2. What Marine Insurance is: Marine insurance is that branch of insurance which provides coverage of risk to the goods of various description when they are in the process of transportation from one place to another. Goods may move from one country to another or within the country, they need insurance protection. Before we proceed further, let us see what Marine Insurance is: Marine insurance is a contract between the insurance company and the owner of goods. Undertaking under the contract is that if the goods suffer loss during transportation from an insured peril, the insurance company will make good the loss, subject to terms and conditions of insurance contract.

3. Why Marine Insurance should be done? Once the goods are moved out from the warehouse of the seller, they are no more in the custody of the seller or the buyer. They are rather in the hands of a third party called the carrier. During the transit loss can arise from: Fire, explosion Contact with water Breakage Accident Derailment of conveyance Theft Pilferage Non-delivery Exposure to these risks and the fact that the goods are in possession of a third party enhances the chances of loss.

4. Who should insure? Now the question arises who should take cover. The answer is obvious; any one who own the goods the reason being that he would suffer a financial loss if the goods are lost or destroyed. Another party who is in a similar position is the bank. Most, if not all, international transactions are financed by bank through L/C. Under L/C mechanism the bank holds all the documents of title which are not released to the consignee unless the bank is paid for the same. If the goods are destroyed before delivery to the consignee, the documents would not be retired and the bank will be a looser. It is to face such an eventuality that the bank requires insurance protection.

5. What is good in insuring? The affect of insuring the goods is that the element of risk of loss is transferred from owner of the goods to the insurer. Being free from the threat of loss, the producers and traders are able to concentrate on their business activities. Thus marine insurance acts as a partner who stands behind the owners of goods in the event of a loss and allows them to concentrate on their main business fearlessly.

6. How Marine Insurance is obtained? To obtain the cover following information is required: - Client’s Name & Address, Phone Numbers. - Bank - Description of goods - Value - Ship/Transporter - Destination This information should be sent to the following address: Adamjee Insurance Co Ltd Adamjee House I I Chundrigar Road, Karachi Phone: PABX: 241 2623–26, Direct: 241 6381, Fax: 241 2627 Adamjee Insurance Co Ltd Suite No. 217, Eden Centre 43, Ghaus-ul-Azam Road Lahore 54000 Phone:PABX: 756 0001-4, Dir: 757 1523, Fax: 757 6024

8. Premium Comparative - Class wise Net of Reinsurance AICL, #2 & #3 31 December 2005 (PKR Million)CLASSADAMJEEINSURANCE#2#3PREMIUM%PREMIUM%PREMIUM% PROPERTY1,01426 438 4381115817 MARINE1,0622754414 222 22224 MOTOR1,466372,7507331835 MISCELLANEOUS4091044122024

9. CLASSAICL#2#3PREMIUM%PREMIUM% PREMIU M % PROPERTY664262911115523 MARINE572223181214822 MOTOR1,030401,9037320130 MISCELLANEOUS2941126115724 (PKR Million) Premium Comparative - Class wise Net of Reinsurance AICL, #2, #3 30 June, 2006