Marine Insurance is a type of insurance that provides coverage against loss or damage to goods during transportation by sea, air, or land.
How It Works:
- The shipper purchases an insurance policy.
- Goods are covered during transit.
- Any loss or damage is reported.
- The insurer assesses the claim.
- Compensation is paid as per policy terms.
Benefits:
- Protects against transit risks
- Ensures financial security
- Supports smooth trade operations
- Builds confidence in international shipping
Example:
An exporter insures goods before shipping to protect against damage during transit.