INSURANCE OF PROPERTY IN MARINE INSURANCE
The main property of marine insurance is given below:
(1) Hull Insurance
(2) Cargo Insurance
(3) Freight Insurance.
1. Hull Insurance
This is the insurance effected by the ship-owner on the actual vessel and its machinery. It covers all the perils of the sea, i.e. storm, stranding, collision, fire and it arranges on an annual basis.
2. Cargo Insurance
This policy is arranged for goods or merchandise carried by the ship. This is taken for the duration of a voyage or for other purposes. It provides coverage against all risk including strike and war risk.
3. Freight insurance
The term Freight is used for the cost of transporting the goods. It may also be referred to the hire of a vessel. If the freight has been pre-paid, this is generally added in the value of the goods insured under the policy. A ship owner is entitled to it only when the goods safely arrive at the port of distinction. If the goods are destroyed or ship does not reach the destination, the shipping company would lose the income.