1. What does marine insurance cover?

Under Sec. 99, Marine Insurance covers

SEC. 99. Marine insurance includes:
(1) Insurance against loss of or damage to:

(a) Vessels, craft, aircraft, vehicles, goods, freights, cargoes, merchandise, effects, disbursements, profits,
moneys, securities, choses in action, evidences of debt, valuable papers, bottomry, and respondentia
interests and all other kinds of property and interests therein, in respect to, appertaining to or in
connection with any and all risks or perils of navigation, transit or transportation, or while being
assembled, packed, crated, baled, compressed or similarly prepared for shipment or while awaiting
shipment, or during any delays, storage, trasshipment, or reshipment incident thereto, including war
risks, marine builder’s risks, and all personal property floater risks.

(b) Person or property in connection with or appertaining to a marine, inland marine, transit or
transportation insurance, including liability for loss of or damage arising out of or in connection with
the construction, repair, operation, maintenance or use of the subject matter of such insurance (but
not including life insurance or surety bonds nor insurance against loss by reason of bodily injury to
any person arising out of the ownership, maintenance, or use of automobiles).

(c) Precious stones, jewels, jewelry, precious metals, whether in course of transportation or otherwise

(d) Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings,
their furniture and furnishings, fixed contents and supplies held in storage); piers, wharves, docks and
slips, and other aids to navigation and transportation, including dry docks and marine railways, dams and
appurtenant facilities for the control of waterways.

(2) "Marine protection and indemnity insurance," meaning insurance against, or against legal liability of
the insured for loss, damage, or expense incident to ownership, operation, chartering, maintenance, use,
repair, or construction of any vessel, craft or instrumentality in use in ocean or inland waterways,
including liability of the insured for personal injury, illness or death or for loss of or damage to the
property of another person.

2. Precious stones - kahit nakatago lang. Lets say you have an insurance policy. Specific ba yung types ng insurance
na ifooffer ng company?

- no?

3. Loss of damage to vessels are covered by marine insurance. Can you geta. Fire insurance over a vessel?
Yes. If there is a marine insurance, there can be a co insurance of a fire insurance onl if express stipula in t
mari insurance

4. The vessel owner wants to insure the lives of his shipmen. Can he do that?

- Person or property in connection with or appertaining to a marine, inland marine, transit or

transportation insurance, including liability for loss of or damage arising out of or in connection with the
construction, repair, operation, maintenance or use of the subject matter of such insurance (but not including life
insurance or surety bonds nor insurance against loss by reason of bodily injury to any person arising out of the
ownership, maintenance, or use of automobiles).

SEC. 15. Other Insurance Coverage. — The MARINA shall have the power to require every ship operator to obtain
such other compulsory insurance coverage necessary to adequately cover claims for damages.

(1) MARINA requirement. Memorandum Circular No. 40 of the Maritime Industry Authority imposes a compulsory
passenger insurance coverage for all persons engaged in the business of carrying passengers in inter island trade.
The compulsory coverage covers death and injury to passengers due to accidental causes. The amount of the
coverage is P50,000.00 under a no-fault indemnity clause.

5. Insurable interest

Marine insurance is invalid unless supported by an insurable interest in the thing insured.

1. Shipowner
a. Over the vessel to the extent of its value:
i. If chartered, the recovery is only up to the amount not recoverable from the charterer

ii. If hypothecated by bottomry the difference between the value of vessel and the amount of loan

b. On expected freightage (Sec. 105).

2. Cargo Owner

a. Over the cargo and expected profits

b. If hypothecated by respondentia, the difference between the value of goods and the amount of loan

3. Charterer

a. Over the amount he is liable to the shipowner, if the ship is lost or damaged during the voyage

; and
Over his expected profits or freightage if he accepts cargoes from other persons for a fee

6. Does a person have insurable itnerst over the vessel he owns? What if pina-lease niya, meron parin?

- yes

Sec. 100. The owner of a ship has in all cases an insurable interest in it, even when it has been charteredby one
who covenants to pay him its value in case of loss: Provided, That in this case the insurer shall be liable for only
that part of the loss which the insured cannot recover from the charterer.

7. What if the vessel is subejcted to a bottomry loan? Does the owner have insurable itnerest over the vessel?
Up to what extent?

If hypothecated by bottomry the difference between the value of vessel and the amount of loan
 - 103. Excess of the loan? If 10 m ang loan at 10m ang value ng vessel, 0 ang liability

- Reason: the obligation to pay the loan is extingusihed by the loss of te vessel

8. Bottomry- Nagstart si owner na 10 million worth of asset (vesssel). Pag nangutang ng bottomry, 10 million ang
net worth. Pag umutang siya ng loan, meron siyang 10 m. Howecer, he also has a liability of 10m to A (insurer).
Kapag insured ang vessel that is full hypothecated by bottomry, may plus 10 siya. Pag nagkaroon ng loss,
mawawala ang vessel so minus 10 m siya. Ang bottomry ay parang advanced insurance.

9. Distinctive features of maarine insurance when it comes to isnurable interest

10. Does a charterer have insurable interest over the vesssel? - yes

11. Concealment v. Representation

CONCEALMENT

Each party in a marine insurance contract is bound to communicate the following:

1. All matters mentioned in Sec.28;

2. All information which he possesses material to the risk;
3. The exact and whole truth in relation to all matters he represents or upon inquiry discloses or assumes to
disclose (INSURANCE CODE, Sec. 109); and
4. Information of the belief or expectation of a third person, in reference to a material fact
When Concealment Does Not Vitiate Contract
Concealment in a marine insurance, in respect to any of the following matters, does not vitiate the entire contract,
but merely exonerates the insurer from a loss resulting from the risk concealed:

1. National Character of the insured;

2. Liability of the thing insured to Capture or detention;

3. Liability to seizure from Breach of foreign laws of trade

4. Want of necessary Documents; and

5. Use of False or simulated papers
(INSURANCE CODE, Sec. 112)

REPRESENTATION

If a representation by a person insured by a contract of Marine insurance is intentionally false in any Material
respect or in respect of any fact on which the character and nature of the risk depends, the insurer may rescind
the entire contract
(INSURANCE CODE, Sec. 113).
Effect of False Representation by Insured

1. Intentional
Anymisrepresentation of a material fact made with fraudulent intent avoids the policy; and

2. Not intentional but material to the risk

The insurer may also rescind the contract from the time the representation becomes false.

Effect of Falsity of Representation as to Expectation

The eventual falsity of a representation as to expectation does not, in the absence of fraud, avoid a contract of
marine insurance

12. Belief of the insured himself, kailangan niya ba sabihin?

Coverage of Seaworthiness

1. Condition of the structure of the ship;

2. It must be Properly laden;
3. Provided with a Competent master;
4. Sufficient number of competent officers and seamen;
5. Requisite appurtenances and equipment; and
6. Other necessary or proper stores and implements for the voyage (INSURANCE CODE, Sec.118).

When is it shipworthy

Sec. 114. A ship is seaworthy when reasonably fit to perform the service and to encounter the ordinary perils of
the voyage contemplated by the parties to the policy.

13. Period of seaworthiness

Sec. 115. An implied warranty of seaworthiness is complied with if the ship be seaworthy at the time of the of
commencement of the risk, except in the following cases:

(a) When the insurance is made for a specified length of time, the implied warranty is not complied with unless
the ship be seaworthy at the commencement of every voyage it undertakes during that time;

(b) When the insurance is upon the cargo which, by the terms of the policy, description of the voyage, or
established custom of the trade, is to be transshipped at an intermediate port, the implied warranty is not
complied with unless each vessel upon which the cargo is shipped, or transshipped, be seaworthy at the
commencement of each particular voyage.
14. What are the implied warranties?

IMPLIED WARRANTIES IN MARINE INSURANCE

1. Presence of insurable interest (INSURANCE CODE, Sec. 102);

2. Against improper deviation - It is the departure from the course of the voyage insured, or an unreasonable delay
in pursuing the voyage, or the commencement of an entirely different voyage
3. Against Illegal venture;

4.. Neutrality - the ship will carry the requisite documents of nationality or neutrality of the ship or cargo where
such nationality or neutrality is expressly warranted (INSURANCE CODE, Sec. 122); and

5. Seaworthiness of the ship at the inception of the insurance (INSURANCE CODE, Sec.115)

15. What is illegal venture

16. Kinds of deviation

1. Deviation from the agreed voyage;

2. Departure of vessel from the course of the sailing fixed by mercantile usage

3. Departure of vessel from the most natural, direct, and advantageous route if not fixed by mercantile usage

4. Unreasonable delay in pursuing voyage

17. When it comes to deviation, how will you know which route the vessel must take?

18. Instances where deviation is allowed?

19. What is the effect of deviation?

20. what if after deviation, bumalik yung vessel sa tamang landas/route? What is the effect if there was loss?

21. Is the concept of Abandonment in marine insurance the same as in transportation law?

- insurance, you abandon a ship in behalf of insurer. Sa transpo, abandonment in favor of creditors
(limited liability rule)

22. Grounds for constructive loss

Try: memaid - aquino - de leon

Next meeting: continue marine until fire insurance