These are various types of insurance. But they can be broadly classified into two: life insurance and Non-life insurance. There are other classifications of insurance but the one adopted in this article is a reflection of the practice and tradition of many Nigerian insurers. They tend to divide them into four major departments namely, the Marine department, the fire department, the life department and the Accident department. The more popular type of insurance will be highlighted under each department.
1. Marine insurance:
Marine insurance relate to three main domains of risk: the hull, cargo and freight; and they constitute the main division of marine insurances. The risks usually covered in marine insurance are many, and are collectively called "perils of the sea" and they include fire, theft, collision, third parties risk, taking at sea and many others.
The hull insurance refers to the insurance taken out by the ship owner to protect him against loss of the ship and its machinery by the happening of Martine risks. It is usually contracted for a period of one year like in motor vehicle insurance.
The cargo insurance provides cover in respects of goods, produce or merchandise carried by the ship.
The freight insurance is a special type of marine insurance. It provides cover against loss of the freight should the cargo be lost or not delivered due to the occurrence of the perils of the sea. Freight means the money paid for transporting goods, or for the hire of a ship. It is only paid; at least, in dull on delivery, of the merchandise.
The importance of marine insurances in international trade explains the compulsory requirement of the marine insurance in every international trade at least in Nigeria, and their being used as documentary evidence in foreign trade. Merchandise carried by the ship.
The general purpose of marine insurance is to provide insurance protection, for the owner of relevant interest, against fortuitous losses arising from the happing of "perils of the sea" such as fire, theft, damage by bad weather or sea-water.