Maritime finance and insurance

Marine Insurance Market

Background and overview of Marine Insurance Market

Marine insurance is one of the oldest forms of insurance dating back to the twelfth century . Trading in olden days was mostly through the sea routes and traders faced heavy losses at sea occasionally . Loss of goods and investment were a matter of great concern among the sea-faring traders . European countries like United Kingdom , Greece and Rome felt the need for insuring the ships and cargoes against such eventualities and losses

Marine insurance market developed over the years with various forms

of undercoming forward to underwrite vessels , cargoes and investment in machinery etc . In England the Lloyds became a prominent insurance market congregating insuring agencies and underfor the marine sector . Britain being a sea-faring nation with plenty of traders transacting offshore had huge demand for marine insurance services and gradually the market developed and matured over the years

Marine insurance policies are one of the oldest policies written owing to its early origins . The first marine insurance contract dates back to the 14th century . This policy covers maritime perils ' that includes any case of eventuality in the sea like sinking , stranding , collision fire , pirates , or washing overboard . These policies state the terms and conditions that should be agreed upon between the underwriter and the trader . The Marine Insurance Act (1906 ) states a contract of marine insurance is a contract whereby the insurer undertakes to indemnify the assured , in manner and to the extent thereby by agreed , against marine...