Navigating Uncertainty: Commencement and Duration of Risk Under India’s Marine Insurance Law

By Purnima Prabhakar, Assistant Professor of Law, Rajiv Gandhi National University of Law, Punjab.

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Abstract

Insurance against unpredictable risks offers individuals a measure of security and confidence to engage is trade and development. Particularly in maritime commerce, where the journey is vulnerable to unforeseen perils, marine insurance serves as a vital mechanism for mitigating loss. As a contract grounded in the principle of utmost good faith, marine insurance protects the assured’s insurable interest in the subject matter, be it cargo, hull, or vessel through various policy types as recognised under section 2(h) and Rule 15 of the Marine Insurance Act, 1963. Although the Act does not explicitly define when risk begins or ends under different marine policies, it makes implied references through sections 44 to 51, as well as in the Schedule through Rules 4 and 5. These provisions help interpret how the nature and scope of a given policy determine the moment at which risk attaches and its duration. For instance, while a time policy restricts coverage to one year (subject to certain exceptions), a voyage policy covers the insured transit irrespective of time. This paper examines the statutory framework governing commencement and duration of risk under Indian marine insurance law. It discusses the underlying principles of different policies, the role of implied statutory provisions, and the maritime perils that are typically insured. In light of India’s growing reliance on sea trade, ensuring legal clarity in determining when coverage begins and ends is critical to protecting the interests of the assured and supporting the resilience of the maritime sector.

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