Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination.

Marine insurance refers to a contract of reimbursement. The term originated when parties began to ship goods through the seaways. Despite what the name suggests, Marine Insurance applies to all modes of transportation of goods. For instance, when goods are shipped by air, the insurance is known as the contract of marine cargo insurance.

Marine insurance is required in many import-export trade dealings. Admitting the terms, both parties are liable for the payment of goods under insurance. However, the subject matter of marine insurance goes beyond contractual compulsions, and there are a number of convincing arguments necessary for opting for it before dispatching the export shipment.

The Marine Insurance Act, in India, came into existence in 1963. As per section three of the Act, any time the term ‘marine insurance’ is used, articulated or even extended for the insuring of goods against loss or damage, the insurer will be at risk to accept the charges. The insurer shall consider all the assurance of goods in case of adversity sustained during marine ventures.