8/2/2019 86137654 Marine Insurance

1/44

MARINEINSURANCEPresentedBy:GouravMukherjee(11DCP073)RichaSethi(11DCP091)

8/2/2019 86137654 Marine Insurance

2/44

MarineInsurance-DefinitionMarineInsuranceis:AContractofIndemnityforaspecifiedconsideration(premium)forspecificRisks(windsandwavesnotincluded).

8/2/2019 86137654 Marine Insurance

3/44

MarineInsurance-DefinitionMarineinsurancewillincludetheinsuranceofhulls,thecargotheycarry,liabilitiesthatmaydevolveuponshipsandshipoperators,knownasprotectionandindemnityandalsotheinsuranceofwharves,portsandharbours,containerterminalsandevenoilplatformsanddrillingrigs.-TRAFALGARINTERNATIONALLTD.InsuranceBrokersandConsultants

8/2/2019 86137654 Marine Insurance

4/44

TypesofMarineInsuranceHullInsurance

LiabilityInsurance

MarineInsurance

CargoInsurance

FreightInsurance

8/2/2019 86137654 Marine Insurance

5/44

TypesofMarineInsuranceHullInsuranceCargoInsuranceFreightInsuranceLiabilityInsurance

HullInsurancecoverstheinsuranceofthevesselanditsequipmenti.e.furnitureandfittings,machinery,tools,fuel,etc.Itiseffectedgenerallybytheowneroftheship

8/2/2019 86137654 Marine Insurance

6/44

TypesofMarineInsuranceHullInsuranceCargoInsuranceFreightInsuranceLiabilityInsurance

CargoInsuranceincludesthecargoorgoodscontainedintheshipandthepersonalbelongingsofthecrewandpassengers

8/2/2019 86137654 Marine Insurance

7/44

TypesofMarineInsuranceHullInsuranceCargoInsuranceFreightInsuranceLiabilityInsurance

FreightInsuranceprovidesprotectionagainstthelossoffreight.Inmanycases,theownerofgoodsisboundtopayfreight,underthetermsofthecontract,onlywhenthegoodsaresafelydeliveredattheportofdestination.Iftheshipislostonthewayorthecargoisdamagedorstolen,theshippingcompanylosesthefreight.Freightinsuranceistakentoguardagainstsuchrisk

8/2/2019 86137654 Marine Insurance

8/44

TypesofMarineInsuranceHullInsuranceCargoInsuranceFreightInsuranceLiabilityInsurance

LiabilityInsuranceisoneinwhichtheinsurerundertakestoindemnifyagainstthelosswhichtheinsuredmaysufferonaccountofliabilitytoathirdpartycausedbycollisionoftheshipandothersimilarhazards

8/2/2019 86137654 Marine Insurance

9/44

BasicRisksPerilsofSea

FireJettisonBarratry

8/2/2019 86137654 Marine Insurance

10/44

BasicRisksPerilsofSeaFireJettisonBarratryPerilsoftheSeaTheseincludedamagetothevesselorcargobyforcesofwaves,storms,strandingofthevessel,sinkingofthevesselandcollisionwithothervessel,etc.

8/2/2019 86137654 Marine Insurance

11/44

BasicRisksPerilsofSeaFireJettisonBarratry

FireThisincludesdamagedirectlyduetofireoreffortstoextinguishthefire.

8/2/2019 86137654 Marine Insurance

12/44

BasicRisksPerilsofSeaFireJettisonBarratry

JettisonItmeansvoluntarythrowingoverboardofsomecargotosavetheshipandtherestofthecargo.

8/2/2019 86137654 Marine Insurance

13/44

BasicRisksPerilsofSeaFireJettisonBarratryThetermBarratryincludeseverywrongfulactwilfullycommittedbythemasterorcrewtotheprejudiceoftheowner,or,asthecasemaybe,thecharterer.InMaritimelaw,assetoutwithintheBritishMarineInsuranceActof1906,itrefersto"barratrousconduct"

8/2/2019 86137654 Marine Insurance

14/44

TypesofLossesTotalLoss

PartialLossGeneralAverageLossParticularAverageLoss

8/2/2019 86137654 Marine Insurance

15/44

TypesofLossesTotalLossTotal

TotalLoss

Lossmaybeeitheranactualtotallossoraconstructivetotalloss.ActualTotalLoss-Inthistypeofaloss,thegoodsinsuredaredestroyedordamagedastoceasetobeathingofthekindinsured,orwheretheassuredisirretrievablydeprived.ConstructiveTotalLossThisisthelosswhichappearstobeunavoidableorbecauseitcouldnotbepreservedfromactuallosswithoutanexpenditurewhichwouldexceedtheirvaluewhentheexpenditurehadbeenincurred.

PartialLoss

GeneralAverageLoss

ParticularAverageLoss

8/2/2019 86137654 Marine Insurance

16/44

TypesofLossesPartialLossTotalLossPartialLossisdefinedasalossotherthanthetotalloss.

PartialLoss

Itmayincludeparticularaveragelossorgeneralaverageloss.

GeneralAverageLoss

ParticularAverageLoss

8/2/2019 86137654 Marine Insurance

17/44

TypesofLossesGeneralAverageLossTotalLossIn

PartialLoss

timeofgeneralperilanextraordinarysacrificeorexpendituremaybemadeorincurredforthepurposeofpreservingthepropertiesincommon.Examplesofgeneralaveragesacrificeare:1.CargoJettisoning2.Damagecausedbyfire/attempttoextinguishfire.3.Expensesofenteringandleavingtheportofrefuge.4.Expensesofdischarging,storingandreloadingofthecargoifthatbenecessaryforthecommonsafety.

GeneralAverageLoss

ParticularAverageLoss

8/2/2019 86137654 Marine Insurance

18/44

TypesofLossesParticularAverageLossTotalLossAparticularaverage

PartialLoss

lossisapartiallossofthegoodsinsured,causedbyaperilinsuredagainst,andwhichisnotageneralaverageloss.Whilethegeneralaveragelossisvoluntarilyundertakenforthecommonsafetyofallthepartiesinsured,aparticularaveragelossisfortuitousoraccidental.Itcannotbepartiallyshiftedtoothersbuthastobebornebythepersondirectlyaffected.

GeneralAverageLoss

ParticularAverageLoss

8/2/2019 86137654 Marine Insurance

19/44

TypesofLosses-SummaryMarineLoss

TotalLoss

PartialLoss

ConstructiveTotalLoss

ActualTotalLoss

ParticularAverageLoss

GeneralAverageLoss

8/2/2019 86137654 Marine Insurance

20/44

RisksCoveredInstituteCargoClause(C)

InstituteCargoClause(B)

InstituteCargoClause(A)

WarandSRCCCover

8/2/2019 86137654 Marine Insurance

21/44

RisksCoveredFireorExplosion.Standing,grounding,sinkingorcapsizingofthevessel.Overturningorderailmentoflandconveyance.Collisionorcontactofvessel.DischargeofcargoataportofdistressJettison

InstituteCargoClause(C)

InstituteCargoClause(B)

InstituteCargoClause(A)

WarandSRCCCover

8/2/2019 86137654 Marine Insurance

22/44

RisksCoveredLossordamageattributabletoearthquake,volcaniceruptionoflightning.Washingoverboard.Lossordamagetothegoodscausedbyentryofsea,lakeorriverintovessel,containerorvanetc.Totallossofanypackagelostoverboardordroppedwhilstloadingontoorunloadingfromvessel.

InstituteCargoClause(C)

InstituteCargoClause(B)

InstituteCargoClause(A)

WarandSRCCCover

8/2/2019 86137654 Marine Insurance

23/44

RisksCoveredBypayingextrafollowingcanbeincludinginClause(B):Theft,pilferageornon-delivery.Rainwaterdamage.Hook,oil,mud,acidanddamagebyothercargo.Heatingandsweating.Leakage.

InstituteCargoClause(C)

InstituteCargoClause(B)

InstituteCargoClause(A)

WarandSRCCCover

8/2/2019 86137654 Marine Insurance

24/44

RisksCoveredAllrisksexceptwar,strike,riotsorcivilcommotion

InstituteCargoClause(C)

InstituteCargoClause(B)

InstituteCargoClause(A)

WarandSRCCCover

8/2/2019 86137654 Marine Insurance

25/44

RisksCoveredCoverforwar,strike,riotsorcivilcommotionalongwithanyoftheaboveclauses

InstituteCargoClause(C)

InstituteCargoClause(B)

InstituteCargoClause(A)

WarandSRCCCover

8/2/2019 86137654 Marine Insurance

26/44

MarineInsurancePoliciesVoyagePolicy

TimePolicyMixedPolicyValuedPolicyOpenorUn-ValuedPolicy

FloatingPolicyWageringorHonourpolicy

8/2/2019 86137654 Marine Insurance

27/44

MarineInsurancePoliciesVoyagePolicyTimePolicy

MixedPolicy

ValuedPolicyOpenorUn-ValuedPolicyFloatingPolicyWageringorHonourPolicy

VoyagePolicyisapolicyinwhichthesubjectmatterisinsuredforaparticularvoyageirrespectiveofthetimeinvolvedinit.Inthiscasetheriskattachesonlywhentheshipstartsonthevoyage.

8/2/2019 86137654 Marine Insurance

28/44

MarineInsurancePoliciesVoyagePolicy

TimePolicyisapolicyinwhichthesubjectmatterisinsuredforadefiniteperiodoftime.Theshipmaypursueanycourseitlikes,thepolicywouldcoveralltherisksfromperilsoftheseaforthestatedperiodoftime.Atimepolicycannotbeforaperiodexceedingoneyear,butitmaycontaina'continuationclause'.The'continuationclause'meansthatifthevoyageisnotcompletedwithinthespecifiedperiod,theriskshallbecovereduntilthevoyageiscompleted,ortillthearrivaloftheshipattheportofcall.

TimePolicy

MixedPolicy

ValuedPolicyOpenorUn-ValuedPolicyFloatingPolicyWageringorHonourPolicy

8/2/2019 86137654 Marine Insurance

29/44

MarineInsurancePoliciesVoyagePolicyTimePolicy

MixedPolicy

ValuedPolicyOpenorUn-ValuedPolicyFloatingPolicyWageringorHonourPolicy

Mixedpolicyisacombinationofvoyageandtimepoliciesandcoverstheriskduringparticularvoyageforaspecifiedperiodoftime.

Mixedpolicy=VoyagePolicy+TimePolicy

8/2/2019 86137654 Marine Insurance

30/44

MarineInsurancePoliciesVoyagePolicyTimePolicy

MixedPolicy

ValuedPolicyOpenorUn-ValuedPolicyFloatingPolicyWageringorHonourPolicy

Valuedpolicyisapolicyinwhichthevalueofthesubjectmatterinsuredisagreeduponbetweentheinsurerandtheinsuredanditisspecifiedinthepolicyitself.

8/2/2019 86137654 Marine Insurance

31/44

MarineInsurancePoliciesVoyagePolicyTimePolicy

MixedPolicy

OpenorUn-valuedpolicyisthepolicyinwhichthevalueofthesubjectmatterinsuredisnotspecified.Subjecttothelimitofthesumassured,itleavesthevalueofthelosstobesubsequentlyascertained.

ValuedPolicyOpenorUn-ValuedPolicyFloatingPolicyWageringorHonourPolicy

8/2/2019 86137654 Marine Insurance

32/44

MarineInsurancePoliciesVoyagePolicyTimePolicy

MixedPolicy

ValuedPolicyOpenorUn-ValuedPolicyFloatingPolicyWageringorHonourPolicy

FloatingPolicyisapolicywhichonlymentionstheamountforwhichtheinsuranceistakenoutandleavesthenameoftheship(s)andotherparticularstobedefinedbysubsequentdeclarations.Suchpoliciesareveryusefultomerchantswhoregularlydespatchgoodsthroughships.

8/2/2019 86137654 Marine Insurance

33/44

MarineInsurancePoliciesVoyagePolicyTimePolicy

MixedPolicy

ValuedPolicyOpenorUn-ValuedPolicyFloatingPolicyWageringorHonourPolicy

WageringorHonourPolicyisapolicyinwhichtheassuredhasnoinsurableinterestandtheunderwriterispreparedtodispensewiththeinsurableinterest.

SuchpoliciesarealsoknownasPolicyProofofInterest(P.P.I).

8/2/2019 86137654 Marine Insurance

34/44

MarineInsurancePoliciesVoyagePolicy

ContentsofthePolicyThenameoftheassuredorofsomepersonwhoaffectstheinsuranceonhisbehalf.

TimePolicy

MixedPolicy

Thesubjectmatterinsuredandriskinsuredagainst.Thevoyageorperiodoftime

ValuedPolicyOpenorUn-ValuedPolicyFloatingPolicyWageringorHonourPolicy

both.Thesumorsumsinsured.Thenameornamesofinsurerorinsurers.

8/2/2019 86137654 Marine Insurance

35/44

RisksNotCoveredLoss,damageorexpensecausedbydelayandinherentviceornatureofthesubjectmatter.Loss,damageorexpensecausedbywillfulmisconductoftheinsured.Ordinaryleakage,ordinarylossinweightorvolumeorordinarywearandtearofsubjectmatterinsured.Insufficiencyorunsuitabilityofpacking.Deliberatedamagetoordeliberatedestructionofgoods.Lossduetoinsolvencyorfinancialdefaultoftheowners,managers,chartersoroperatorsofthevessel,Lossordamagearisingfromnuclearweaponorotherradioactiveforce.

8/2/2019 86137654 Marine Insurance

36/44

WarehousetoWarehouseClauseWarehousetoWarehouseclausestatesthatthegoodsareinsuredfromthetimetheyleavethewarehouseoftheexporterandremainsinforcetillthegoodsreachthegoodsreachthedestinationandarestoredinawarehousethere.Butontheshipreachingthedestination,ifthegoodscannotbetakendeliveryofduetoreasonbeyondthecontroloftheconsignee,theinsurancewillbevalidfor60daysfromthedateofarrivaloftheshipafterwhichitexpires.

8/2/2019 86137654 Marine Insurance

37/44

WarehousetoWarehouseClauseThustheinsurancewillexpireonthegoodsbeingplacedinagodownintheimporterscountryoronexpiryof60daysfromthedateofarrivaloftheshipwhicheverisearlier.Theperiodof60daysisallowedonlyincaseswherethedelayisbeyondthecontroloftheimporter.

8/2/2019 86137654 Marine Insurance

38/44

ClaimProcedureGiveanoticeoflosstotheinsurancecompanyimmediately.Takeallstepstominimizetheloss,preserveallrightsagainstthirdparties.Arrangeforsurveybyshipsurveyorsifthepackagesshowanyoutwardsignofdamage.Arrangeforinsurancesurveybytheinsurancecompanyinothercases.Preferclaimswithshippingcompaniesandotherpartieswhererequired.Submitinsurancepolicy,copybilloflading,invoice,packinglistandclaimbill.

8/2/2019 86137654 Marine Insurance

39/44

ToSummarizeTypesofMarineInsurance-Hull,Cargo,FreightandLiabilityRisksCovered-InstituteCargoClause(C),InstituteCargoClause(B),InstituteCargoClause(A),WarandSRCCCoverBasicRisks-PerilsofSea,Fire,JettisonandBarratryMarineInsurancePolicies-Voyage,Time,Mixed,Valued,OpenorUn-Valued,FloatingandWageringorHonourPolicy

8/2/2019 86137654 Marine Insurance

40/44

8/2/2019 86137654 Marine Insurance

41/44

UnitedIndiaInsurance

MarineHullInsurancePremiumRatingThenormalbasisofvaluationforocean/airconsignmentwillbeCIF+incidentalsuptoapercentagewhichisagreeduponattheinceptionofthepolicy(normallythisis10%)

8/2/2019 86137654 Marine Insurance

42/44

UnitedIndiaInsurance

MarineHullInsuranceForexample,InsuranceAmount-$40,000CoverPercent-110%(10%includedforrecoverychargesfortheclaims)TotalAmount=110%*40,000=$44,000

8/2/2019 86137654 Marine Insurance

43/44

8/2/2019 86137654 Marine Insurance

44/44