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Rojas, Rina Gierza - LLB 3A

MARINE INSURANCE
3. INSURANCE OVER THE CARGO
What does marine insurance include? a) Trip or Single Risk Cargo Policy - covers a particular
shipment of goods.
a. Vessels, goods, freight, cargo, merchandise, profits, b) Open Cargo Policy - shipper insures all its shipments
money, valuable papers, bottomry and respondentia, as described in the policy irrespective of route, time of
and interest in respect to all risks or perils of shipment, or class of approved vessel.
navigation;
b. Persons or property in connection with marine 4. INSURANCE OVER THE FREIGHTAGE AND INCOME
insurance; Covers loss of freightage for failure to complete the
voyage or delivery of the goods.
c. Precious stones, jewels, jewelry and precious metals
whether in the course of transportation or otherwise; II. INLAND MARINE INSURANCE
and Cover primarily the land or over the land
d. Bridges, tunnels, piers, docks and other aids to transportation perils of property shipped by railroads,
navigation and transportation (Sec. 99) motor trucks, airplanes, and other means of
Cargo can be the subject of marine insurance, and once transportation. Inland marine insurance include
it is entered into, the implied warranty of seaworthiness insurance over cargoes, infrastructure and floaters.
immediately attaches to whoever is insuring the cargo,
whether he be the ship owner or not. (Roque v. IAC, a) Insurance policies over goods that are being
G.R. No. L-66935, Nov. 11, 1985) imported or exported.
b) Insurance over means of and infrastructure for
transportation.
KINDS OF MARINE INSURANCE c) Personal Property Floaters
There are two basic types of Marine Insurance, namely:
1. Ocean Marine Insurance; and RISK INSURED AGAINST
2. Inland Marine Insurance
It is only PERILS OF THE SEA which may be
I. OCEAN MARINE INSURANCE insured against unless perils of the ship are covered by
An insurance against risks connected with an all-risk policy. The perils of the sea must be the
navigation, to which a ship, cargo, freightage, profits, proximate cause of the loss in order that the insurer
and other insurable interest in movable property, may be held liable.
maybe exposed during a certain voyage or a fixed
period of time. The insurer does not undertake to insure against perils
of the ship. The purpose of a marine insurance is to
DIFFERENT KINDS OF OCEAN MARINE INSURANCE: secure an indemnity against accidents which may
happen and not against event which must happen (La
1. INSURANCE OVER THE VESSEL Razon Social Go Taiocco y Harmanos v. Union
a) Hull Policies - for loss or damage to vessel. Insurance Society of Canton Ltd. G.R. No. 13983, Sept
b) Builder's Risk Policy - relates to the construction, 1, 1919
conversion and repair of the hull.
c) Port Risk Policy - covers perils to which the vessel ----
might be exposed while in port including fire, collision, Bar Question (1998)
or damage while being transferred from one dock to Marine Insurance; Peril of the Ship vs. Peril of the Sea
another.
d) Fleet Policies - insurance that covers fleets of ships A marine insurance policy on a cargo states that the
e) Full Form Policy - covers both total and partial loss. insurer shall be liable for losses incident to perils of the
f) Total Loss Only Policy - insures total loss only and is sea. During the voyage, seawater entered the
resorted to for the purpose of obtaining favourable compartment where the cargo was stored due to the
premium rate. defective drainpipe of the ship. The insured filed an
action on the policy for recovery of the damages caused
2. INSURANCE AGAINST LIABILITY to the cargo. May the insured recover damages? (5%)
a) Running Down Clause - insures liability for collision.
b) Marine Protection and Indemnity Insurance - SUGGESTED ANSWER:
insurance against, or against legal liability of the insured No. The proximate cause of the damage to the cargo
for the loss, damage, or expense incident to ownership, insured was the defective drainpipe of the ship. This is
operation, chartering, maintenance, use, repair, or peril of the ship, and not peril of the sea. The defect in
construction of any vessel, craft or instrumentality in the drainpipe was the result of the ordinary use of the
use of ocean, or inland waterways. ship. To recover under a marine insurance policy, the
c) Excess Protection and Indemnity Insurance - covers proximate cause of the loss or damage must be peril of
damage or liability in excess of the value of the ship the sea.
which is the limit of liability under the real and
hypothecary nature of maritime law and its consequent
limited liability rule.
d) Water Pollution Liability - covers the liability of the
carrier in water pollution.

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