KRISSETTE GRACE F.

CAMPILAN
EH 404 JD3
CLASSES OF INLAND INSURANCE COVERAGE
Vessels, goods, freight, cargo, merchandise, profits, money, valuable
Property in transit Bailee liability Fixed transportation papers, bottomry and respondentia, and interest
Floater
property Persons or property
Precious stones, jewels, jewelry and precious metals whether in the
INSURABLE INTEREST course of transportation or otherwise;
Bridges, tunnels, piers, docks and other aids to navigation and
over the vessel to the extent of
its value transportation
Shipowner Cargo
expected freightage
SPECIAL MARINE INSURANCE CONTRACTS AND CLAUSES
Insurance against risks connected with navigation to
over the cargo and expected
Cargo owner which a ship, cargo, freightage, profits or other
profits
insurable interest in movable property, may be All Risks Policy Barratry Clause Inchamaree Clause Sue and Labor Clause
over the amount liable to the exposed during a certain voyage or a fixed period of
Charterer shipowner, if the ship is lost or time
damaged during voyage
all causes of conceivable loss or no recovery on the policy in case of any willful
damage, except excluded in the misconduct on the part of the master or crew in
Owner/Debtor policy; or due to fraud or pursuance of some unlawful or fraudulent purpose
Difference between the value of ve ssel or goods
In loans on intentional misconduct without consent of owners
and the amount of loan
bottomry and MARINE
respondentia Creditor/lender INSURANCE clause which makes the insurer liable for loss or damage to the clause under which the insurer
Amount of the loan hull or machinery arising from the negligence of the captain, may become liable to pay the
engineers, explosions, breakage of shafts; and latent defect of insured, in addition to the loss
machinery or hull actually suffered
IMPLIED WARRANTIES
LOSS AVERAGE CO-INSURANCE
Against Warranty of Presence of
Against illegal
Seaworthiness improper neutrality insurable Has inured to the common benefit and loss is partial
venture Total Partial General
deviation interest profit of all persons interest ed in the
vessel and cargo
1. Common danger to the vessel or cargo; 2. Pa rt of the vessel or amount of
DEVIATION Actu al That which is not total cargo was sacrificed de liberately; 3. Sacrifice must be for the
insurance is less
common safety or for the benefit of all; 4. Sacrifice must be made by
1. Tot al dest ruct ion
A departure from the course of the voyage insured, or an unreasonable delay in pursuing the voyage or the 2. Irretrievable loss by sinking
the master or upon his authority; 5. It must be not be caused by any than the value of
fault of the party asking the contribution; 6. It must b7. e successful
commencement of an entirely different voyage 3. Damage renderin g the thin g and Ne ce ssary. the property
Departure of vessel Commencement of
valu eless; or Has not inured t o the common benefit insured
Departure of vessel from Unreasonable delay in 4. Tot al deprivation of owner of
from the course of
the most natural, direct and an entirely different Particular and profit of all persons int erest ed in the
pursuing voyage possession of th ing in sured.
the sailing fixed by voyage ABANDONMENT vessel and cargo
Rules:
advantageous route
mercantile usage 1. Co-insurance applies
caused by circumstances outside th e Con st ruct ive actual relinquishment by the person insured of his interest
only to marine insurance
Prope control of the ship captain or ship owner Impro Every 1. Actu al loss of m ore than of in the thing insured
2. Logically, there cannot
r per the valu e of the object
necessary t o comply with a warrant y or to deviation 2. Damage reducin g valu e by constructive total loss f be coinsurance in life
avoid a peril not more than of the value of the a insurance.
In case of specified vessel and of cargo abandonment be neither partial nor conditional c 3. Co-insurance applies
In case of made in good faith to avoid a peril
KINDS loss or 3. Expen se of transsh ipmen t
t in fire insurance when
loss, the exceed of value of cargo made within a reasonable time after receipt of reliable
damage, the u expressly provided for
insurer is still made in good faith to save hu man life or information of the loss
insurer is not a by the parties.
liable. to relieve another vessel in distress
liable made by giving notice thereof to the insurer l

must be explicit and must specify the particular cause

 PREREQUISITES TO RECOVERY
HOSTILE FIRE FRIENDLY FIRE
Proof of loss according to best
Notice of loss must be immediately One that escapes from One that burns in a
evidence obtainable. Delay may also
given, unless delay is waived the place where it was place where it was Insurer is not
be waived expressly or impliedly by Insurer is liable
expressly or impliedly by the insurer intended to burn and intended to burn and liable
the insurer
ought to be. ought to be

MEASURE OF INDEMNITY
Open policy: only the expense
necessary to replace the thing lost or
injured in the condition it was at the
time of the injury
INDIRECT LOSSES
Financial Loss due to the
direct physical damage of
physical property
A contract by which the insurer for a consideration agrees to indemnify
the insured against loss of, or damage to, property by hostile fire,
including loss by lightning, windstorm, tornado or earthquake and other
Valued policy: the parties are bound
allied risks, when such risks are covered by extension to fire insurance
by the valuation, in the absence of
fraud or mistake
Indirect or consequential losses
arising out of the loss of use of
the property
Business Interruption Insurance: the
insurer is liable for the loss suffered
that could have been realized had the
business continued and expenses
that continued despite business
interruption
Extra Expense Insurance: covers
extraordinary expenses that may be
incurred in an effort to avoid any
interruption of service
Rent Insurance: protects insured
from loss of rental income
policies or under separate policies
FIRE INSURANCE
OPTION TO REBUILD CLAUSE
A clause giving the insurer the
option to reinstate or replace the
property damaged or destroyed
or any part thereof, instead of
paying the amount of the loss or
the damage.
The insurer, after electing to
rebuild, cannot be compelled to
perform this undertaking by
specific performance because
this is an obligation to do, not to
give.
Remedy: Art. 1167, NCC
If a person obliged to do
something fails to do it, the same
shall be executed at his cost.
ALTERATION AS A SPECIAL GROUND FOR
FALL-OF-BUILDING CLAUSE
A clause in a fire insurance
policy that if the building or
any part thereof falls ,
except as a result of fire ,all
insurance by the policy
shall immediately cease.
CO-INSURANCE
applies to fire insurance
only if expressly agreed
upon
War and Related Risks
RESCISSION BY INSURER
The use or condition of the thing
is specifically limited or
stipulated in the policy
R
Such use or condition as limited
E
Q by the policy is altered
U
The alteration is made without
I
the consent of the insurer
S
I The alteration is made by means
T within the control of the insured
E
S The alteration increases the risk
There must be a violation of a
policy provision.
PROHIBITION
Non-Alienation Clause: cannot
be transferred without the
consent of the insurer
EXCEPTIONS

Intentional Act
KRISSETTE GRACE F. CAMPILAN
EH 404 JD3
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