The Marine Insurance Act 1906 states 'Subject to the provision of this Assignment

The Marine Insurance Act 1906 states 'Subject to the provision of this Act, every person has an insurable interest who is interested in a marine adventure' - Assignment Example Those with insurable interest in marine insurance includes everyone who would suffer loss in the event of the insured risk occurring. Such include the owner of the consignment under shipping, the seller of the goods, the mortgager and mortgagee among others. The paper will discuss when insurable interest exists according to the Marine Insurance Act 1906 and outline hull and cargo interests which define the types of marine insurance. Noussia (1) and Giaschi (1) note that at around 215 B.C., the Lloyds of London developed measures to ensure that they are protected against losses incurred during their trades as they ship cargo to West Indies. Merchants would come together and have each of them bear part of the maritime risk such that they would share any losses occurring during such adventures. With time, the strategy shifted to using individuals who did not have any interest in these adventures where they would pay premiums to them and transfer maritime risks to them. In the modern world, commercial insurers bear the cost of compensation by accepting premiums depending on the magnitude of the risk involved. According to the National Archives, marine insurance refers to the insurer undertaking to indemnify the assured against losses occurring during a marine adventure as per their agreement, in manner and extent. This could be extended through its express terms to cover against losses on land or inland waters as a consequence of sea voyage. According to the UK Marine Insurance Act 1906, referred to as the mother of all statues on marine insurance by Birds (5), everyone interested in a maritime adventure has insurable interest. Such persons could have a legal relation to the adventure or could have property therein that could be insured, of which, its safety or due arrival would be of direct benefit. Loss, damage or detention of such property