Various policies and their salient clauses and warranties.

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1) Voyage policy
A voyage policy is a kind of marine insurance policy which is valid for a particular voyage. It covers the risks from the port of departure to the port of destination. The insurance company  should give  indemnityfor loss or damage of any property of the insured during the period of the voyage. This policy end when the ship reaches the port of arrival.
This type of policy is purchased generally for cargo. Under this policy “from” and ” to” has a great importance.

2) Time policy
The policy which is issued for a fixed period of time is known as time policy. A marine insurance policy is valid for a specified time period generally valid for a year although it may be for less than one year. But there is no restriction to make this type of policy for less than one year.
All the Marine perils are insured for that are insured for that period of time. This policy Mein cover while navigating the vessel or while under construction. This type of policy is commonly used for hull insurance commonly used for is commonly used for hull insurance commonly used for hull insurance than for cargo insurance.

3)Voyage and time policy
The joint form of voyage policy and time policy is called mixed policy. In this policy elements of voyage and time policy are combined. The referance is made of certain period after completion of the voyage. Generally this policy is used for ship insurance.

4) Valued policy
In this type of policy the value of the cargo and consignment is ascertained and mentioned in the document before hand thus making clear about the value of the compensation in case have to any loss of cargo and consignment.. Under this policy, the value of the policy is decided at the time of contract. Generally, the insured amount in this type of policy includes the price of cargo, ship, freight and approximate profit.

5) Open or un-valued policy
In this type of policy the value of the cargo and consignment is not fixed.The value is left to be decided later after loss takes place,the value is called insurable policy.

6) Floating policy
The floating policy is also called declaration policy. This policy is useful for the merchant who delivers cargo regularly.
Open cover:
->It is an agreement between the insurer and insured by which the insured declares and the insurer accepts all the shipments falling within the scope of open cover.
->It is not a legal contract of marine insurance,however the insurer and the insured are honor bound.
->To give open cover a legal form , floating policy is issued.All declaration are written on the back of the policy.
-> A classification clause is usually inserted to provide agreed rates of premium.
-> Valuation clauses is also inserted to provide the basis for valuation in the event of loss taking place.

7)Blanket policies
The policy is taken to cover the losses within a particular time and place.
Policy indemnity for are to certain amount and premium is paid on the whole of it at the beginning of the policy and re-adjusted at the end of policy according to actual amount at risk.

8) Named policy
Under this policy the name of the ship and the amount of insured cargo are mentioned.

9) Single vessel and fleet policy
A ship or a fleet of a ship is insured in a single policy.
One ship insured-single vessel policy,
fleet of ships insured-fleet insurance policy.
One advantage is that old and weak ships are also insured.

10)Block policies
This policy does not only protect from the risk of the marine perils but also covers the risks occurred on the land too. It takes the risk of transportation from the place of the seller to the place of the buyer.It is very useful policy for landlocked countries.

11) Currency policy
Policies issued in foreign currency is called currency policies,where the sum assured is stated in foreign currency.
Avoids fluctuation in foreign currencies because the claim amount is determined in the foreign currency.

12)Annual policy
->Insured for a period of 12 months to cover goods belonging to the insured.
->Policy is not transferrable.
Not allowed to be issued to transport operators/contractors, clearing and forwarding agents or to freight forwarders.
->Cannot be issued in joint names.

Other policies:
->Inland transit cargo policy
->Inland vessel policy
->Free onboard policy
->Sailing vessel policy
->Package policy


Warranties

Warranties are the statements according to which insured person promises to do or not to do a particular thing or to fulfill or not to fulfill a certain condition and it is not merely a condition but a statement of fact.
Warranties are more vigorously insisted upon then the conditions because the contract comes to an end if a warranty is broken whether the warranty was material or not.

Types of warranties:
1)Express warranty
This warranties are those warranties which are expressly included or incorporated in the policy by reference.

2)Implied warranty
This warranties are not mentioned in the policy at all but are tacitly understood by the parties to the contract and are as fully binding as express warranties.

Implied warranties are:
1) Seaworthiness of ship
->This warranty implies that the ship should be seaworthy at the commencement of voyage,or if the voyage is carried out in stages,at the commencement of each stage.
-> This warranty employees only to voyage policies, though such policies maybe of ship,cargo, freight or any other interest. There is no implied warranty of Seaworthiness in time policies.

2) Legality of venture
It implies that the adventure insured shall be lawful and that so far as the assured can control the matter,it shall he earned out in the lawful manner of the country.
-> Violation of foreign laws does not necessarily involve breach of warranty.
-> Applies to total policies,voyage or time.
-> The assured could have no right to claim the loss if the venture was illegal.

Other Implied warranties are:
1)No change in voyage.
2)No delay in voyage.
3)No deviation.