Marine Insurance

Importance Of Marine Insurance

Importance Of Marine Insurance
In the commercial age of today marine insurance has become most important insurance in the field of insurance. The importance of marine insurance is describe below in detail.

1. Importance Of Marine Insurance For The Individual

A person has to import goods from another country which is located on the other side of sea for his business. While carrying goods from other side of sea businessman may have to face dacoits or goods may be damaged because of sinking of ship into the water. So businessman has to experience economic loss. By the result of loss person may be discouraged to engage in business. But when one insures his/her property in marine insurance does not have to face with economic problem because marine insurance provides compensation to the insured against the loss of property.

2. Importance Of marine Insurance For Shipowner

Expensive ship may be destroyed due to different types of risks on the marine venture. Shipowner may have to experience with larger amounts of loss due to the destruction of the ship. Marine insurance provides compensation of loss to the shipowner . So, marine insurance is important insurance for shipowner.

3. Importance Of Marine Insurance For Freight

Freight insurance is also included under the marine insurance. Freight refers to the revenue that a cargo ship earns or the money which is paid to the shipowner for transportation of goods from one part to another. If businessman does not pay freight of his goods to the shipowner, shipowner may have to experience economic loss. If such types of loss occurs insurance company indemnifies the shipowner to marine insurance. So marine insurance is very important for the freight.

4. Importance Of Marine Insurance For Cargo Owner

A businessman wants to be secured for his goods. Especially countries which are located on the other side of sea , businessman may have to use marine venture. Marine insurance keeps them away from worry and fear or all responsibility of cargo owner is transferred to the hand of insurance company that provides compensation to the cargo owner if loss occurs.

5. Importance Of Marine Insurance For The Government

International trade has been increased due to the marine insurance. As international trade increases government also can receive economic profit. Government increases revenue by including extra income tax. So marine insurance is important for the government also.