Date post: | 14-Nov-2014 |
Category: |
Documents |
Upload: | aisha-akram |
View: | 13 times |
Download: | 10 times |
11
22
MA’AM ARIBA KHAN
33
Presented By:Presented By:
• Aisha AkramAisha Akram Roll# 01Roll# 01
• Fehmida AkramFehmida Akram Roll# 11Roll# 11
• Madiha LatifMadiha Latif Roll# 24 Roll# 24
44
55
History of Marine Insurance
One of the earliest forms of insurance
Established in the Mediterranean Sea in 2,000BC
Emergence as distinct commercial agreements
66
Commercial
Agreements
Bottomory Respondentia
77
BOTTOMRY
Bottomry was a transaction protecting an owner from a financial loss if his ship was
destroyed.
88
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.
99
Therefore,
1010
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.”
1111
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.
1212
Subject Matter Insured
Every lawful marine adventure may be insured:
Cargo
Freight
Voyage
Ships
Goods
Movables
Ventures undertaken by a company
1313
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.
1414
Risks …..
In marine insurance, risks fall into
Perils of the sea and
Extraneous risks
1515
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.
1616
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.
1717
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.
1818
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.
1919
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.
2020
2121
MARINE INSURANCE
OCEAN MARINE INLAND MARINE
LAND RISKSSEA RISKS
2222
2323
Ocean Marine Ocean Marine InsuranceInsurance
• Insurance for sea-going vessels, including liabilities connected with them, and their cargoes.
• provides protection for goods transported over
water
• one of the oldest forms of transportation
insurance
2424
LOSS EXPOSURES
Marine hull freight losses Liability lossMarine cargo
2525
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
2626
HULL HULL INSURANCEINSURANCE
• Perils insured against this insurance:
Stranding Sinking Fire Collision etc
2727
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.
2828
MARINE MARINE CARGO CARGO
INSURANCEINSURANCE• Terms of insurance:‗ Specific ‗ All risks• Two types of policy―Special policy―Open cargo policy
2929
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”
3030
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
3131
3232
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
3333
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)
3434
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).
3535
MAJOR TYPES OF POLICY
1) Time policy
2) Voyage policy
3) Mixed policy
3636
• 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
3737
• 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
3838
• 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
3939
4040
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.
4242
Marine Insurance
Marine Cargo
Marine Umbrella Liability
Marine Hull and Machinery
Marine Insurance
It is providing only marine cargo insurance.
4444
Marine Cargo Import
Marine Cargo Export
Marine Umbrella Liability
Marine Hull
4646
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
year
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.
4848
How Marine Insurance is obtained?
To obtain the cover following information is required:
Client’s Name & Address, Phone Numbers.
Bank
Description of goods
Value
Ship/Transporter
Destination
4949
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?
5050
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.
5151
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.
Emma Maersk - World’s Largest
Container Ship
SS Central America -Gold Ship
RMS Titanic