Critical Analysis of Marine Insurance Policy in India

ABSTRACT

Marine insurance refers to the contract of indemnity which covers the loss/damage of ships, cargo, terminals, and includes any other means of transport by which goods are transferred, acquired, or held between the points of origin and the final destination. In the era of globalization, maritime transport plays a very crucial role in fostering trade and commerce. The transportation of high value goods through sea serves as one of the cost- effective modes of transportation. It is the backbone of international trade with most of the world merchandise trade by volume being carried by sea. In this context the maritime insurance becomes a significant component of international trade and commerce as it helps in mitigating risks associated with financial loss to the ship, goods or other movables in maritime transportation. In India Maritime Insurance is governed by the Marine Insurance Act, 1963. With the growth of industrialization and the liberalization of international trade, overseas exports and imports have increased and the shipping of goods by sea, river or other waterways has also increased. This has tended to raise the risk involved in maritime transport. Marine insurance provides a solution to the danger inherent with marine transport. Thus this paper focuses on the evolution and historical background of marine insurance and legislative approach of it.

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