Based on specific requirements of the industry, the marine insurance policy is standardized under the following categories:
Cargo Insurance:
Exclusively cargo insurance covers the cargo on the ship. It also covers the risk of damage to objects owned by the voyagers of the ship.
Time Policy:
This is marine insurance cover for a limited period.
Valued Policy:
This is a marine insurance cover provided for a pre-determined value. In the case of any mishap, your insurance policy will only reimburse subject to the fixed value.
Hull Insurance:
The marine hull insurance covers the torso and hull of the vessel. Also covered is the risk of damage to various articles and furniture on the ship. It is insurance against the value of ship loss.
Liability Insurance (part of Hull Insurance):
In this case, calculating the marine Insurance compensation is based on the total liability of the insured. For instance, if there is a ship accident or collision, on the part of the insured linked to the risk of such an accident, your insurer needs to cover it, whatever the liability.
Additional Read: What are the various clauses of marine insurance policies?
Mixed Policy:
A mix of time and voyage policy.
Unvalued Policy:
Unlike a valued policy, in this type of marine insurance policy, the exact insurance amount is calculated by inspecting the extent of the damage. Assessed the exact damage loss after the accident.
Port Risk Policy:
Covering a risk when the ship is stationed at the port.
Floating Policy or Open Policy:
Open or Floating marine insurance policy covers several shipments under a single policy. A fixed sum is determined to cover multiple shipments, and the details of any shipments are only declared afterwards.
Fleet Policy:
Covers several ships belonging to a single owner under one policy.
Block Policy:
This insurance covers the cargo for every risk of land and water. The policy covers the cargo on Door to Door basis; i.e. from the pickup point of the seller to the drop-off point for the buyer, even if it includes land transport in between or at either end.
Single Vessel Policy:
Covers only one vessel under this type on the marine insurance policy.
Named Policy:
In this type of marine insurance coverage, ships cover under its name. Likewise, mentioned the name of the ship in the insurance document.
Blanket Policy:
Pays the maximum protection amount at the time of buying the policy. Therefore, adjusting the amount after paying the compensation.
Composite Policy:
This policy grants a fixed sum to each owner of the policy. Thus, one insurance policy has multiple owners, and their obligation is classified legally.
Additional Read: How does warranty work in marine insurance?
Case on Marine Policy
Raman Exports Pvt. Ltd. is involved in the export of goods to European and Latin American Countries. Its estimated annual turnover is Rs. 500 cr. and thus based on this figure Raman Exports uses an Annual Turnover Policy for safeguarding its interests. He has to bother about the policy document only once a year. However, the insurer uses its quarterly sales figures for forecasting the cover for the next quarter.
Shivalik Containers & Shipping Ltd. is a firm involved in packing and shipping operations. Also, they provide packing material and services for the exporters along with the shipment. Therefore, Shivalik Ltd. uses Marine Hull and Liability insurance policies to safeguard against any damages to the ship, loss of cargo, or employee injuries.
Parvati Diamond & Jewells Pvt. Ltd. is buying a dozen diamond cutting machinery from a German manufacturer. The firm’s workshop is based in Surat. Since this is the first time the company will be importing the machinery, the owners have requested a block policy cover for the shipment, which will cover the goods until it reaches their workshop.
