Due to fraud and

intentional misconduct of
Hull Policy - loss or
the insured
damage of the vessel

All Risk Policy - Free of Capture and Seizure

insures against all Exclusions (FC&S) Clause
Builder's Risk Policy -
construction, conversion conceivable loss or
and repair of the hull. damage Strikes, Riots and Civil
Commotion (SR&CC)
Port Risk Only Pollicy - perils while the
ship is in port or damage while being Perils of the Sea -
transferred from one dock to another Insurance
pertains to natural
over VESSEL
calamities

Fleet Policy - fleet

of ships

Fire and Related

Perils
Full Form Policy - both
total anf parti lossal
Jettison
Named Perils
Total Loss Policy - specifies Barratry
Only Policy Perils
the perils insured
against. Assailing Thieves

Risks Insured
Running Down Clause - All Other Like Perils
Against
liability for collision

Marine Protection and Inchmaree Clause

Indemnity Insurance - liability
arising from the chartering and
Running Down Clause
owning of vessels. Insurance AGAINST
LIABILITY Sue and Labor Clause
Excess Protection and Indemnity Insurance - Clauses that Modify
coversliability in excess of the value of the ship Coverage
xpn: (limited liability rule) Protection and Indemnity
Clause
Water Pollution Liability
Institute War Clause
Ocean Marine Insurance
Trip Risk Cargo Policy - Memorandum Clause
particular shipment Insurance over
CARGO
Open Cargo Policy - blanket
insurance during existence of
contract.
(1) national character of the insured;
GENERAL RULE: Insurer may (2) liability from capture and
EXCEPTIONS: Section 112 (merely
rescind the IC even if the risk detention; (3) liability from breach of
Concealment exonerates the insurer, not vitiate
concealed is not the cause of the foreign trade; (4) want of necessary
Freightage - all the benefits derived by the entire contract)
loss. documents; (5) use of false and
the owner, either from the chartering of simulated papers
the ship or its employment for the
carriage of his own goods.
Insurance over
FREIGHT AND INCOME
If a representation by the insured is
INTENTIONALLY FALSE in (1) any
P 200,000 for every material respect, or (2) any fact which
manifested passenger the character and nature of the risk
In addition, P 50,000 for depends, insurer may rescind.
every survivor of a Representation (Sec.113)

maritime accident Kinds of

IN CASE OF DEATH - death Compulsory Insurance Coverage for Insurance
In the absence of fraud, eventual
certificate and evidence to Passenger and Cargo (Domestic falsity of a representation as to Time Policy - at the
establish payee
Shipping Act of 2004) expectation does not avoid a MC. (Sec.
commencement of every
114)
Claims Settlement - insurer shall pay claim voyage
WITHOUT THE NECESSITY of proving fault Cargo Policy - at the
or negligence on the part if the car carrier. GR: At the time of the commencement of each
(1) Seaworthiness (Sec. EXCEPTIONS
Ascertaining and commencement of the particular voyage
115-120)
Inland Marine Controlling Risks risk
IN CASE OF BODILY INJURY Voyage Policy - different
resulting in permanent insurance that do not Insurance stages, must be seaworthy
disability - certification relate to navigation at the commencement of
from a licensed physician itself or transit of each portion
goods and passenger.

Aircraft Hull Requisites: (1) the vessel has the requisite

covers all risks Policy documents of nationality or neutrality if
(2) Documents of
"ground and flight" Nationality or Neutrality expressly warranted; and (2) vessel will not
(Sec. 122) carry any documents which cast
reasonable suspicion.

(1) actual reliquishment of his

interest
(2) constructive total
loss
(3) abandonment be implied warranty that:
neither partial nor (3)Legality (1) adventure is lawful;
conditional. and (2) insofar as the
insured can control,
(4) Made within a reasonable time after
MARINE INSURANCE (MC) carried out in a lawful
receipt of reliable information of the
Abandonment manner.
loss
Requisites for Valid
(5) must be factual
Abandonment (Sec.
(6) Made by giving notice to the 140-147)
insurer, either orally or in writing.
(7) Notice must be explicit and must specify
the particular cause of the abandonment. Every deviation not
Improper Deviation specified in Sec. 126 is
*If all requisites are
improper. (Sec. 127)
present, insurer may not
reject the abandonment. (4) Against
Improper Deviation Kinds of
*All the rights of the Deviation (Sec. Deviation
insured over the thing is 123,124,125)
transferred to the
insurer. a.) Caused by
circumstances over
Implied Warranties which the master nor
b.)the
When necessary
owner has any to
Actual (Sec. 132) - total comply with
control a
destruction of the thing warranty, or to avoid a
insured peril
c.) When made in good
Proper Deviation faith and upon
Constructive (Sec. 141) - the (Sec. 126) reasonable grounds of
thing has been reduced to such Total belief in its necessity
a state as to make its total to avoid a peril
destruction highly imminent or
Kinds of Loss Loss d,) When made in
its ultimate arrival doubtful good faith, for the
Presumed (Sec.134) - (1) purpose of saving
continued absence of the ship human life or
for considerable length of time; relieving another
and (2) the vessel has not been vessel in distress.
heard of.

EXCEPTION: if the ship is

hypothecated, II is limited to
Partial - Every loss which is Shipowner(SO)
the amount not covered by
not total is partial. (Sec. 130) loan
all the expenses and damages
(1) there must be partial caused to the vessel or to her cargo
Charterer - to the extent he is liable to be
loss; and which have not inured to the
damnified by its loss
common benefit and profit of all
Requisites for its persons interested in the vessel and
Simple or SHIP Lender on Bottomry - amount of
(2) there is under- application: her cargo.
Particular Average loan
insurance (Sec. 138)
Free from Particular Average
(5) Presence of
(FPA) Clause - limits liability in Mortgagee
case of partial loss. Insurable
Based on Sec. 159, the amount the insurer is required to
Interest (Sec.
pay = PROPORTION BETWEEN THE AMOUNT INSURED AND Co-Insurance Clause 102-108) (II)
VALUE OF THE WHOLE INTEREST IN THE PROPERTY. (1) common danger
(Sec. 159) SO
(2) for the common safety,
part of the vessel or cargo or Shipper
THERE IS ALWAYS A CO- both is sacrificed CARGO
Consignee (buyer) - has II even if
INSURANCE CLAUSE IN MARINE deliberately. goods are still on transit and no
INSURANCE (3) there is successful saving transfer of ownership yet.
of the vessel and cargo.
Requisites:
Averages (4) expenses and damages
should have been incurred or
no II, if the shipper or charterer had
inflicted after taking proper
SO already paid the freightage in
General legal steps and authority.
FREIGHTAGE advance and without obligation to
Average AND refund in case of loss
INCOME
How Amount of Insurance/Value
computed of the Property Insured x GA
Charterer - if under a bareboat
(Sec. 166) Contribution of the Insured
charter
= Amount to be paid.