Gunford: Marine Insurance Fraud or Purely Coincidence!!

Global Maritime trade is affected hugely by the policies of maritime insurance being followed in various nations. An insurance policy is a contract in which an individual or entity (known as an insured) receives monetary reimbursement against losses, emerging from the occurrence of an event, from an insurance company (known as an insurer), generally in exchange for a premium.

Historical Maritime Fraud

Global Maritime trade is affected hugely by the policies of maritime insurance being followed in various nations. An insurance policy is a contract in which an individual or entity (known as an insured) receives monetary reimbursement against losses, emerging from the occurrence of an event, from an insurance company (known as an insurer), generally in exchange for a premium. Marine insurance alludes to a contract by which the insurer promises to reimburse the insured a loss resulting from "losses incidental to marine adventure". It provides coverage against any loss/harm to ships, terminals, cargo, etc.

It is said that Marine insurance is the primary insurance policy. In Babylonian times (2100 B.C.), the genesis of the initial insurance policy was observed whereby the merchants assured a sum to guarantee the safe arrival of their goods. Later, around 300 B.C., the concept of "Bottomry" came around. It was an arrangement by which the owner of the ship borrows money for repairing or maintenance of the ship and in return pledges the ship as security. If something happened to the ship by way of any perils, the lender shall lose his money but if the ship returns, the lender shall get his money back with a premium. This laid the foundation stone for the outset of Marine insurance. Marine Insurance, in a somewhat similar way as we know them now, was first found in Middle Ages in Europe.