Marine Insurance

(M.I Act 1963)

Contract of Marine Insurance

A contract of marine insurance is a contract whereby :-

An insurer undertakes to indemnity the assured against marine losses – that is to say, the losses incidental to marine adventure.

The contract may , by its express terms or by usage of trade , be extended so as to protect the assured against losses on land waters or any land risk which may be incidental to any sea voyage

Marine adventure

There is a marine adventure when:-

any ship, goods or moveable property (insurable property), earning etc is exposed to maritime peril.

Maritime peril

“Maritime peril”- means the perils consequent on or incidental to, the navigation of the sea.

e.g., Fire, war perils, pirates, captures, seizers etc.

Insurable Interest

A person has insurable interest if he is interested in a marine adventure in consequence of which he may benefit by the safe arrival of the insurable property or be prejudiced by its loss, damage or detention.

Insurable values:-

It is the amount of valuation of an insurable interest for the purpose of insurance.

Discloser:-

A contract of marine insurance is a contract of uberimae fidci which is based on at most good faith.

Types of Marine Policy 1) Voyage policy 2) Time – policy 3) Mixed – policy 4) Valued policy5) Open or unvalued policy 6) Floating policy 7) Wagering policy – no interest – void warranties in a contract of M.I:-a) Express Warranties b) Implied Warranties

Voyage

The voyage to be performed by the ship must be described in the policy. The ship must follow the course specified in the policy.

If the ship deviates of the voyage the insurer is discharged unless the deviation is excuses

If there is change of voyage , the insurer is discharged.

Losses:- Total Loss a) Actual total loss b) constructive total loss c) partial loss Rights of Insurer on payment 1) Right of subrogation 2)Right of contribution