Marine Insurance

• Marine insurance related to three area of

risk, the hull, cargo and and freight. The risk
against which these items are normally
insured are collectively termed as peril of sea
and includefire,theft,collusion and wide range
of other perils
 Subject matter insured
• Hull
• Cargo
 Marine Hull Insurance
.
• The term hull refers the body or frames of the
ship-hull, insurance provides cover for the hull
and machinery as well as in respect of material
and outfit and stores and provisions for the
officers and crews. In addition , cover for
liabilities are included.
– 1. Types of Cover
• Institute of Time Clouse
• Running Down Clause
A. Institute of Time Clouse
• The cover provided by Institute of time clause(HULL)
and the risk covered are maritime perils such as fire,
collusion, damage to hull caused by latent defect in
machinery and accident in loading or discharging cargo
etc are covered
B. Running down Clause- Extends the hull policy to
provide cover to the ship owner in respect of his
liability for damage caused to another ship in collision
as a consequence of negligent navigation
 Additional covers

• Loss of fright-earning derivable by the ship

owner for the employement of his ship
• Disbursement- Amount spent by him in fitting
out the vessel including provisions and stores
 Marin Cargo Insurance-

• It covers all type of goods transported by

sea,air or inland water ways and land transit
by road or rail. It also covers sending by
ordinary or registered mail,air mail and parcel
post.
 • Insured Value
• The insured value of cargo is its cost,freight, and other
charges plus an allowance for expected profit normally
10% of total cost
• Duration of cover
• The duration of cover ranges from the time the good
leave the warehouse or place of storage at the place
named in the policy and continues during the ordinary
course of transit and terminates either on delivery;
• To the consignee
• To any other warehouse or place of storage
• On the Expiry of 60 days
 Extension of Cover Beyond 60 days

• Extension could be provided beyond the 60

days cover provided by ICC at additional
premium at the rate of 10% of basic rate for
the 1st 15 days, thereafter, the duration is
extended at 5% premium by 15 days interval.
 Scope of cover

• ICC (A),(B),(C)
• Institute of war clause
• Institute of strike clause