MARINE INSURANCE

Presented By: Gourav Mukherjee (11DCP073) Richa Sethi (11DCP091)

Marine Insurance - Definition
Marine Insurance is:  A Contract of Indemnity  for a specified consideration (premium)  for specific Risks (winds and waves not included).

Marine Insurance - Definition
Marine insurance will include the insurance of hulls, the cargo they carry, liabilities that may devolve upon ships and ship operators, known as ‚protection and indemnity‛ and also the insurance of wharves, ports and harbours, container terminals and even oil platforms and drilling rigs.
- TRAFALGAR INTERNATIONAL LTD. Insurance Brokers and Consultants

Types of Marine Insurance
Hull Insurance

Liability Insurance

Marine Insurance

Cargo Insurance

Freight Insurance

etc.e.Types of Marine Insurance Hull Insurance Cargo Insurance Freight Insurance Liability Insurance Hull Insurance covers the insurance of the vessel and its equipment i. tools. furniture and fittings. machinery. It is effected generally by the owner of the ship . fuel.

Types of Marine Insurance Hull Insurance Cargo Insurance Freight Insurance Liability Insurance Cargo Insurance includes the cargo or goods contained in the ship and the personal belongings of the crew and passengers .

If the ship is lost on the way or the cargo is damaged or stolen.Types of Marine Insurance Hull Insurance Cargo Insurance Freight Insurance Liability Insurance Freight Insurance provides protection against the loss of freight. the owner of goods is bound to pay freight. only when the goods are safely delivered at the port of destination. In many cases. the shipping company loses the freight. Freight insurance is taken to guard against such risk . under the terms of the contract.

Types of Marine Insurance Hull Insurance Cargo Insurance Freight Insurance Liability Insurance Liability Insurance is one in which the insurer undertakes to indemnify against the loss which the insured may suffer on account of liability to a third party caused by collision of the ship and other similar hazards .

Basic Risks Perils of Sea Fire Jettison Barratry .

Basic Risks Perils of Sea Fire Jettison Barratry Perils of the Sea  These include damage to the vessel or cargo by forces of waves. storms. sinking of the vessel and collision with other vessel. etc. . stranding of the vessel.

.Basic Risks Perils of Sea Fire Jettison Barratry Fire  This includes damage directly due to fire or efforts to extinguish the fire.

Basic Risks Perils of Sea Fire Jettison Barratry Jettison  It means voluntary throwing overboard of some cargo to save the ship and the rest of the cargo. .

Basic Risks Perils of Sea Fire Jettison Barratry The term Barratry includes every wrongful act wilfully committed by the master or crew to the prejudice of the owner. or. the charterer. as set out within the British Marine Insurance Act of 1906. it refers to "barratrous conduct" . In Maritime law. as the case may be.

Types of Losses Total Loss Partial Loss General Average Loss Particular Average Loss .

Actual Total Loss .Types of Losses Total Loss  Total Total Loss Loss may be either an actual total loss or a constructive total loss. Constructive Total Loss – This is the loss which appears to be unavoidable or because it could not be preserved from actual loss without an expenditure which would exceed their value when the expenditure had been incurred. or where the assured is irretrievably deprived. Partial Loss General Average Loss Particular Average Loss . the goods insured are destroyed or damaged as to cease to be a thing of the kind insured.In this type of a loss.

Types of Losses Partial Loss Total Loss Partial Loss is defined as a loss other than the total loss. General Average Loss Particular Average Loss . Partial Loss It may include particular average loss or general average loss.

General Average Loss Particular Average Loss . storing and reloading of the cargo if that be necessary for the common safety. Examples of general average sacrifice are: 1. 3. 4. Expenses of discharging. Damage caused by fire/attempt to extinguish fire.Types of Losses General Average Loss Total Loss  In Partial Loss time of general peril an extraordinary sacrifice or expenditure may be made or incurred for the purpose of preserving the properties in common. Expenses of entering and leaving the port of refuge. Cargo Jettisoning 2.

While the general average loss is voluntarily undertaken for the common safety of all the parties insured.Types of Losses Particular Average Loss Total Loss  A particular average Partial Loss loss is a partial loss of the goods insured. It cannot be partially shifted to others but has to be borne by the person directly affected. caused by a peril insured against. and which is not a general average loss. General Average Loss Particular Average Loss . a particular average loss is fortuitous or accidental.

Types of Losses.Summary Marine Loss Total Loss Partial Loss Constructive Total Loss Actual Total Loss Particular Average Loss General Average Loss .

Risks Covered Institute Cargo Clause (C) Institute Cargo Clause (B) Institute Cargo Clause (A) War and SRCC Cover .

 Standing.  Discharge of cargo at a port of distress  Jettison Institute Cargo Clause (C) Institute Cargo Clause (B) Institute Cargo Clause (A) War and SRCC Cover . grounding. sinking or capsizing of the vessel.  Overturning or derailment of land conveyance.Risks Covered  Fire or Explosion.  Collision or contact of vessel.

Institute Cargo Clause (C) Institute Cargo Clause (B) Institute Cargo Clause (A) War and SRCC Cover .  Loss or damage to the goods caused by entry of sea.  Washing overboard. container or van etc. lake or river into vessel.Risks Covered  Loss or damage attributable to earthquake. volcanic eruption of lightning.  Total loss of any package lost overboard or dropped whilst loading on to or unloading from vessel.

acid and damage by other cargo.  Leakage. oil.Risks Covered  By paying extra following can be including in Clause (B): Theft. Institute Cargo Clause (C) Institute Cargo Clause (B) Institute Cargo Clause (A) War and SRCC Cover . pilferage or non-delivery. mud.  Heating and sweating.  Hook.  Rain water damage.

strike.Risks Covered  All risks except war. riots or civil commotion Institute Cargo Clause (C) Institute Cargo Clause (B) Institute Cargo Clause (A) War and SRCC Cover .

Risks Covered  Cover for war. riots or civil commotion along with any of the above clauses Institute Cargo Clause (C) Institute Cargo Clause (B) Institute Cargo Clause (A) War and SRCC Cover . strike.

Marine Insurance Policies Voyage Policy Time Policy Mixed Policy Valued Policy Open or Un-Valued Policy Floating Policy Wagering or Honour policy .

Marine Insurance Policies Voyage Policy Time Policy Mixed Policy Valued Policy Open or Un-Valued Policy Floating Policy Wagering or Honour Policy Voyage Policy is a policy in which the subject matter is insured for a particular voyage irrespective of the time involved in it. . In this case the risk attaches only when the ship starts on the voyage.

the risk shall be covered until the voyage is completed.Marine Insurance Policies Voyage Policy Time Policy is a policy in which the subject matter is insured for a definite period of time. but it may contain a 'continuation clause'. • A time policy cannot be for a period exceeding one year. The ship may pursue any course it likes. the policy would cover all the risks from perils of the sea for the stated period of time. • The 'continuation clause' means that if the voyage is not completed within the specified period. Time Policy Mixed Policy Valued Policy Open or Un-Valued Policy Floating Policy Wagering or Honour Policy . or till the arrival of the ship at the port of call.

Marine Insurance Policies Voyage Policy Time Policy Mixed Policy Valued Policy Open or Un-Valued Policy Floating Policy Wagering or Honour Policy Mixed policy is a combination of voyage and time policies and covers the risk during particular voyage for a specified period of time. Mixed policy = Voyage Policy + Time Policy .

.Marine Insurance Policies Voyage Policy Time Policy Mixed Policy Valued Policy Open or Un-Valued Policy Floating Policy Wagering or Honour Policy Valued policy is a policy in which the value of the subject matter insured is agreed upon between the insurer and the insured and it is specified in the policy itself.

Subject to the limit of the sum assured. it leaves the value of the loss to be subsequently ascertained.Marine Insurance Policies Voyage Policy Time Policy Mixed Policy Open or Un-valued policy is the policy in which the value of the subject matter insured is not specified. Valued Policy Open or Un-Valued Policy Floating Policy Wagering or Honour Policy .

Such policies are very useful to merchants who regularly despatch goods through ships.Marine Insurance Policies Voyage Policy Time Policy Mixed Policy Valued Policy Open or Un-Valued Policy Floating Policy Wagering or Honour Policy Floating Policy is a policy which only mentions the amount for which the insurance is taken out and leaves the name of the ship(s) and other particulars to be defined by subsequent declarations. .

.P.I).Marine Insurance Policies Voyage Policy Time Policy Mixed Policy Valued Policy Open or Un-Valued Policy Floating Policy Wagering or Honour Policy Wagering or Honour Policy is a policy in which the assured has no insurable interest and the underwriter is prepared to dispense with the insurable interest. Such policies are also known as ‘Policy Proof of Interest’(P.

 The voyage or period of time Valued Policy Open or Un-Valued Policy Floating Policy Wagering or Honour Policy both.  The sum or sums insured. Time Policy Mixed Policy  The subject matter insured and risk insured against. .Marine Insurance Policies Voyage Policy Contents of the Policy  The name of the assured or of some person who affects the insurance on his behalf.  The name or names of insurer or insurers.

managers.  Deliberate damage to or deliberate destruction of goods.  Loss or damage arising from nuclear weapon or other radioactive force.Risks Not Covered  Loss.  Ordinary leakage. damage or expense caused by delay and inherent vice or nature of the subject matter. charters or operators of the vessel.  Insufficiency or unsuitability of packing. ordinary loss in weight or volume or ordinary wear and tear of subject matter insured.  Loss. .  Loss due to insolvency or financial default of the owners. damage or expense caused by willful misconduct of the insured.

the insurance will be valid for 60 days from the date of arrival of the ship after which it expires. .  But on the ship reaching the destination. if the goods cannot be taken delivery of due to reason beyond the control of the consignee.Warehouse to Warehouse Clause  Warehouse to Warehouse clause states that the goods are insured from the time they leave the warehouse of the exporter and remains in force till the goods reach the goods reach the destination and are stored in a warehouse there.

Warehouse to Warehouse Clause  Thus the insurance will expire on the goods being placed in a godown in the importer’s country or on expiry of 60 days from the date of arrival of the ship whichever is earlier.  The period of 60 days is allowed only in cases where the delay is beyond the control of the importer. .

Claim Procedure  Give a notice of loss to the insurance company immediately.  Submit insurance policy. preserve all rights against third parties.  Arrange for insurance survey by the insurance company in other cases.  Prefer claims with shipping companies and other parties where required. copy bill of lading. packing list and claim bill. invoice.  Take all steps to minimize the loss. .  Arrange for survey by ship surveyors if the packages show any outward sign of damage.

Institute Cargo Clause (A). Mixed. Floating and Wagering or Honour Policy . Valued. War and SRCC Cover  Basic Risks. Cargo. Time. Fire.Hull.Institute Cargo Clause (C).To Summarize  Types of Marine Insurance. Institute Cargo Clause (B). Freight and Liability  Risks Covered.Voyage. Open or Un-Valued.Perils of Sea. Jettison and Barratry  Marine Insurance Policies.

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United India Insurance Marine Hull Insurance Premium Rating The normal basis of valuation for ocean/air consignment will be CIF + incidentals up to a percentage which is agreed upon at the inception of the policy ( normally this is 10 %) .

$40.000 Cover Percent.110% (10% included for recovery charges for the claims) Total Amount= 110%*40. Insurance Amount.United India Insurance Marine Hull Insurance For example.000= $44.000 .

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