Presented By: Seaden Lopes Bhavika Gala Kanchi Gupta

Marine insurance
There is no legal obligation in English Law to insure ships, goods or freight All marine insurance contracts agreed in the UK are governed by the Marine insurance Act 1906

Principles of insurance
Indemnity Insurable interest Utmost good faith Doctrine of proximate cause

Indemnity

Principle of Indemnity is that insurer will indemnify assured for loss and will restore him to the position he was immediately before loss occurred. In life insurance, purpose is to pay a known sum of money, with a possibility that as a result, assured will be better off than before. Where indemnity is the purpose, assured should not be better off as a result of the loss, fraud will be otherwise encouraged. Assured cannot claim more than once on the same risk with two insurers (double insurance) Assured cannot recoup his loss from another party after the claim was settled. E.g. cargo owner after claiming from his insurers cannot claim again from his carrier.

Insurable interest
The subject matter must be a physical object exposed to peril. Assured must have some legal relationship (not necessarily ownership) to the subject matter. Assured must stand to benefit by its preservation. Assured must stand to lose by its loss or damage.

Utmost good faith

Assured must disclose to the insurer before the contract is concluded, every material circumstance which is known to the assured and which would influence the insurers judgement in fixing the premium or whether or not he would accept the risk. e.g. shipowner must disclose that his ship has failed for example a special survey.

Doctrine of proximate cause

Insurer is not liable for any loss which is not proximately caused by a peril insured against. E.g. if a ship is scuttled and seawater entering the ship sinks her, owner may claim that the peril of seas was the cause of his loss, but the insurer would not be liable since scuttling is a wilful misconduct of the assured.

Classification of Marine Insurance

Policies covering Damages or loss to modes of Conveyance
Hull

Policies Buliders Risk Policies (Shore Bound) Port Risk Only Policy Fleet Policy

Policies offering protection against liabilities to third parties

Collision Protection insurance policy (crew, dock) Water pollution policy

Policies covering Loss or Damage to Cargo Shipments

Particular average General average

Features of Institute Cargo Clauses

Risk Clause General Average Clause General Exclusion Clause War Exclusion Clause Strike Exclusion Clause

Contract of Marine Insurance

Coverage Insurable Value Disclosure and Recommendations

The Marine Insurance Policy

Voyage and Time Policies Valued and Unvalued Policies Floating Policy Peril Clause

Warranties
Expressed in : either Express or Implied Limiting features Change of port of departure Change of destination Change of voyage Deviation from voyage Delay in voyage

Marine Cargo Policy

Sum assured Premium rating Claims Requirements

Marine Losses
Total loss Actual Total Loss Constructive Total Loss Partial Loss General average contribution particular average loss particular charges, salvage charges

Inland transit

Pure Inland Transit Clauses -> Inland Transit -Risk Covered Clause A (all risks) Clause B (basic) -Duration -> Inland Vessel Clause -General Exclusions -Duration

Inland transit
-> Institute Cargo Clauses (AIR) - Duration -> Institute War Clauses (AIR CARGO) - Risk Covered - Duration

Thank You