses to accept the claim the policy holder cannot take any legal action against him. It is, therefore, also called as gambling policy.
11. Special hazards policy
This policy covers special risks incident to piracy and war. It provides protection to insured under agreement against seizure, capture, detention and other war risks.
12. Composite policy
This type of policy is purchased from more than one under writers. If there is no any motive of fraud then insured will be indemnified by each under writer separately in case of loss.
13. Block policy
This policy is particularly purchased to gold diggers. It covers all the risks of damage to gold from the time of its recovery to its distinction. This types of policy has been introduced in Africa and is very popular in the mine fields of gold.
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