Marine Insurance

Marine Insurance is an insurance contract between two parties to cover the losses arising out of damages or any other incidents of cargoes, ships, terminals or any other form of transport through which the articles are transferred by using marine routes. There are so many branches and areas of marine insurance. Cargo insurance is one of the most important branches of the marine insurance. In the marine insurance contract under various laws across the world there are two parties like all the other forms of insurance involved in the marine insurance contract. These two parties are the insurer and the owner of insured items or articles. This insurance is entered upon between two parties for the compensation in case of any losses arising out of any unfavorable events according to the insurance terms agreed upon between the two parties. In the concept of marine insurance, the concept of utmost good faith is very important factor when entering into this contract of insurance. It is imperative for both the parties that they maintain utmost good faith in each other and put proper efforts to maintain the good faith.
Utmost good faith in legal term is called Uberrima fides . It is Latin word. This Latin phrase Uberrima fides means utmost good faith. This doctrine legally governs any insurance contract entered between two parties. Under this doctrine of good faith, both the parties have to ensure that good faith is always maintained. Both the parties are liable to for making full declarations regarding all the material facts and information in the insurance proposal. Unlike the doctrine of the caveat emptor, the doctrine of Uberrima fides makes it legally binding on both the parties to disclose all the relevant facts to each other when entering into the marine insurance contract.
Contract is an agreement that is entered into by two or more parties under the agreed terms and conditions. This agreed agreement that is called contract and is enforceable by the law of the land. But while entering into any contract it is imperative that both parties give free consent. There should not be any pressure to accept the contract. In case of absence of free consent the contract is said to be void. No party after entering into the contract with free consent can disagree to discharge the rights and obligations. Same is true with the marine insurance. In case of marine insurance, both parties have some obligations and both the parties to discharge this obligation in all cases. The insured pays a premium for entering in to the contract with the insurer while insurer promise to compensate for the losses under the agreed terms and conditions. No party can refuse to discharge their obligations.
Parties are concerned people or firms that have agreed on the agreement and have signed on the contract. These people or firms have interest in the insurance contract and there are said to be beneficiaries of the contract. In a simple contract there may be more two or more people of firms involved in the contract but in case of the marine insurance there are just two parties that are involved into this contract of insurance.

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