What is Marine Insurance?
Marine insurance is an indemnity contract in which the insurance provider covers the losses of ships, cargo, and other vehicles used to transport, acquire, or store goods between points of origin and final destination. In other words, marine insurance provides the insured with protection against any loss caused due to marine perils or other perils of the sea. There are four types of marine insurance; namely, freight insurance, hull or ship insurance, and cargo insurance.
Difference between Life, Marine, and Fire Insurance
Individuals and property owners in the modern world use insurance as one of the most important safety nets. Insurance is essentially a bond that you sign with a bank or your insurance provider, in which the insurance provider promises to pay you a specific amount in the event of an emergency or if you are required to pay a large sum of money to someone. In exchange, you must pay a monthly premium to the banks, which is calculated based on your package and requirements. In this way, the respective banks earn money from all of the people who have signed up for the insurance scheme, and in exchange, they pay the amounts to those who need the insurance. Life, Marine, and Fire Insurance are three types of insurance used by individuals and property owners as their safety nets.