marine insurance

As a student of international commercial law I have a great interest on the subject of marine insurance. This is subject which is also related with international commercial law and I think all should know about what marine insurance and the history of marine insurance. Marine insurance is underwritten in England by the London market, consisting of Lloyd’s and the London insurance company which offer marine policy and by mutual insurance associations.

Now the important matter related to marine insurance is the definition of marine insurance. According to s.1 of the Marine Insurance Act 1906 marine insurance is a contract where by the insurer undertakes to indemnify the assured in manner and to the extent agreed against marine losses that is to say the  losses incident to marine adventure. The fundamental nature of marine insurance is the modern law is its characteristics as a contract of    indemnity. Insurance is not permitted to function as pure financial speculation on he continued safety of the insured property. Marine insurance is concerned with mitigating the adverse consequences of accidents it is not a financial instrument the replacement of the defunct or obsolete plant and machinery nor it is an investment which can be cashed in by the assured at his discretion. Most forms of marine insurance contract provide cover against specified perils but even all risks cover requires the assured to prove a loss by a casually compatible with the nature of insurance. Also s.3 (2) of the Act there are three instances first a marine instance adventure exists where a any ship goods or other moveable are exposed to maritime perils. Such property is called insurable property. Secondly there is a marine adventure where the earning of any freight passage money, commission, profit or other benefit.

Thirdly any liability may incurred by the owner of insurable property by the reason of maritime perils.

At last it can be said that marine insurance means where insurer undertakes any losses. Also marine insurance is governed by Marine Insurance Act 1906.

Information: HOWARD BENNETT, THE LAW OF MARINE INSURANCE: OXFORD UNIVERSITY PRESS, PAGE NO 1-12