Marine Insurance is a contract between an insurance company and insurer whereby the insurer agrees to indemnify the insured in a manner, thereby agreed, against the marine losses. A marine insurance plays an imperative role by covering you against loss or damage of cargo, ships and through any other transport, including inland transit. The insurance policy comes loaded with the following features:
Insurable interest: In order to claim for a claim for a loss or damages, the insured must have a financial interest in the insured property, a person is said to have an insurable interest in the property insured when he suffers a loss if the property is lost or damaged.
Utmost good faith: The insurance contract is based on the principle of utmost good faith. It means, every person who enters into an agreement of insurance has a legal obligation to act with honesty towards the insurance company. It means, a person should always be truthful and accurate while giving information to the insurer. Also, the insurance company is expected to act in good faith while dealing with its policyholders.
It comes with warranty: In a marine insurance policy, a warranty is like a significant undertaking between the policyholder and the insurance company. Here, a warranty means that the matter (voyage) is being conducted properly. It also says that no object, condition or content attached to the marine insurance policy is illegal.
It is that by which the assured undertakes the responsibilities that there are some particular things which shall or shall not be done. It means, these are such statements according to which the policyholder promises to do or not to do certain things are to fulfill or not to fulfill certain conditions. These are more stringently detailed because the insurance contract can come to end in case a warranty is broken, even if the warranty was material.
It comes with the principle of subrogation: The aim of this is that the policyholder should not get more than the actual loss or damage. While settling the claim, the insurer has all rights to reduce the sum received by the insured from the third-party.
Doctrine of indemnity: Marine insurance is an indemnity policy under which the insurer agrees to compensate for loss or damage in consideration of the timely payment of premiums.
Proximate cause: It is a key principle of insurance and is mainly concerned with how the loss or damages happened and whether they happened due to an insured peril. The insurer will be liable to compensate for any loss or damage proximately caused by insured perils.
Credit: The work prepared by scholastica mtutuma contributor of legusc and student at Moshi cooperative university (Mocu)
REFERENCES
1. Lecture notes shared by insurance lecturer to llb student at moshi cooperative university.
2 www.hg.org/insurance.html
Credit: The work prepared by scholastica mtutuma contributor of legusc and student at Moshi cooperative university (Mocu)
REFERENCES
1. Lecture notes shared by insurance lecturer to llb student at moshi cooperative university.
2 www.hg.org/insurance.html
