Marine Insurance

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Barratry is the legal term describing severe or willful misconduct by the captain or crew of the ship that would include loss or damage to the ship or cargo. Marine insurance plays a crucial role in protecting you against the risk of damage or loss to the cargo or ships by which the goods are transferred, acquired or held between the points of origin and final destination. Availing of the best marine insurance policy for the business helps to mitigate the financial pitfall that can happen due to loss or damage of goods in transit. On the other hand, Maritime law (also known as Admiralty law) is the concerned body of laws, conventions and treaties that govern maritime business and other nautical matters, such as the offenses occurring in the open water.

Know About the Marine Perils in Marine Insurance

Maritime Perils or ‘Perils of the Sea’ means the perils consequent on, or incidental to the navigation of the Sea. These perils are:-

  • Perils of Sea
  • Fire
  • Man-of-war
  • Jettison
  • Enemies
  • Pirates, Rovers, Thieves
  • Barratry
  • Explosion
  • Restrainments and Detainments
  • Strikes, Riots, and Civil Commotion Clause
  • All the Other Perils

What is Barratry in Marine Insurance & Maritime Law

Barratry is the fraudulent breach of duty by the captain or crew of the ship. It includes every breach of trust such as stealing or sinking or deserting the ship or stealing the components of the cargo.

What is Included in the Barratry

Barratry includes every wrongful act, which is willfully committed by the captain or crew. The act of barratry is committed without the knowledge of the owner. The act includes:-

  • The Theft
  • Setting fire to the ship
  • Fraudulent selling of the vessel or cargo without the willingness of the ship-owner

The above examples are some of the instances that cover under the barratry. If the marine insurer policy covers barratry peril, then they are liable for losses arising out of the barratry.

What is the Difference Between Theft and Barratry

Theft is a person who is guilty of stealing someone’s money or property belonging to the other with the intention of permanently depriving it. On the other hand, Barratry in marine insurance is considered a qualified form of theft. This means it is considered more serious and therefore it is punishable and warrants sentencing enhancements over other types of theft.

Kinds of Barratry

Generally, barratry is grouped into five types:-

  1. The shipmaster flees with the cargo
  2. Contraband (if changing destination, selling the ship and disappearing from the creditor’s reach)
  3. Change of voyage
  4. The fraudulent sinking of the vessel
  5. Lack of defense of the vessel

Summing Up!

Marine insurance is important for businesses that generally deal with overseas or international boundaries. We, SecureNow, provide end-to-end insurance solutions to clients, which include the right transit insurance online plan in place, provide the best insurance quotations, and then support at the time of claims. With our wide market experience, we have settled more than 1000 insurance claims. We have specialist professionals who know the ins and outs of the insurance industry. We provide a vast personal experience as compared to the other insurance companies. Get in touch to know more!

About The Author


MBA Insurance and Risk

With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.