5 Laws Anyone Working in Marine Insurance Companies Should Know

Marine Insurance

5 Laws Anyone Working in Marine Insurance Companies Should Know    10th April 2020

Maritime transport is one of the most efficient ways to transport goods overseas. Maritime transport has been used since 2500 BC. When Egyptians started building wooden boats that were used to transport people and cargo along the Nile river. Since then, technology has progressed by leaps and bounds. Now, there are colossal metal ships that can carry tonnes of cargo overseas. The scientific progress in the maritime industry has allowed mass trade to take place between countries. It also allows people to purchase cars and machinery from overseas markets. Maritime transportation has made the world a more connected and smaller place. It goes to prove that there is nothing humans cannot accomplish once they set their collective minds to it.

To put countries and businessmen at ease, cargo ships must be insured. Marine insurance companies insure ships with their marine cargo insurance policy . There are several aspects to this policy. As a person working for a Marne insurance company, you must be well-versed in laws related to it. Here are five laws that anyone working in Marine insurance companies should know about: -

  • A marine cargo insurance policy provides coverage for cargo and personal belongings of passengers on the ship. Cargo that is being transported is liable to be lost or damaged through one or many different perils from the time it leaves the supplier's warehouse until it is received by the consignee's warehouse. Loss or damages suffered due to various risks are to be transferred to an insurer, as they are included in their coverage.
  • A marine insurance contract is a contract of utmost good faith. The agreement may be deemed void if utmost good faith is not observed by either of the parties. It is the responsibility of the assured to disclose every material circumstance to the insurer, which is known to the assured. Similarly, the agent must disclose every material circumstance to the assured, which is known to the agent. It is also important to note that the duty of the disclosure is not over after the conclusion of the contract and will continue.
  • If a loss occurs, the insured must be in the position of a financial loss. In a contract, the assured must have an interest in the subject that is insured when the loss occurs. The assured must benefit from the safe arrival of the insured property or may have the liability of its loss.
  • The insurer takes the responsibility to indemnify the insured for the loss suffered by the insured. The loss suffered must have been caused due to occurring of the event they are insured against. The insured is to be placed in a similar situation that would have been as if the loss had not occurred.
  • The insurer has a right to take it upon themselves to substitute the insured to claim indemnity from a third party for the losses covered by the insurance. Thus, the insurer is entitled to recover the loss payments made to the insured from the negligent third party.
  • These laws are very important for anyone working in a

    Marine insurance

    company. These laws serve as the principles on which maritime insurance policies are built upon. It is crucial to keep them in mind while making the maritime cargo insurance policy.