Types of Marine Insurance Policies
The following are various types of marine insurance policies.
1. Voyage Policy: In this case the subject matter is insured for a particular voyage. Ex.: a voyage policy from Bombay port to Hongkong port.
2. Time Policy: In this case the subject matter is insured for a particular period not exceeding twelve months. Ex., a time policy from 1st January, 2016 to 31st July, 2016.
3. Valued Policy: In this case, the agreed value of the subject matter is insured. In the event of loss the Insurer pays only for the loss not exceeding the value mentioned in the policy.
4. Open or Unvalued Policy: In this case the value of the subject matter is not specified. It will be ascertained at the time of actual loss.
5. Mixed Policy: In this case the subject matter is insured for a particular period and for a certain voyage. Ex. Mixed Policy may be taken covering the voyage from Bombay to Hongkong not exceeding 30 days.
6. Floating Policy: In this case the policy is taken for a sum to cover several shipments. The name of the ship and particulars of shipments are declared afterwards; This policy is also known as ‘Open Policy‘. This type of policy cannot be issued for immovable property.
7. Wager or Honour Policy: In this case the subject matter is insured without the assured having any insurable interest and hence the policy is void. It resembles a wagering contract. Losses are indemnified depending upon the honour of the Insurer. Hence it is also known as ‘Honour Policy‘.
8. Fleet Policy: It is the policy under which several ships belonging to one owner are insured under the same policy.
9. Block Policy: In some case, the businessmen may be interested in insuring the risks of land and sea. A single policy covering all the risks of rail, road, and sea transport is known as block policy.
10. Port Policy: Generally owners of the ships take this policy. It covers the risk of the ship when it is in a port during a specified period.
11. Single Vessel Policy: This policy covers the risk of one vessel of the insured.
12. Named or Specific Policy: This policy contains the name of the ship by which the shipment is made and the policy covers risk of that particular ship.
13. Port Risk Policy: It covers risks associated with loss when the ship is anchored in a port.
14. Currency Policy: It is a policy issued in foreign currency. For e.g. if a policy issued for an Indian ship is in terms of dollars, it is known as currency policy.
15. Blanket Policy: It is a policy which is issued for an amount of maximum protection. The entire amount of premium is collected at the time of grant of policy and is readjusted at the end of the term of the policy in accordance with the actual amount at risk during the term.