marine insurance

transcript

MA’AM ARIBA KHAN

Presented By:Presented By:

• Aisha AkramAisha Akram Roll# 01Roll# 01

• Fehmida AkramFehmida Akram Roll# 11Roll# 11

• Madiha LatifMadiha Latif Roll# 24 Roll# 24

History of Marine Insurance

One of the earliest forms of insurance

Established in the Mediterranean Sea in 2,000BC

Emergence as distinct commercial agreements

Commercial

Agreements

Bottomory Respondentia

BOTTOMRY

Bottomry was a transaction protecting an owner from a financial loss if his ship was

destroyed.

Respondentia

In Respondentia the ship’s cargo ,rather than the ship itself, was the subject of the loan.

A merchant, placing a cargo on a ship, would take out a loan using cargo as a collateral.

Therefore,

Marine Insurance

“Marine Insurance covers the loss or damage of ships, cargo, terminals, and any transport or property by which cargo is transferred, acquired, or held between the points of origin and final destination.”

Need For Insurance

Exporters and importers face all the time

uncertainties of loss of their goods.

Insurance is used to protect their financial

interests against such risks and actual losses.

Without adequate insurance and protection of the

interests of those with goods in transit,

international trade would be negatively affected.

Subject Matter Insured

Every lawful marine adventure may be insured:

Freight

Voyage

Movables

Ventures undertaken by a company

Risks in Marine Insurance

Risks are of many kinds.

Different risks mean different losses,

and different risks are covered by different insurance clauses

and different insurance clauses mean different premiums.

So we need to have a good understanding of the different risks and losses before we know how to effect insurance.

Risks …..

In marine insurance, risks fall into

Perils of the sea and

Extraneous risks

Perils of the Sea

Perils of the sea can further be either natural calamity or fortuitous accidents:

Natural calamity refers to the perils such as vile weather, thunder storm and lightening, tsunami, earthquake, flood, volcanic eruption, etc.

Fortuitous Accidents are such risks as ship striking upon the rocks, ship sinking, ship collision, colliding with icebergs or other objects, fire, explosion, ship

missing, etc.

Extraneous Risks

Extraneous risks can further be general extraneous risks and special extraneous risks.

Risks caused by theft, rain, leakage, breakage, dampness, heating, hooking and rusting are general extraneous risks.

Risks caused by war, strikes, failure of delivery etc. are special extraneous risks.

Losses

Losses sustained by the insured due to the risks listed above come from not only the loss of the goods or the damage done to the goods, but also from the expenses the insured sustained in rescuing the goods in danger.

The losses and the damages done to the goods can fall into total loss and partial loss.

Total Loss includes Actual Total Loss and Constructive Total Loss.

Partial Loss means that the loss or damage done to the goods is only partial. Partial loss can be either general average or

particular average.

Total Loss

Actual Total Loss

means the whole lot of the consignment has been lost or damaged or found valueless upon arrival at the port of destination.

Constructive Total Loss is found in the case where the actual total loss of the insured goods is unavoidable, or the ship or the consignment has to be abandoned because the cost of recovery would exceed the value of the ship and the consignment in sound condition upon the arrival of the port of destination.

Partial Loss

General Average is in use when both the ship and the consignments on board are endangered and the captain intentionally and reasonably does some sacrifices or makes some expenses for the safety of the ship and the consignments on board.

Particular Average losses borne by the owner of the ship or cargo due to direct damage to their property.

MARINE INSURANCE

OCEAN MARINE INLAND MARINE

LAND RISKSSEA RISKS

Ocean Marine Ocean Marine InsuranceInsurance

• Insurance for sea-going vessels, including liabilities connected with them, and their cargoes.

• provides protection for goods transported over

• one of the oldest forms of transportation

insurance

LOSS EXPOSURES

Marine hull freight losses Liability lossMarine cargo

HULL HULL InsuranceInsurance

• This exposure includes the value of ship and its equipment

• This insurance offers protection to owners of all types of ships for losses or damages to their waterborne property

HULL HULL INSURANCEINSURANCE

• Perils insured against this insurance:

Stranding Sinking Fire Collision etc

MARINE CARGO MARINE CARGO INSURANCEINSURANCE

• This exposure includes the value of goods being shipped.

• This insurance is available for shippers of goods from one place to another.

MARINE MARINE CARGO CARGO

INSURANCEINSURANCE• Terms of insurance:‗ Specific ‗ All risks• Two types of policy―Special policy―Open cargo policy

Loss of Loss of freightfreight

• The loss of income the ship-owner would have earned if the cargo or passenger had been delivered rather than damage or lost.

• This policy covers the “business income”

Liability lossLiability loss

• This loss exposure is a loss a ship owner would suffer if the ship were held to be legally responsible for negligently injuring other people or their property

INLAND MARINE INSURANCE

• A broad form of insurance, generally covering articles in transit as well as bridges, tunnels and other means of transportation and communication

Inland Marine Insurance

• marine insurers are allowed to insure property in the following categories:

• • Imports and exports; • • Domestic shipments; • • Instrumentalities of

transportation and communication (including bridges, tunnels, transmission towers and more)

Inland Marine Insurance

• Certain types of property owned by individuals (including jewelry, furs,

musical instruments and more) • Certain types of property related to

a • business or occupation (including

mobile equipment, property under bailment, electronic data processing and more).

MAJOR TYPES OF POLICY

1) Time policy

2) Voyage policy

3) Mixed policy

• A certain time limit• usually not exceeding

12 months.• In using a time policy,

the most important question is whether the loss occurred at a time in which the policy was running.

1) Time policy

• This is a policy that operates for the period of the voyage.

• For cargo,, the cover is from warehouse to warehouse.

• The policy will not apply if the actual voyage and/or ports are different from those in the policy.

2) Voyage policy

• This is a policy that covers the subject matter for the voyage within a time period.

• It is used to cover the cargo from warehouse to warehouse with a time limit.

• The cargo has to be warehoused within 60 days after discharge or the policy will no longer cover the cargo.

3) Mixed policy

Common Exclusions

Loss, damage or expenses attributable to willful misconduct of the assuredOrdinary lossesLoss, damage or expense caused by nature of the subject matter insuredLoss/damage due to insufficient, unsuitable or defective packing (including stowage)Loss/damage or expenses proximately caused by delay even if the delay is caused by a peril insured againstLoss damage due to un seaworthiness of the vessel or craft, containerWars, strikes and civil commotions unless covered under separate endorsements.

Marine Insurance

Marine Cargo

Marine Umbrella Liability

Marine Hull and Machinery

Marine Insurance

It is providing only marine cargo insurance.

Marine Cargo Import

Marine Cargo Export

Marine Umbrella Liability

Marine Hull

Calculation of Premium

The seaworthiness of the ship

Experience and ability of captain and crew

Potential of loss of the cargo

The route scheduled to be traveled and season of the

The coverage provided by the policy

What is Good in Insuring?

Thus marine insurance acts as a partner who stands behind the

owners of goods in the event of a loss and allows them to concentrate on their main business fearlessly.

How Marine Insurance is obtained?

To obtain the cover following information is required:

Client’s Name & Address, Phone Numbers.

Description of goods

Ship/Transporter

Destination

This information should be sent to the following address:

Adamjee Insurance Co Ltd

Adamjee House

I I Chundrigar Road, Karachi

Phone: 241 2623–26, Direct: 241 6381,

Fax: 241 2627

How Marine Insurance is obtained?

How do I file a marine How do I file a marine insurance claim?insurance claim?

This can be a long process, but it is necessary for you to recoup your losses.

Instructions: Phone your agent or company immediately.

Take pictures of the damage as soon as possible.

Get several written estimates of what it will cost to repair your boat.

How do I file a marine How do I file a marine insurance claim?insurance claim?

Call a claims representative from the insurance company to make your claim. The claims representative may come out, take pictures and help you fill out the claims form.

Wait for your check to arrive from the insurance company.

Receive your check from the insurance company, which you can then use to repair your boat.

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marine insurance

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