9 Elements of Marine insurance Contract

Marine insurance has been defined as a contract between the insurer and ensured whereby the insurer undertakes to compensate the ensured in a manner and to the interest thereby agreed, against marine losses incident to marine adventure.

Housing insurance, Cargo Insurance, Freights Insurance and Liability Insurance are the subject matter of Marine Insurance.

Elements of Marine Insurance Contract

The marine insurance has the following essential features which are also called abecedarian principles of marine insurance;

1. Features of General Contract,
2. Insurable Interest,
3. Utmost Good Faith,
4. The doctrine of Indemnity,
5. Subrogation,
6. Warranties,
7. Proximate cause,
8. Assignment and nomination of the policy, and
9. Return of premium.

The proposer may approach the insurer directly or through an agent or broker.

Generally, the offer is made through brokers because they're well known of the insurance practices. The broker prepares a slip where material information is recorded.

This slip is presented to the insurer who'll signify his acceptance by initialing the slip and indicating the sum they're set to- accept. The threat may commence from the date of acceptance or from at any other date which is mutually agreed.

Occasionally, the insurer asks fresh information from the broker.

When the fresh information called ending slip has been accepted by the insurer he may issue a policy.

Before issuing the policy, the open cover is issued to the ensured, which becomes inoperative as soon as the policy is issued. The document containing the term of the contract is called policy.

The assured can not fairly make any claim over the coach if the loss occurs before a final policy is issued. The ‘ open cover ’ or ‘ slip ’ isn't fairly binding on the insurers.

In practice, still, the insurer pays the number of claims indeed before the issue of programs. Insurers in marine insurance generally called ‘ backers ’.