MARINE INSURANCEY : B

What is Marine Insurance?

 A contract of Marine Insurance is an

agreement where by the insurer undertakes to indemnify the assured in the manner and to the extent thereby agreed ,against marine losses , that is to say , the losses incidental to marine adventure.

Nature and Scope of Marine Insurance Contract

 The Marine Insurance is regulated under the

Indian Marine Insurance Act 1963 (enforced on 1st August,1963) which is based on the original Marine Insurance Act, 1906 of U.K. Marine Insurance, has been made mandatory in export and import business .

 The document containing the contract of

insurance is known as the Marine Policy or Sea Policy

 It essentially provides cover for the losses

suffered due to Marine Perils.

Maritime Perils
 Maritime Perils " means the perils consequent

on, or incidental to, the navigation of the sea, that is to say, perils of the seas, fire, war perils , pirates, rovers, thieves, captures, seizures, restraints and detainments of princes and peoples, jettisons, barratry and any other perils.

The Perils of the Sea

 A Per i l of t he Sea m a y b e d ef i n ed a s t o cover ever y t hi n g t ha t ha p p en s t o t he shi p i n t he cou r se of voy a g e b y t he i m m ed ia t e a ct of God wi t hou t t he i n t er ven t i on of hu m a n a g en cy .

Exa m p l es:
 Fou n d er i n g a t Sea Shi p wr eck  St r a n d i n g  C ol l i si on

Losses not regarded as perils of sea (Excluded losses):

 Wear and Tear  Breakage of Goods  Inherent Vice (defects in goods)  Death of Animals etc due to natures causes  Loss by Rats and Vermin  Loss by Delay*

TYPES OF COVER
    

Hull Cargo Freight Voyage Collision

TYPES OF VESSELS COVERED

Dinghies Yachts Cargo vessels Liners Super tankers Oil rigs Fishing vessels

BASIC COVER
 Perils of the sea and other

navigable waters
 Restraint of princes  Piracy  All risks

FURTHER COVER
 Pollution Hazard  War and strikes clause  Bursting boilers or breaking shafts  Accident or negligence of a third party

IMPLIED WARRANTIES
 Seaworthiness

Damaged bottom Insufficient crew

 Legality  Marine Insurance Act 1906