ABSTRACT

Marine insurance is a specialised business, the practice of which requires expert knowledge. There are two kinds of losses in marine insurance: partial and total. Marine insurance is needed for the cargo and the ship to meet specific requirements, one of which is to cover contributions to general average. The marine insurance business is obviously closely related to seaborne trade, but there are other factors as well that affect the business cycle of the industry. The rapid changes in the world economic situation have created many problems for the industry, particularly worldwide inflation. Income from insurance policy sales has slipped because of the stagnation of the shipbuilding and shipping industries. The very foundation of modern international trade and shipping lies in the combination of the bill of lading, the certificate of insurance, and the letter of credit into a system, or mechanism, that allows goods to be financed and transported under acceptable conditions of risks to both shippers and carriers.