FEATURES OF MARINE INSURANCE
Before discussing the essential elements of marine insurance, we have to know about marine insurance. A contract of marine insurance is such a contract, by which the insurer undertakes the risk as agreed provide financial support against marine losses. Therefore, we can say that a contract of marine insurance extent thereby agreed against marine wastes. That is to tell the wastes incident to marine adventure.
There are some essential elements of marine insurance. Moreover, Marine insurance is a legal contract. For that without general elements, there are some essential elements of marine insurance.
- Features of General Contract,
- Insurable Interest,
- Utmost Good Faith,
- The doctrine of Indemnity,
- Proximate cause
- Proportionate contribution
- The subject matter of insurance
- Features of general contract: In a marine insurance contract, there are all elements of the general insurance contract. Cause as an arrangement contract it a general contract. Which kinds of contract are including in general contract:
(a)Two parties: In a contract of marine insurance, there are two parties. One party is an insurance company and another party is an insurance holder.
(b)Offer and acceptance: Like a general contract, an insurance holder offered to the insurance company to accept his policy. If a policy is accepted then the contract is accomplished.
(c)Legal Consideration: As a natural contract, the insurer makes a confirmation to insurance holder for deducing risk by money. It is given from insurer to insurance holder.
(d)The capacity of contract: Both parties should stay capacity of contract.
(e)Legal object: The contract should be a legal contract.
(f)Green consent: Both parties have to give consent to freedom.
(g)Certainty: Insurance subject should be a certainty.
(h)Written: Contract must be written.
2. Insurable interest: The insurable interest is the pecuniary interest where the policyholder is benefited by the existence of the subject matter and is prejudiced by the death or damage of the subject matter.
3.Utmost good faith: As the underwriter knows nothing and the man who comes to him to ask to insure knows underwriter without being asked of all the material circumstances, this is expressed saying it is a contract of utmost good faith.
4. Doctrine of Indemnity: Insurance is a contract of indemnity under which insurance company agrees to pay a certain sum of money to compensate loss caused the occurrence of an uncertain event in consideration of certain periodical payment premium.
5. Proximate cause: Some kinds of peril are caused by happened waste that is called proximate.
6. Proportionate contribution: If any waste has happened which did not count overall, its peril fulfills by proportionately.
7. Subject matter of insurance: In marine insurance way of ships, ships product, ships rent, etc. is known as a marine insurance subject matter or insurance.
8. Period: There are two kinds of marine insurance policy. one of specific sea journey base and another one is time base.
9. Warranties: There are some conditions in marine insurance contract such as,
I. ships neutrality
II. Journeys time
III. Safety time
IV. Properties neutrality
V. Ability to ships journey
VI. Legality of sea journeys
VII. No late journey
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So, these are the essential elements of marine insurance that are part of legal marine insurance. An ideal marine insurance contract should be followed by these elements or must have these elements.