Ocean Marine insurance is coverage in the event of a marine loss. The following are examples of Marine loss:
- Damage or destruction of a ship's hull and the ship's cargo (freight) as the result of the occurrence of an insured peril
- Perils insured against include collision of the ship with another ship or object
- The ship sinking, capsizing, or being stranded
- Jettisoning (throwing overboard of property to save other property)
- Barratry (fraud or other illegal act by a ship's master or crew, resulting in damage or destruction of the ship and/or cargo), and various other liability exposures.
To be covered, an act cannot involve prior knowledge by the owner of the ship or its cargo. Excluded are wear and tear, dampness, decay, mold, and war.
Ocean Marine insurance is the oldest form of insurance, probably dating to the Middle Ages.
Because of its long tradition, ocean marine policies tend to be the most traditionally worded policies in the insurance industry, and to have the longest tradition of case law legal decisions covering the various terms and clauses of the policies. While care should be taken with any insurance to clarify any definitions provided in the policies, this is especially true in marine coverages, where the defined terms may have long histories.
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