Page 157 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Personal Financial Planning

Notes Other merchandize and property assured, which is in the transit either on water or on land
or both.

Insurance of third-party liability.
Insurance of the transactions which are incidental to the marine adventure or marine
transport or transport of cargo from godown to the vessel.

Insurance also includes all perils and risks incidental to money, documents, securities, and
other valuable goods in the ship.
Other incidental activities concerned with building, launching of ship or transport of stores
concerned.

Kinds of Marine Insurance Policies

Though commonly in one form, Marine Policies are known by different names according to
their manner of execution and the nature of risks covered. The following are the various kinds
of marine insurance policies as contained in the Marine Insurance Act, 1963.
Voyage Policy
Time Policy
Voyage and Time Policy (or) Mixed Policy
Valued Policy
Unvalued Policy (or) Open Policy
Floating Policy
Wagering Policy (or) PPI Policy
Construction (or) Builders Risk Policy
Open Cover Policy
Port Risk Policy
1. Voyage Policy: As the name suggests this policy covers a voyage. This is a policy in which
the limits of the risks are determined by place of particular voyage. For example Chennai
to Singapore; Chennai to London. Such policies are always used for goods insurance,
sometimes for freight insurance, but only rarely nowadays for hull insurance.
2. Time Policy: This policy is designed to give cover for some specified period of time, say,
for example 1st Jan, 2003 to noon, 1st Jan, 2004. Time Policies are usual in the case of hull
insurance, though there may be cases where an owner prefers to insure his vessel for each
separate voyage under voyage policy.
3. Voyage and Time Policy or Mixed Policy: It is a combination of Voyage and Time Policy.
It is a policy, which covers the risk during a particular voyage for a specified period. For
example, a ship may be insured for voyages between Chennai to London for a period of
one year.
4. Valued Policy: This policy specifies the agreed value of the subject matter insured, which
is not necessarily the actual value. Such agreed value is referred to as the insured value. A
policy may be, say, for ` 10,000 on Hull and Machinery etc. valued at ` 2,00,000 or for
` 7,000 on 100 cases of whisky valued at ` 7,000. Once a value has been agreed, it cannot be
reopened unless there is proof of fraudulent intention. It remains binding on both the
parties. These policies are not common nowadays.
5. Unvalued Policy/Open Policy: In the case of an Unvalued Policy, the value of the subject
matter insured is not specified at the time of effecting insurance. It is taken for a specified

152 LOVELY PROFESSIONAL UNIVERSITY