Marine Insurance

Marine Insurance
and Law
Cover
Marine Insurance Cover

Who Requires Marine Insurance?

Shipowners
Shipowners require marine insurance cover against:

◊ Actual or Constructive Total Loss (CTL) of ship’s hull, machinery and equipment
(H&M cover)

◊ Accidental damage (Particular Average) to ship’s hull, machinery and equipment

(H&M cover)

◊ Liabilities arising due to:

• Collision (to owners of other vessels / their cargoes)

• General Average charges

• Salvage charges

• Third party Claims (Damage done by own ship to a third party’s property)

• Third party Risks - P&I risks (cargo claims, personal injuries, pollution, wreck
removal costs, etc.)

• Oil pollution claims

• Employer’s liability to workers

◊ Losses arising due to:

• Strikes

• Operation of war risks

• Loss of freight

• Loss of charter hire (e.g. when vessel goes “off-hire” after sustaining damage)

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 Marine Insurance
Marine Insurance
and Law
Cover
Marine Insurance Cover

◊ Increased value, disbursements, and excess liabilities (an additional source of

recovery over and above the hull and machinery insured value in case of total loss)

◊ Shipowners’ Liability insurance (SOL), a special insurance, to protect the owners

◊ against extra risks they incur if they lose their defense to liability under the rules

◊ governing the carriage of goods by sea.

The ship owner can arrange for the following insurance covers for his ships.

Hull and Machinery (H&M) Protection and Indemnity Risks (P&I)

◊ Ships’ Equipment (ittings / spares / ◊ Oil Pollution Liabilities including
consumable stores) Excess Oil Pollution Cover (Overspill)

◊ Running Down Clause liability (RDC) ◊ War Risks

◊ Fixed & Floating Objects (FFO) ◊ Collision Liabilities

◊ Ice Damage ◊ Deviation Cover

◊ Special Clauses (I.T.C.) ◊ Crew Liabilities

◊ Owner’s Special Clause ◊ Charterer’s excess liabilities including

damage to hull
◊ Classiication Clause
◊ Gratuitous passenger insurance
◊ Amended Fleet Clause
◊ Strike insurance
◊ Radioactive Contamination exclusion
Clause ◊ Lien insurance

◊ General Average ◊ Bunker insurance

◊ Salvage ◊ Freight insurance

◊ Loss Payable Clause ◊ Sea Going Wives insurance

◊ Drug Seizure

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 Marine Insurance
Marine Insurance
and Law
Cover
Marine Insurance Cover

◊ War Risks

◊ Freight, Demurrage and Defence

Risks (FD & D)

◊ Loss of Hire (LOH)

Charterers
Charterers require marine insurance cover against:

◊ Legal costs and expenses arising from disputes related to vessel hire, freight, dead
freight, GA/PA, demurrage / despatch, detention, breach of C/P or B/L, improper
loading of cargo, poor quality of bunkers supplied etc.

◊ Liability for

• Loss / damage to the vessel / cargo

• Oil pollution other than that arising from a tanker in US territorial waters

• Loss / damage to third party property

• Death / personal injury claims

• Fines

• Damage to ixed property- wharf / dock

• Wreck clearance costs

• Proportion of GA or salvage charges not covered by any other insurance

• Liability arising from breach / deviation under a B/L- cargo carried on deck
against under deck B/L

• Physical loss of bunkers

• Loss of freight at risk

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 Marine Insurance
Marine Insurance
and Law
Cover
Marine Insurance Cover

• Oil pollution arising from a tanker in US territorial waters

• Stowaway costs

Cargo Owners
Cargo owners require marine insurance cover against:

◊ Loss / damage to goods in transit

◊ Loss of earnings due to strikes

◊ Loss of earnings due to operation of war risks

◊ Liability for general average charges

◊ Liability for salvage charges

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