The general meaning of insurance is “a safeguard against financial losses or setbacks” that could happen accidentally, or due to some unforeseen circumstances beyond ordinary human control. Literally, anything and everything can be insured be it property, life, professional assets like the voice of a singer, the legs of a professional sportsman or anything that a person can think of, that is valuable and which is the major component for the person’ livelihood. The main reason that people insure themselves, their properties or cargoes or any other things is to be protected from any risks that may occur in the future, and in case of accidents and improbability.
Obtaining insurance coverage cannot prevent accidents from happening, but keeps the person from financial losses by compensating what was lost as the result of an accident or disaster. Insurance means sharing the risk of your losses with someone else. In case a person who is insured for life does not meet with any accident or uncertainty, insurance coverage is a type of retirement fund or money that can be used for other purposes after the maturity of the policy. Insurance safeguards against the uncertainties’ in life. This was also the beginning of Lloyd’s of London, which was started in competition with other insurance companies, and developed an the most basic level of organizational structure in a complex body or system that serves as a foundation for the rest that included experts such as shipbrokers, and maritime or admiralty which controls and has authority over maritime written or verbal inquiries and legal or moral acts of crime.
During the 19th century, Lloyd’s and the Institute of London Underwriters which was a consortium of London created and a consistent distinct section of documents, especially legal documents, that is usually separately numbered (clauses) to regularize marine insurance. These are now used and are a standard part of marine insurance all over the world. These clauses enable parties to independently write contracts among themselves. Traditional insurance was the outcome of marine insurance and “reinsurance” Before 1991, the wording of the policies was pretty antiquated, so the London traders re-wrote a new standard policy in contemporary language which was called the MAR 91 form.
Because marine insurance policies are usually issued on a contribution basis, all participating underwriters share the liability on the proportionate sharing basis, meaning that each agent is responsible for compensating his share of the payments when a claim is lodged. If for some reason, one writer cannot pay his share of the claim, under the law the liability cannot be transferred onto the other underwriters.