Insurance Against Contract in International Trade(Marine Insurance)

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“Insurance against Contract in International Trade” (Marine Insurance) Introduction: Insurance against perils is an important aspect of international commercial transactions. In the event of loss or damage to cargo due to hazards during voyage, an insured party will be able to recover losses from the insurer. This is where marine insurance comes into play. 'Marine insurance' is thus the term used to described the insurance taken out to cover the risks involved in all forms of transportation, for example, sea, road, rail and air, from the point where the goods are loaded onto their first form of transport until they arrive at their final destination. There is no uniform law or convention for international marine insurance. However commercial customs, usage and practices in international marine insurance have played a significant role in regulating marine insurance internationally. Thus the marine insurance contract is subject to both general principles of contract law and relevant domestic marine insurance law. Definition of a Contract of Marine Insurance: Marine Insurance is that branch of insurance that deals with the coverage of losses or damanges that might befall sea and ocean going vessels, the cargo loaded on board, and also the related infrastructure involved in trade by sea. A contract of marine insurance is a contract whereby the insurer or underwriter (the marine insurance company) undertakes to indemnify the assured (the policy holder) in the manner and to the extent thereby agreed against Marine Losses incidental to marine adventure. It is a contract of indemnity. The insurer undertakes to indemnify the assured against financial loss or expenses incurred resulting from any of the risks and hazards which are defined in the policy document. The insurer will define his liability in such a manner that he does not become responsible for loss or damage

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