A lot of people assume that marine insurance only refers to cover for goods on ships and sea going vessels.
If you are a cargo owner, you are at risk of mishandling the cargo at any stage, i.
Despite the rather peculiar name, this is actually a very useful type of insurance, and it is commonly recommended to business owners, especially people who need to travel for work or people who work with.
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In india, marine insurance act, 1963, regulates various aspects of marine insurance.
Warranties in marine insurance
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Aquatic insurance is all-important to every player in the planetary of commercial merchant marine, as trading crossways the high seas is a identical high risk enterprise.
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Conditions and warranties are 2 significant types of contractual stipulations which basically create rights and obligations.
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Insurable interest in marine insurance
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Despite what the epithet implies, marine indemnity applies to complete modes.
The importance of marine cargo indemnity can be ascribed in two better factors.
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It is essential that you know what each type of insurance covers and how it deeds so you hindquarters make the advisable decision about what to buy.
Marine indemnity is a character of insurance that covers boats and ships, as advisable as their freight and in both instances the places where the gravy holder or ship is docked.
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How are marine insurance contracts like other contracts?
The marine insurance contracts are just like the other contracts and they follow the procedure of ‘offer' and ‘acceptance'. Due to the characteristics of the insurance market, the marine insurance contracts have a higher degree of credit, particularly that both the party should perform the ‘duty of utmost good faith'.
How is marine insurance based on utmost good faith?
The marine insurance is based on an important principle that is ‘Utmost Good Faith' which is the crown field in this law. It is the responsibility of the ship-owner or the cargo owner to an insurance contract makes statement of facts, expectations, belief to the insurer before or at the time of the contract being made.
What happens if you fail to disclose marine insurance?
The failure to do so make the contract void able at the option of the insurance company, which means the contact is rescinded. Section 17 to 20 of the Marine Insurance Act 1906 provides two leading aspects of ‘utmost good faith’ that is the duty of disclosure and not to make misrepresentation pending negotiation of contract.
What are the material facts of marine insurance?
The representation which are made are the material facts which is nothing but the every material circumstances which is known to the assured, and the assured is deemed to know every circumstance which in the ordinary course of business, ought to be known by him. If the assured fails to make such disclosure the insurer may avoid the contract.
Last Update: Oct 2021
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