Page 295 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes 14.2 Contents of a Marine Policy

A marine policy will contain the following particulars:
1. Name of Insured

2. Policy Number
3. Sum Assured
4. The subject matter insured and the perils covered
5. Place where claims are payable
6. Premium

7. Steamer (or) Other Conveyance
8. Stamp Duty
9. Voyage or Journey

10. Number or date of bill of lading or Registered Post or Air Freight Receipt (as the case may
be)
11. Place of issue of policy and date

12. Signature of the authorized person signing on behalf of the insurers.
Every marine policy must be stamped in accordance with provisions of the Indian Stamp Act,
1899.

14.3 Essential Elements or Principles of Marine Insurance

The marine insurance has the following essential features, which are also called fundamental
principles of Marine Insurance.

Features of a General Contract

A marine insurance policy must fulfil all the essentials of a valid contract, namely offer, acceptance,
agreement, lawful consideration, competent parties, free consent, and legal object. Here the
proposal may be offered by a ship owner or a cargo owner or a freight receiver. When the
insurer accepts the proposal, it becomes an agreement. The insurer is known as "Underwriter"
and person taking insurance cover is called insured. The premium is determined on the basis of
risk covered and is paid at the time of signing the contract.

Insurable Interest

It is not necessary that the insurable interest must exist at the time of affecting the insurance. The
insured must have an insurable interest in the subject matter insured at the time when the loss
actually occurs. According to Marine Insurance Act 1963, "every person has an insurable interest
who is interested in a marine adventure".

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