Question

Name the marine policy which is useful for merchants who regularly dispatch goods through ships.

Hint:

Floating Policy = One policy for many shipments over time.

Answer 1

Merchants who regularly send shipments of goods through sea routes face frequent risks during transit.
Issuing a separate marine insurance policy for every shipment would be time-consuming and costly.
To make this process convenient, a Floating Policy is used in marine insurance.
A Floating Policy covers multiple shipments within a specified period under a single policy.
The insured declares the details of each shipment when dispatching the goods.
This saves time, reduces paperwork, and ensures continuous coverage for regular shipments.
Therefore, the marine policy useful for merchants dispatching goods regularly is called a Floating Policy.