Marine Insurance – Insurance Law and Practice Important Questions
Question 1.
Write a note on warranties in marine insurance.
Answer:
A warranty means a condition or a stipulation, in a Policy the breach of which entitles the Insurer to make the insurance policy altogether invalid and void and any loss may not be paid under the Policy and this ¡s so even though the
breach arises through circumstances beyond the control of the warrantor.
The following warranties are generally recognised under the Marine Insurance Act:
- warranty of neutrality;
- warranty of good safety;
- warranty of seaworthiness of the shíplvessel;
- where the policy relates to a voyage performed in different stages, during which the ship require different kinds of or further preparation or equipment for the purpose of that stage;
- ka time policy there Is no implied warranty that the ship shall be sea warranty at any stage of the adventure but wherewith the privity of the assured, the ship Is sent to sea in a unseen worthy condition, the insurer is not liable for loss attributable to unseen worthiness;
- in a voyage policy on goods or other movables, there is an implied warranty that at the commencement of the voyage the ship is not only seaworthy as a ship but also that it is reasonably fit to carry the goods or other movables to the destination by the party;
- warranty of legality;
- warranted that goods are packed in suitable condition to withstand the normal transit damages.
Question 2.
Which Section of the Marine Insurance Act, 1963 talks of a ‘valued policy’? Define. (5 marks)
Answer:
Section 29 of the Marine Insurance Act, 1963 talks of a valued policy:
- A Valued Policy is a policy which specifies the agreed value of the subject matter insured.
- Subject to the provisions of this Act and in the absence of fraud, the value fixed by the Policy is, as between the Insurer and the Assured conclusive of the insurable value of the subject intended to be insured, whether the loss be total or partial.
- Unless the policy otherwise provides, the value fixed by the policy is not conclusive for the purpose of determining whether there has been a constructive total loss.
U/s 30 an unvalued policy is a policy which does not specify the value of the subject matter insured but subject to the limit of the sum insured leaves the insurable value to be subsequently ascertained.
Question 3.
What do you mean by Marine Insurance? Explain different types of Marine insurance.
Answer:
Marine Insurance:
A contract of marine insurance is an agreement whereby the insurer undertakes to indemnify the insured, in the manner and to the extent thereby agreed, against transit losses, that is to say losses incidental to transit. A contract of marine insurance may by its express terms or by usage of trade be extended so as to protect the insured against losses on inland waters or any land risk which may be incidental to any sea voyage.
In simple words the marine insurance includes.
- Hull insurance which is concerned with the insurance of ships (hull, machinery, etc)
- Cargo insurance which provides insurance cover in respect of loss of or damage to goods during transit by rail, road, sea or air.
Hull Insurance:
There are various types of policies issued to cover different types of ships/boats depending on their function and usage of the vessel.
Sundry vessels:
There are separate policies designed for fishing vessels, Sailing vessels, inland vessels (barges, pontoons, flats, floating cranes, tugs, ferries, passenger vessels etc. Other types of insurance include covers for jetties, wharves etc and vessels plying in inland waters such as lakes, rivers canals etc.
Liners/Tankers/Bulk carriers/Dredgers:
There are many types of vessels and policies have been designed to cover all these types of vessels- but primarily depend on the function and area of operation for the premium rating etc.