What are the Key Principles of Marine Insurance Policy ?

Marine insurance is governed by several key principles that ensure both parties (insurer and insured) understand their rights and obligations. Here are the key principles:

1. Utmost Good Faith (Uberrimae Fidei):

• Both parties must act with full honesty and disclose all material facts that could influence the decision to insure or the terms of the contract. Any concealment or misrepresentation can void the contract.

2. Insurable Interest:

• The insured must have a financial interest in the subject matter of the insurance (cargo, ship, etc.) at the time of loss. Without this, the contract is invalid.

3. Indemnity:

• The policyholder is compensated only for the actual loss suffered, preventing profit from the insurance. The goal is to restore the insured to their pre-loss financial position.

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