What is a Marine Insurance Policy?
Marine Insurance as per the Marine Insurance Act of 1906 is defined as “A Contract of Marine Insurance is a contract whereby the Insurer undertakes to indemnify the Assured, in manner and to the extent thereby agreed, against marine losses, that is to say, the losses incident to marine adventure.”
The Act further states, “A contract of Marine Insurance may, by its express terms, or by usage of trade, be extended so as to protect the Assured against losses on inland waters or on any land risk which may be incidental to any sea voyage.”
Thus, a Marine Insurance Policy is an insurance policy which reimburses the Insured Party for the damage to the Insured Cargo whilst in transit. The definition of Marine Insurance as per the Marine Insurance Act, 1906 makes it clear that that the Insurance Policy covers transits by sea, air or waterways before or after the sea voyage, as long as these transits are incidental to the main sea voyage.