Question 72

Most Inland Marine policies provide protection on an 'all-risk' basis.

Inland Marine policies typically offer coverage on an 'all-risk' basis, which means they protect against a wide range of risks unless specifically excluded in the policy. This comprehensive coverage is designed to safeguard goods in transit and other movable property.

A) an open policy.

An open policy is a type of insurance that covers all risks but is not specific to Inland Marine policies. While some Inland Marine policies may be issued as open policies, it is not accurate to say that most Inland Marine policies provide protection on this basis.

B) a retroactive form.

A retroactive form of coverage applies to events that occurred before the policy was purchased. This is not a characteristic of Inland Marine policies, which focus on current risks associated with transportation and movable property, making this option incorrect.

C) an 'all-risk' basis.

Inland Marine policies are primarily designed to provide protection on an 'all-risk' basis, offering extensive coverage against a variety of risks, making this the correct answer. This type of coverage is crucial for protecting goods in transit or stored away from the main premises.

D) a named perils basis.

A named perils basis only covers risks that are explicitly listed in the policy. While some policies may offer this type of coverage, most Inland Marine policies are structured to cover a broader range of risks, making this option less common and therefore incorrect.

Conclusion

The definitive nature of Inland Marine insurance is its provision of coverage on an 'all-risk' basis, which is essential for protecting goods during transit or storage. Other options fail to capture the comprehensive nature of coverage that Inland Marine policies typically offer, highlighting why option C is the most accurate choice.