Marine insurance also referred to as waterborne insurance is an agreement where one party undertakes the payment of premium and the other undertakes to indemnify the assured to the extent of all losses, damages and costs that arise from maritime peril and contingency; unless specified otherwise in the agreement. Marine insurance has become one of the most important forms of insurance and is one of the oldest forms of insurance policy which continues to develop from its original form. The long history, and its specialty focus make Marine insurance a relatively independent insurance system.
With its increasing impact on international trade, China is playing a significant role in the international shipping industry. This has resulted in a dramatic increase in disputes concerning marine insurance. Therefore it is important to note particular rules and regulations are applied in the substantive law, procedural law and in the settlement of marine insurance disputes because of the distinction between marine insurance cases and other forms of insurance cases.