Marine insurance in general covers the damage or the loss of ships .
terminals , cargo .
the marine policy only covers three quarters of liabilities of the
insured side towards the third parties .
Actual Total Loss and Constructive Total Loss used to differentiate the
degree of proof where a vessel or cargo has been lost.
Actual Total Loss is the situation where the position is clear while
Constructive Total Loss is the situation where a loss is inferred. In
practice, a Constructive Total Loss can be used to describe a loss where
the cost of repair is not economic
There is various types of specialist policies for the marine insurance
Newbuilding risks : covers the damage risks to the hull whilst it is
Yacht Insurance: Insurance of pleasure craft is known as 'yacht
insurance' and includes liability coverage. Smaller vessels, like yachts
and fishing vessels and other vessels ,
War risks : Usual Hull insurance does not cover the risks of a vessel
sailing into a war zone. A typical example is the risk to a tanker
sailing in the Persian Gulf during the Gulf War. War risks cover
protects, at an additional premium, against the danger of loss in a war
zone. The war risks areas are established by the London-based Joint War
Committee, which has recently moved to include the Malacca Straits as a
war risks area due to piracy .
Increased Value (IV) :this type of policies protects the shipowner
against any difference between the insured value of the vessel and the
market value of the vessel.
Overdue insurance: This is a form of insurance now largely obsolete due
to advances in communications. It was an early form of reinsurance and
was bought by an insurer when a ship was late at arriving at her
destination port and there was a risk that she might have been lost
(but, equally, might simply have been delayed). The overdue insurance of
the Titanic was famously underwritten on the doorstep of Lloyd's.
Cargo insurance : Cargo insurance is underwritten on the Institute Cargo
Clauses, with coverage on an A, B, or C basis, A having the widest cover
and C the most restricted. Valuable cargo is known as specie.