Professional Documents
Culture Documents
SCOPE
I. Definition of terms:
a. marine insurance
b. insurable interest
II. Insured Perils
III. Standard Contract
IV. Types of Marine Insurance Policies
V. Abandonment
VI. P & I Club
MARINE INSURANCE
a contract whereby the insurer
undertakes to indemnify the assured,
in manner and to the extent thereby
agreed, against marine losses, that is
to say, the losses incident to marine
adventure (S.1)
The Marine Insurance Act (MIA) of
1906 of United Kingdom (UK) codifies
the law and practice in marine
insurance at that time.
INSURABLE INTEREST
INSURED PERILS
Risks
attendant
in
a
marine
adventure including war, damage
caused by force majeure, etc
INSURED PERILS
STANDARD CONTRACT
TYPES OF POLICIES
FLOATING / OPEN
FLOATING / OPEN
Open Cover:
together with issue of
insurance certificate. Used for recurrent
shipments. More flexible than floating policy.
Open cover (like the slip) is NOT an insurance
policy only an undertaking to issue a floating
or specific policy.
Incorporates Institute Standard Conditions for
Open Covers.
Open Cover may be limited in time OR
permanent (cf floating policy limited to 12
months). If permanent, it has a clause to allow
cancellation by notice within a stated time.
Specifies maximum limit of insurers liability
per bottom + a location clause (cf floating
policy).
LOSS
ABANDONMENT
Assured electing to abandon the subjectmatter insured to the insurer must give
notice of abandonment in writing or
orally or in both ways - immediately
after
knowledge
of
the
reliable
information and reasonable inquiries.
Acceptance by insurer may be express
or implied (mere silence not enough).
Once accepted, irrevocable. It amounts
to admission of liability by insurer for the
loss.
ABANDONMENT
P & I CLUB
End of Topic.
Questions?