Marine insurance is one of the oldest types of insurance. It plays a vital role in foreign trade by providing protection against perils of the sea. Sea perils include piracy, collision, capture by enemy, seizure, restraint, jettison, barratry, etc. Jettison means throwing away of goods overboard in order to avoid sinking of ship, while barratry refers to a fraudulent breach of duty by master or staff of the ship. Sinking of ship after being hit by a rock, loss of cargo due to sea water or heat are other examples of sea perils. Thus, marine insurance may be defined as a contract whereby the insurer agrees to indemnify the insured in a manner and to the extent agreed upon against marine losses.