Significance Of Marine Insurance

The importance of marine insurance has increased more than ever before in this age of globalization. The following points highlight the importance or significance of marine insurance.

1. Marine insurance facilitates global trade

The volume of trade through the sea have tremendously increased, and so has the risk of loss at the sea. Therefore, marine insurance plays significant role in facilitating the global trade by minimizing the risk thereof.

2. Marine insurance ensures economic property

The volume of marine insurance business is an indicator of the economic prosperity of a country. There is a close link between a sound marine insurance market and industrial development.

                     Also Read: Types Of Risks Covered By Marine Insurance

3. Marine insurance provides peace of mind
 
Marine insurance provides peace of mind to the businessmen by meeting their financial losses from marine risks. It helps to reduce tension and fear, and takes away anxiety from the businessmen and managers who are in the international business. As a result, they are able to operate their business without any tension, fear, anxiety.

                     
4. Marine insurance improves quality of life

Marine insurance helps control losses that may arise from the marine risks. As a consequence, people are encouraged to engage more in international business. This means more investments, more jobs, more production, more income and more consumption of goods and services which help to improve the people's quality of life.

                     Also Read: Concept And Types Of Marine Insurance Policy

5. Marine insurance provides social benefits

Marine insurance helps businessmen to recover funds from a loss. This keeps the business going, jobs are not lost, and goods and services continue to be sold. The social benefit of this are that people do not loose their jobs and their sources of income are intact. This contributes to the unhindered growth of the national economy.

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