TRANSPORT INSURANCE LAW Lecutre 1 – introduction 11 OCT 2016 doc.dr.sc. IVA SAVIĆ Department for Maritime and Transport Law isavic@pravo.hr

overview (Introduction ) 18 OCT > Cargo Insurance 25 OCT > Professional Liability Insurance in Road Transport 8 NOV > Professional Liability Insurance in Rail Transport 22 NOV > Aviation Insurance I 29 NOV > Aviation Insurance II -------------------------------------------------------------------------------------------------------------------------------------- Marine Insurance I Marine Insurance II Marine Insurance III Protection and Indemnity Insurance Compulsory Marine Insurance Reinsurance

introduction Trade – transit of goods Risk Delay Damage Loss Protection? Compensation liability limitation ► insurance SALES TRANSPORT INSURANCE

Role of transport insurance (TI) Marine insurance – first insurance in the history (ancient cultures 500-300 yrs BC) follows growth of cargo shipping and technological development of maritime transport TI: insuring a variety of material interest involved in transport chain marine insurance – special legal regime, specific institutes (marine insurance law- maritime law)

SOURCES OF TIL Regulations Contracts Principles Customs Court practice A) insurance legal regime International conventions National regulation Standards Conditions of transport associations B) business organization

clasification Hull Cargo Liability Transport branches road rail air sea inland waterways

TIL – Terminology Insured object insurable interest Insured risk Insured value (amount) premium Compensation - indemnity excess and franchise clauses

Princples of transport insurance Principle of Uberrimae fidei (Utmost Good Faith) insurance contract must be signed by both parties (insurer and insured) in an absolute good belief person getting insured must willingly disclose and surrender to the insurer his complete true information regarding the subject matter of insurance Transport insurance: like a professional Principle of Insurable Interest physical existence of the insured object gives him some gain but its non- existence will give him a loss > when the damage of the insured object occurs, the insured person must suffer some financial loss Possible for damage occuring before the contract was signed - MIA 1906 „lost or not lost”, if there is no (fraud)

PRINCIPLES (part 2) Principle of Indemnity protection against unpredicted financial losses arising due to future uncertainties Certain amount of money paid for material loss on insured object as a result of insured risk insurance policy shall not provide compensation to the policyholder that exceeds their economic loss Scope of compensation is defined by the policy same financial state as the one prior to the loss Cumulation of requests = limit: loss suffered *total loss