Marine Insurance is concerned with overseas trade.
International trade involves transportation of goods from one country to
another country by ships. There are many dangers during the shipment.
The persons who are importing the goods will like to
ensure the safe arrival of their goods. The shipping company wants the safety
of the ship. Therefore marine insurance is concerned with the coverage of all
types of risks which occur during the journey.
Marine insurance may be called a contract whereby the
insurer undertakes to indemnify the insured in a manner and to the extent
thereby agreed upon against marine losses.
Marine Insurance has two branches:
- Ocean Marine Insurance.
- Inland Marine Insurance.
Ocean marine insurance covers the perils of the sea
whereas inland marine insurance is related to the inland risks on the land.
Marine Insurance is the earliest or oldest and most
important form of insurance, an ancient concept of maritime law. It has
developed with the expansion of trade.
It was started during the middle ages in Italy and
then in England. The sending of goods by the sea involves many perils; so it
was necessary to get the goods insured. In modern times marine insurance
business is well organized sector technically carried out.
Insurance policies covering ships and cargo are known
as maritime insurance policies. Underwriters assess the risks involved and
charge fees, known as premiums that the insured party must pay for insurance
coverage that the underwriters provide.
Underwriters list the risks that they are prepared to
cover for any given policy, such as the loss of a ship or its cargo due to
adverse weather conditions at sea, in a maritime insurance contract.
Isaac Aikoroje
Ag. Rector
Global Maritime Academy, Nigeria
