1 Hull Insurance, including engines, boilers, all fittings and ship gear, it’s called Hull and Machinery insurance.
2 Increased value insurance or insurance disbursement.
3 Freight insurance.
4 Protection and Indemnity Insurance
Hull and Machinery Insurance
Protect the boat owner from any damage/physical damage of the ship, also guarantees the ship owners from it needs and responsibilities to 3rd party, for instance, if ship collided with another ship, ship bumped into the dock, and so on. Hull and Machinery insurance is only linked with the vessel, engine boilers, all clobber and ship hardware.
Commonly what is covered from loss is total loss, partial loss (particular average damage), the contribution of general average and salvage also obligations to 3rd party.
Improved Value Insurance
If the ship suffered a total loss as a result for the shipowner aside from the loss of his ship, also experienced losses of abstract (intangible loss), the loss of “ability” to earn money. Another result of the ship experienced an one hundred percent loss, the crew will be made redundant together with facilities and workers on the shore, especially in port operations will be reduced. Indeed, facilities and employees of the affected vessels can also be used and employed to serve the other ships, but nevertheless, the final activity (over-all operations) will be impaired balance and reduced activity. In addition, the quantity of compensation secured by the shipowner from the insurer is not enough to purchase a ship in same conditions with the ship experienced a complete loss on account of changes in global market prices ships (since then and now, in general costs of products factory-made, including boats always rise in the world market). For losses (abstract) So, the insurer were willing to cover. This suggests, that the ship owner (insured) in a position to cover the insurance for such losses, called Raised Value Insurance also called Disbursement Insurance. Thus, losses in the abstract is treated as interest that may be insured (insurable interest), though awfully tough to show an interest, there is, however, a loss if the vessel suffered a complete loss.