Marine Insurance Flashcards
What is marine insurance?
Marine insurance basically includes the loss or damage of:
(1) Vessels for transportation or navigation
(2) Person or property in connection to marine or transporation
(3) Jewelries in course of transportation
(4) Instrumentalities and aids to navigation or transportation.
It also includes insurance against or against legal liability of the insured for loss, damage, or expense incident to operation of any vessel.
What is concealment in marine insurance?
In marine insurance, concealment is the failure to disclose any material fact or circumstance which in fact or law is within, or which ought to be within the knowledge of one party and of which the other has no actual or presumptive knowledge.
What is the rule on concealment in marine insurance?
Generally, the concealment of a material fact entitles the injured party to rescind the contract for insurance. However, concealment of any matter below does not avoid the policy but merely exonerates the insurer form a loss resulting from the risk concealed.
(1) National character of the insured
(2) Liability of the thing insured to capture and detention
(3) Liability to seizure from breach of foreign laws of trade
(4) The want of necessary documents
(5) The use of false and simulated papers
What is the effect of false representation by the insured in marine insurance?
Any intentional misrepresentation of a material fact made with fraudulent intent avoids the policy.
If the misrepresentation is unintentional or fraudulent but the fact misrepresented is material to the risk, the insurer may also rescind the contract from the time the representation becomes false.
What is the rule on the liability of the insurer in marine insurance in respect of its implied warranties?
In marine insurance, there are conditions upon the insurer’s liabilities for the risks assumed, termed as implied warranties. The insurer will not be liable for any loss under his policy in case the vessel is:
(1) Unseaworthy at the inception of the insurance
(2) Deviates from the agreed voyage
(3) Engages in an illlegal venture.
When is a ship considered as seaworthy?
A ship is seaworthy when reasonably fit to perform the service and to encounter the ordinary perils of the voyage contemplated by the parties to the policy.
What is the rule regarding the ship’s seaworthiness?
The warranty of seaworthiness is complied with if the ship be seaworthy at the time of the commencement of the risk.
