1. Marine Insurance

2. Purpose The purpose of marine insurance is to protect ships and their cargoes against sea-risks. A MARINE INSURANCE POLICY INCLUDES:  Name of the insured  The goods transported  The risk  The voyage or time  The sum insured  The name of the insurers  Signature of insurers A MARINE INSURANCE POLICY INCLUDES:  Name of the insured  The goods transported  The risk  The voyage or time  The sum insured  The name of the insurers  Signature of insurers

3. Rate of premium In which of the following cases would the premium cost more? A ship carrying glass vase ORA ship carrying books A ship carrying goods in wooden containers ORA ship carrying goods in cardboard boxes A ship travelling from India to China ORA ship travelling from France to China A ship with new inexperienced sailors ORA ship with well – trained experienced sailors  Nature of the goods  The quality of the packing  The length of the voyage  The ship’s sea-worthiness

4. Process

5. Types of marine policy Marine Insurance Policies Hull Insurance Cargo Insurance Policy Types Voyage policies Time Policies Valued Policies Unvalued / Open Policy Floating Policy

6. Types of risks In marine insurance, an “average” is a partial loss of vessel or cargo. The at-sea risks to which a ship and her cargo are liable may be classed under two headings: particular average and general average. At sea risks Particular Average General Average

7. Types of protection Two types of protection (cover) are proposed by the insurers in sea carriage. An all risk policy (an all-in policy A policy with particular average covers both the risks of general average and particular average losses. The insurers pay claims for partial losses. A policy free from particular average Covers only the risks of general average and the insurers are not responsible for partial losses.

8. Exercise 1.The insurers will in the first place ascertain the ____________ of the vessel. a)Soundness b)Safeness c)Resilience d)Seaworthiness 2.Flags of ____________ are those of Liberia, Panama, Honduras and a few other countries. a)Complacency b)Accommodation c)Convenience d)Willingness 3.The word ____________ is now used mostly for life and marine insurance. a)Assurance b)Security c)Ensuring d)Safeguard

9. Exercise cont… 4.The hull and cargo must be duly insured with a marine ____________. a)Company b)Contractor c)Underwriter d)Subscriber 5.The contract includes a provision for non performance due to ____________. a)Force majeure b)Overpower c)Compulsion d)fortune