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It does not dispense with the requirement that the vessel be seaworthy
at the inception
of the voyage
12. When does insurable interest in marine insurance exist?
Ans:
The assured in a marine insurance contract need not have an insurable
interest at the
time the insurance is effected but he must have reasonable
interest expectation of acquiring
such interest and he must have an interest
at the time of loss.
13. Under the Insurance Code, what is freightage?
Ans:
Ordinarily, freightage is defined as the total capacity of a ship available
for the carriage
of cargo.
However, under the Insurance Code, it refers to all benefits derived by
the owner either
from the chartering of the ship or its employment for the
carriage of his own goods or those of others.
14. When does the insurable interest in freightage exist?
Ans:
a. in a charter party, the insurable interest on the expected freightage
commences when the ship commences the voyage agreed upon.
b. If there is no charter party, insurable interest on expected freightage
exists from the
time that the goods are actually on board. And if there is some
contract for putting goods on
board, the insurable interest on expected
freightage exists form the time both ship and goods
are
ready
for
the
specified voyage.
15. Define Concealment
Ans:
Concealment is the neglect to communicate that which a party knows
or ought to communicate
Concealment in the law of Marine Insurance, is failure t disclose any
material fact or circumstances in relation to the subject matter f the contract
which may increase the liability for loss or affect the risk or obligation
assumed, and which is, in fact or law, within, or ought to be within, the
knowledge of on party, and of which the other party has no actual or
presumptive knowledge.
16: What are the requisites of Concealment?
Ans:
The following are the four requisites:
a. the party concealing must have knowledge of the fact concealed;
b. the fact concealed must be material to risk;
c. the party concealing makes no warranty as to the fact concealed; and
d. the other has not the means of ascertaining.
ANNOTATION:
Section 28 of the Insurance Code provides that each
party of insurance must communicate to the other, in good faith, al facts
within his knowledge which are, material to contract and as to which he
makes no warranty, and which in other has not the means of ascertaining.
The contract if founded on utmost good faith or under the principle of
uberrimae fidie; and if it be not observed by the party the contract may be
voided.
Also, it is prerequisite to the liability of the underwriter, under
any of the clauses, that the loss be proximately caused by the peril insured
against and claimed under.
17. What is an insurable interest?
Ans:
Insurable interest is one the most basic of all requirements in
insurance. In general, a person is deemed to have insurable interest in the
subject matter insured where he ha a relation or connection with or concern
in it that he will derive pecuniary benefit or advantage from its preservation
and will suffer pecuniary loss or damage from its destruction, termination or
injury by the happening of the event insured against.
NOTE:
Section 10. Every person has an insurable interest in the life and
health:
(a) Of himself, of his spouse and of his children;
(b) Of any person on whom he depends wholly in part for education or support, or in
whom he has a pecuniary interest;
(c) Of any person under a legal obligation to him for the payment of money, or
respecting property or services, Of which death or illness might delay or
prevent the performance; and
(d) Of any person upon whose life any estate or interest vested in him depends.
18. Distinguish Actual and Constructive loss
Ans:
Actual Total loss is one where the subject matter is wholly annihilated
or has ceased to remain in specie or where the subject matter, although
remaining in specie, I irretrievably lost to insured and underwriter. (See
Section 130)
Constructive Total loss (Technical Total loss) is where the loss, although
not actually total, is of such a character that insured is entitled, to treat it as
total by abandonment.
19. Distinguish General average and Particular average
Ans:
General Average
Particular Average is the liability attaching to a Marine Insurance policy
in respect of damage or partial loss accidentally and immediately caused by
some of the perils insured against, to some particular interest.