Course: Marine Insurance
A. Principles of Marine Insurance Law
Introducing the essential features and peculiarities of the law of marine insurance, with particular
emphasis on the Marine Insurance Act 1906 as well as an introduction into carriage of goods by sea.
Topics Include
Principles of the law and the Marine Insurance Act
Formation of the contract
Duty of utmost good faith
Warranties
The requirement of insurable interest
Risks covered
Salvage and general average
The duty of assured clause
Causation
Types of losses and their indemnification
The making of a claim
B. Special Categories of Marine Insurance Cover
Will study to deal with the basic insurance cover for the maritime property of the ship owner and
cargo owner as well as for protection against other economic risks, such as loss of earnings or loss of
the vessel as security for financing purposes.
There are comprehensive explanations of the perils insured against, including collision liabilities,
which are, by tradition, covered under the vessels Hull & Machinery insurance. A brief introduction
to Protection & Indemnity Clubs (P&I) clubs will be studied here
Hull & Machinery insurance
o Time covers
o Voyage covers
Cargo insurance
A, B, and C clauses (1983 and 2009 versions)
Cargo insurance and international sales contracts
War and strikes insurance
Freight insurance
Mortgages interest insurance
Builders risk insurance
Introduction to third party liability insurance and P&I Clubs
C. P&I Clubs and Mutual Insurance
An overview and detailed introduction into the world of mutual liability insurance as provided by P&I
Clubs. The system of mutual Clubs has existed for nearly 300 years - initially with the Hull Clubs and,
for the last 150 years, the Protection & Indemnity (P&I Clubs). This method of providing liability
insurance to ship operators continues to dominate the market with over 90% of the worlds deep sea
ships entered in one of 13 P&I Clubs of the International Group. This module will explain how the P&I
Clubs came into existence and why they continue, fundamentally, to operate in very much the same
way and provide similar cover as in those early days.
Concept of mutual insurance
History, organisation, management and role of P&I Clubs
Relationship between a Club and its members
Legal status of the Rule Book
Categories of cover provided by Clubs
Specialist Clubs and special covers
Relationship between Club and market covers
Reinsurance
D. Marine Reinsurance
Insurance is a way of transferring the economic consequences of a risk to another party, the insurer.
Insurers in their turn further transfer andspread the risk to other insurers by reinsurance. In the
current economic climate, the relationship between primary insurance and reinsurance will be more
important than ever for all involved. The specialised area of reinsurance will be covered
comprehensively in this module
Nature and purpose of reinsurance
Reinsurance methods in practice
Different categories of reinsurance contracts Facultative and treaty
Reinsurance intermediaries
Closing reinsurances
Relationships between primary and reinsurance contracts
Relationship between assured/reassured/ reinsurer
Incorporation of terms from the direct policy
E. Claims
The more practical procedures and implications related to filing a claim under a marine insurance
policy are described. Claims handling is an issue for both the insured and the insurer regardless of
whether the insurance relates to hull or machinery interests, cargo or shipowners liability
Damage and casualty reporting
Notice of loss to insurers
Sue and labour
Surveys
Collecting evidence
Salvage
Repair
Recoveries
The role of average adjusters
Average agents
Surveyors
Classification societies
Brokers
Loss prevention
Referred Text: Law-of-Marine-Insurance-Susan-Hodges
