In relation to marine insurance: Outline any four types of marine insurance policies
Four types of marine insurance policies
The major types of marine insurance policies are:
- Time policy: A time policy is taken for definite period of time, usually not exceeding 12 months say from January 1, 1981 to December 31, 1981. This policy is most suitable for hull insurance.
- Voyage policy:Where the subject matter is insured for a specific voyage.
- Mixed policy: This policy is the combination of time and voyage policy. It, therefore, covers the risks for both particular voyage and for a stated period of time.
- Floating policy: Floating policy is taken for a relatively large sum by the regular suppliers of goods. It covers several shipments which are declared afterwards along with other particulars. This policy is most situated to exporter in order to avoid trouble of taking out a separate policy for every shipment.
- Valued policy: Under its terms the agreed value of the subject matter of insurance is mentioned in the policy itself. In case of cargo this value means the cost of goods plus freight and shipping charges plus 10% to 15% margin for anticipated profit. The said value may be more than the actual value of goods.