Marine insurance Time policy
- Marine insurance Time policy which is issued for a fixed period of time is known as time policy.
- A marine insurance policy is valid for a specified time period generally valid for a year. All the marine perils during that period are insured.
- This type of policy is suitable for full insurance. The policy is generally taken for one year although it may be for less than one year. But there is no restriction to make this type of policy for less than one year.
- This policy is more commonly used for hull insurance than for the cargo insurance.
- The ship is insured for a fixed period irrespective of voyages. The policy is generally issued for one year.
Advantages of Time policy :
– All the marine perils during that period are covered by the policy.
– This type of policy is suitable for Hull insurance for time charter or cargo insurance during time charter.
– Therefore most suited for Tramp shipping.
Disadvantages of Time policy
– The ship is insured for a fixed period irrespective of voyages. Problem would arise if the policy expires on completion of time when the ship is at sea. In such cases suitable clauses might have to be provided to extend the coverage till the sip reaches the port.