Marine Insurance Essay Example | Topics and Well Written Essays - 1500 words - 1

Marine Insurance - Essay Example The varied factors of floating policy along with marine open cover policy have been discussed with its conditions and aspects along with their roles in marine insurance. The discussion has provided an understanding that the marine insurance policy can be an extremely valuable component for the manufacturing organization in order to mitigate the risks of damage and loss during transaction of materials through the seas. Marine insurance is considered as a contract of insurance policies that cover up the losses or the damages for a person or a business entity that occurred during the transportation of the cargos or ships through the seas. Moreover, the marine insurance is a contract wherewith the insurer takes on to underwrite the assured with regard to various types of marine losses during acquired or transferred cargos or goods. The Marine Insurance Act 1906 (MIA), conveys certain consistency and uniformity that assures to be accomplished with the appropriate underwriting policies of the losses during the transportation of cargos or ships (Sitigorn n.d.). The â€Å"Floating Policy† is one of the major components that had been formulated under the MIA section 21. The floating policy possesses effective assurance of the goods and insured risks during the deliverance of the transported goods or cargos. The floating policy has been initiated comparatively at a large amount by the regular goods of the suppliers. The policy covers several shipments that are stated subsequently with other details. The floating policy is highly favorable for the exporters to avoid problems of issuing out another policy during every shipment (Insurance 2Day 2012). The floating policy within the MIA 1906 Act 29 depicts the insurance facilities in general terms. The policy makes use of the ship(s) name along with other particulars classified through succeeding statement in order to transport the cargos through the seas. The declaration may be formulated with