Author Box
Articles Categories
All Categories
Articles Resources

The History of Marine Insurance

February 09, 2012 | Comments: 0 | Views: 152

The development of insurance contracts began to take shape in ancient Roman times as they tried to establish some order to trading methods. Genoa and other Italian city States instituted a system of separate insurance for maritime trade during the fourteenth century with this spreading to cities in Northern Europe. Primarily, costing of the policies was estimated on whether or not sea routes were safe or considered high risk of capture by pirates.

Marine insurance in English court law became established in 1601 with a chamber of assurance that separated it from other law. During the middle of the eighteenth century, the merging of merchant law and common law principles came about and saw the founding of Lloyds of London. Other marine insurers began and so an infrastructure consisting of shipbrokers and admiralty lawyers in combination with bankers gave birth to the maritime insurance as known today.

During the nineteenth century, standard clauses were developed by Lloyds and other London underwriters, known as the Institute Clauses, which are still used by marine insurers today.

From this ancient insurance, there developed non-marine insurance and reinsurance. However, in modern times, this is usually on offer together with Aviation and cargo risk (transit) insurance, known as 'MAT,' which a later standard policy on the London Market in 1991, changed to the 'MAR 91 form', a form of general insurance statement.

A typical marine insurance policy covers three-quarters of the insurer's liability to third parties. During the nineteenth century, ship owners formed underwriting clubs called Protection and Indemnity Clubs or P&I, for the remaining quarter of liability. These clubs still exist and non-commercial marine and non-marine mutuals are modelled on them, regarding oil polluting and other risks, such as nuclear fallouts.

Then there is 'total losses and 'constructive total loss'. When the damages to or cost of a repair equals or exceeds the value of the property, this is an actual loss, whereas a constructive total loss is the cost of the repair and the cost of salvage equal or exceeding the value. These two terms are applicable when there are assets left to pay for damages. Unfortunately, this is not always the case as ships sometimes get lost at sea or total theft occurs.

This is how marine insurance differs from non-marine insurance with the insured party having to prove the loss. By tradition, marine insurance notes that the insurers have an interest in the ship and cargo, rather than in only the ships survival.

Boat Quote provide cover from recognised UK marine insurers

George is the Webmaster of various UK sites dedicated to giving UK residents maximum online choice for all types of insurance. Why not visit Endsleigh Car Insurance: for a fast online quotation today, without obligation.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Marine Insurers

Auto insurance is probably one of the most expensive insurance types in Canada. An average car insurance policy in Canada costs approximately $1,200 per year and in Ontario, the largest Canadian

By: Alex Saltykov l Insurance > Car Auto l July 09, 2013 lViews: 553

Your house is often your largest investment that you need to protect via insurance. We created a list of multiple savings tips related to Home insurance and hope that these will help you to save a

By: Alex Saltykov l Insurance > Home Owners Renters l December 27, 2012 lViews: 380

Most auto insurance companies design specific car insurance policies for classic and antique cars. If you think you have a classic car and want classic car insurance, you will need to be sure that

By: Richard l Insurance > Car Auto l October 17, 2012 lViews: 570

Business Overhead Expense Insurance Plans can provide cash flow to the business in the event of a disability to a key employee or owner. For a small, growing company it might make the difference

By: T. Spencer White l Insurance > Disability l July 17, 2012 lViews: 243

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williams l Insurance > Workers Compensation l July 08, 2012 lViews: 221

One of the most helpful government programs out there is the SSI Disability program. A person that is legitimately disabled, and cannot work to provide an income for themselves for their family

By: Oleg Winter-Burnett l Insurance > Disability l July 04, 2012 lViews: 282

Manufacturing business is one of the complex business types, which involves complicated business operations that may put the capitals at risk. The challenges faced by the business owners are unique

By: Nate Rodnayl Insurance > Commerciall April 24, 2012 lViews: 181

Cleaning up after a disaster that strikes a business can be time consuming and expensive cost. Most commercial insurance policies offer cover for debris removal and fees for professional advice

By: Dave Healeyl Insurance > Commerciall April 22, 2012 lViews: 171

Unfortunately, risks of litigation are growing steadily, with society now having a new love; prosecuting for the slightest problem. Charities are not immune to this despite their ethical standing.

By: Denise Beresfordl Insurance > Commerciall April 20, 2012 lViews: 162

If you own or lease a shop premises or retail outlet, it essential to have the correct security in place to deter thieves. All insurance companies when offering shop insurance to retailers will

By: Dave Healeyl Insurance > Commerciall April 20, 2012 lViews: 175

If you employ a tradesman to carry out any sort of work on your property it is essential that you check that they have the adquate liability insurance cover in place. Failure to check whether a

By: Dave Healeyl Insurance > Commerciall April 20, 2012 lViews: 214

Business insurance is a form of risk management specifically suited to companies, including sole proprietorships. Business insurance is available in a wide array of formats, including a business

By: Ailene G Bridgesl Insurance > Commerciall April 18, 2012 lViews: 169

Every business owner in the UK is governed by some regulation or other. For any business that employs staff, one of the most important regulations is actually a legal requirement as laid down in the

By: George McGonigall Insurance > Workers Compensationl June 21, 2012 lViews: 185

Many small businesses are simple premises that are home to a takeaway shop. Whilst many may dream of their own food business, a huge number of first time ventures across all business sectors fail -

By: George McGonigall Insurance > Commerciall March 31, 2012 lViews: 150

No matter what the charity, insurance is a wise option. This is especially pertinent if a non-profit organisation runs a charity shop.

By: George McGonigall Insurance > Commerciall February 13, 2012 lViews: 192