What is Marine Insurance and discuss various principles of marine insurance

Definition of Marine Insurance :-
Templeman has defined the Marine Insurance in the following words ;
"A contract of indemnity whereby the insurer undertakes to compensate the insured against perils insured."

This policy is generally taken to obtain protection against the sea perils. Today marine insurance has played very effective role in promoting the international trade. Marine insurance covers almost all losses to the ship and Cargo while in sea or port. In each marine insurance contract insurance company undertakes to give coverage against loss due to marine perils on the payment of premium. The terms and conditions are written in a document which is called Marine insurance Policy.

Principles or Essentials of Marine Insurance

1. Utmost Good Faith :-
The contract of marine insurance depends upon the principle of utmost good faith. The insured should disclose all the facts about the goods. If the conceals any thing then contract becomes invalid.

2. Contract of Indemnity :-
Marine insurance is contract of indemnity. The insured can not claims unless he suffers a loss.

3. Insurable Interest :-
In the property, insured must have insurable interest. It must be present at the time of loss. For example, owner of the ship has insurable interest on the ship.

4. Good Paring :-
The Cargo must be packed properly and it should be in sound condition.

5. Proper Route :-
The ship must adopt the proper route which is specified in the policy. If a ship do dot adopts the proper route it is called deviation. It is only allowed in case of unfavorable conditions.

6. Legality of Voyage :-
The object of voyage must be lawful. For example a policy to cover the risk of smuggling is invalid.

7. Good Condition of Ship :-
The ship must be in a good condition and may be able to face the ordinary sea perils.

8. Competent Parties :-
The parties must be competent to make contract and contract should also be supported by a valuable consideration.