Marine and Hull Insurance

MARINE AND HULL INSURANCE SUBMITTED TO :- Prof. S. Kutty

Group Members Ashok Yadav Dimpal Mishra Harikrishna Pillai Harish Nageswaran Namrata Pandey Nitin Yadav

INTRODUCTION • One of the earliest forms on Insurance. • Standards by Lloyds are followed. • The 1st Marine Insurance company in India was called Sun Insurance Company Ltd. and it was set up it 1710. • Marine Insurance Act initiated in 1906 in England. • Marine Insurance Act came into force in India on 18th April, 1963.

TYPES OF COVER • HULL - It covers the insurance of the vessel and its equipment i.e. furniture and fittings, machinery, tools, fuel, etc. It is effected generally by the owner of the ship. • CARGO - It includes the cargo or goods contained in the ship and the personal belongings of the crew and passengers. • FREIGHT - This cover provides protection against the loss of freight. In many cases, the owner of goods is bound to pay freight, under the terms of the contract, only when the goods are safely delivered at the port of destination. If the ship is lost on the way or the cargo is damaged or stolen, the shipping company loses the freight. Freight insurance is taken to guard against such risk. • LIABILITY – In this type of cover, the insurer undertakes to indemnify against the loss which the insured may suffer on account of liability to a third party caused by collision of the ship and other similar hazards.

TYPES OF MARINE INSURANCE POLICIES •

Voyage Policy - It is a policy in which the subject matter is insured for a particular voyage irrespective of the time involved in it. In this case the risk attaches only when the ship starts on the voyage.

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Time Policy – It is a policy in which the subject matter is insured for a definite period of time. The ship may pursue any course it likes, the policy would cover all the risks from perils of the sea for the stated period of time. A time policy cannot be for a period exceeding one year, but it may contain a 'continuation clause'. The 'continuation clause' means that if the voyage is not completed within the specified period, the risk shall be covered until the voyage is completed, or till the arrival of the ship at the port of call.

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Mixed Policy - is a combination of voyage and time policies and covers the risk during particular voyage for a specified period of time.

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Valued Policy - is a policy in which the value of the subject matter insured is agreed upon between the insurer and the insured and it is specified in the policy itself.

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Wagering Policy - is a policy in which the assured has no insurable interest and the underwriter is prepared to dispense with the insurable interest. Such policies are also known as 'Policy Proof of Interest(P.P.I).

TYPES OF VESSELS COVERED • • • • • • •

Dinghies Yachts Cargo Vessels Liners Super Tankers Oil Rigs Fishing Vessels

CHARACTERISTICS OF THE COVER • • • • • •

Perils of the sea and other navigable waters. Piracy. Pollution hazard. War and Strikes clause. Accident and/or Negligence of a third party. Other Risks.

TYPES OF CARGO Cargo may be of the following types :• • • • • • • • • • •

Agricultural Products Bulk Liquids Commodities Containerized consumer products Electronic components Food and Beverage Industrial Equipment Ores and minerals Perishable goods Pharmaceuticals Project cargo Wood products

HULL INSURANCE The policy covers loss/damage to the property insured due to :• Fire or explosion; stranding sinking etc. • Overturning derailment (of land conveyance). • Collision. • General average sacrifices salvage charges.

NOT INCLUSIVE UNDER HULL INSURANCE The policy does not pay any loss/damage caused by attributable to due to the following reasons :• Deliberate damage/destruction of the vessel by wrongful act of any person. • Use of any weapon of war employing atomic / nuclear fission and or fusion. • Insolvency or financial default of the vessel owner / operators / chatterers. • War / civil war,Strike Riot or Civil Commotion. • Any terrorist or person/s acting with political motive.

COVERAGE OF HULL INSURANCE POLICIES • Hull policies in most instances will cover all damage not specifically excluded by a policy. In rare cases, insurance carriers will sell policies that cover damage from incidents that are named. If a policy is "all risk" the boat owner or agent should read the list of exclusions to determine what is not covered. Common exclusions include damage from normal wear and tear, insects, zebra mussels and marine life. Some policies may exclude damage to machinery, such as engines.

BROWN WATER vs. BLUE WATER • Hull policies often are distinguished by whether they cover incidents in brown water or blue water. • Brown water policies refers "to hull and liability coverage for tugboats, barges and other types of commercial vessels and businesses that operate primarily on or near inland and coastal waterways," according to Marine Insurance House. • Blue-water denotes ocean-going ships and larger vessels used in international shipping or trade. In addition to blue water and brown water policies, some marine policies will have navigation clauses which stipulate where a boat owner can take the insured vessel