3. Marine insurance defined.—A contract of marine insurance is an agreement whereby the insurer
undertakes to indemnify the assured, in the manner and to the extent thereby agreed, against marine
losses, that is to say, the losses incidental to marine adventure.
4. Mixed sea and land risks.—(1) A contract of marine insurance may, by its express terms, or by
usage of trade, be extended so as to protect the assured against losses on inland waters or on any land risk
which may be incidental to any sea voyage.
(2) Where a ship in course of building or the launch of a ship, or any adventure analogous to a marine
adventure, is covered by a policy in the form of a marine policy, the provisions of this Act, in so far as
applicable, shall apply thereto, but except as by this section provided, nothing in this Act shall alter or
1. 1st August, 1963, vide notification No. S.O. 1925, dated 8th July, 1963, see Gazette of India, Extraordinary, Part II, sec. 3(ii).
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affect any rule of law applicable to any contract of insurance other than a contract of marine insurance as
by this Act defined.
Explanation.—“An adventure analogous to a marine adventure” includes an adventure where any
ship, goods or other movables are exposed to perils incidental to local or inland transit.
5. Lawful marine adventure.—Subject to the provisions of this Act, every lawful marine adventure
may be the subject of a contract of marine insurance.