Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo with which the property is transferred, acquired, or held between the origin and destination. Cargo insurance is a sub-branch of marine insurance, although maritime insurance also includes property affected by Onshore and Offshore, (container terminals, ports, oil bases, pipelines), Hull, Marine Casualty and Marine Liability. When goods are transported by post or courier, shipping insurance is used instead.
Video Marine insurance
History
Maritime insurance is the earliest type of insurance, with origin in Greek and Roman lending. Separate marine insurance contracts were developed in Genoa and other Italian cities in the fourteenth century and spread to northern Europe. Premiums vary with intuitive estimates of the variable risk of seasons and pirates. The modern marine insurance law comes from Lex mercatoria (legal trader). In 1601, a separate detention room separate from the other Courts was established in England. By the end of the seventeenth century, the growing importance of London as a trading center was the increasing demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee shop on Tower Street in London. It soon became a popular venue for boat owners, merchants, and boat captains, and thus a reliable source of the latest shipping news.
Lloyd's Coffee House is the first marine insurance market. It becomes a meeting place for parties in the shipping industry that want to insure cargo and ships, and those who are willing to bear the business. This informal beginning leads to the creation of Lloyd's of London insurance market and some related shipping and insurance companies. Members who participated in the insurance arrangements eventually formed a committee and moved to the Royal Exchange at Cornhill as the Society of Lloyd's. The establishment of an insurance company, a growing infrastructure of specialists (such as shipbrokers, admiralty lawyers, bankers, surveyors, appraisers of losses, general average regulators, et al. ), and the growth of the British Empire gave British law in this field which largely retains and forms the basis of almost all modern practice. Lord Mansfield, Lord Chief Justice in the mid-eighteenth century, began the merger of law merchants and the principles of common law. The growth of the London insurance market led to further standardization of policy and judicial precedence developing marine insurance laws. In 1906, the Marine Insurance Act codified the previous general law; this is a very short and concise work. Although the title of the Act refers to marine insurance, general principles have been applied to all non-life insurance. In the 19th century, Lloyd's and the Institute of London Underwriters (group of London insurance companies) developed among them a standard clause for the use of marine insurance, and this has been maintained ever since. This is known as the Institute Clause because the Institute covers the cost of their publications. From marine insurance, grow non-marine insurance and reinsurance. Marine insurance traditionally forms most of the businesses covered in Lloyd's. Currently, marine insurance is often grouped with Aviation and Transit (cargo) risks, and in this form is known as the 'MAT' acronym.
It is common for marine insurance agents to compete with the offers provided by the local insurance company. These specialist agents often fill the market gap by providing protection against the risk of unidentified or unclear marine insurance that would be difficult or impossible to find insurance coverage. These institutions can become very large and eventually become market makers. They operate best when day to day management are independent of the insurance company that provides them with capital to bear the risk on their behalf.
Maps Marine insurance
Practice
The Marine Insurance Act includes, as a schedule, a standard policy (known as the "SG form"), which the parties are free to use if they wish. Since every term in the policy has been tested through at least two centuries of judicial precedent, its policy is meticulous. However, it is also expressed in somewhat archaic terms. In 1991, the London market produced a new standard policy word known as the 91 MAR form using the Institute Clause. The MAR form is merely a general statement of insurance; The Institute clause is used to specify insurance details. In practice, policy documents typically consist of a MAR form used as a cover, with clauses clipped inside. Typically, each clause will be stamped, with a stamp overlap both into the inner cover and other clauses; this practice is used to avoid substitution or clause removal. since marine insurance is usually borne on the basis of a subscription, the MAR form begins: We, the Guarantor, agree to bind each of them to its own part and not to others [...] . In legal terms, the obligations under the policy are some and not shared , that is, the underwriters are liable jointly, but only for their share or proportion of risk. If an underwriter has to default, the rest is not responsible for taking part of his claim. Typically, marine insurance is divided between vessels and cargo. Ship insurance is commonly known as "Hull and Machinery" (H & M). A more restricted form of cover is "Total Loss Only" (TLO), commonly used as a reinsurer, which covers only total ship losses and no partial loss. The cover can be either "travel" or "time". The "trip" basis includes transit between ports specified in the policy; the basic "time" includes a period, usually one year, and more generally.
Protection and redress
Marine policies typically cover only three quarters of the insured's liability to third parties (Time Clauses Hulls Institute 1.10.83). Typical obligations arise in connection with collisions with other vessels, known as "run down" (collisions with fixed objects are "allitions"), and accidental deletion (accidents can serve to block ports, for example). In the 19th century, boat owners were united in a joint underwriting club known as the Club of Protection and Indemnity (P & I), to insure the remaining one-quarter responsibility among themselves. These clubs still exist today and have become models for other special and non-marine and non-marine relationships, for example in relation to oil pollution and nuclear risk. The club works on the basis of approval to accept the ship owner as a member and earn a premium "call". With the accumulation of funds, reinsurance will be purchased; however, if the loss experience is not profitable, one or more "additional calls" can be made. The club also usually tries to build reserves, but this puts them at odds with their mutual status. Because liability regimes vary across the world, insurance companies are usually careful to limit or exclude the obligations of the American Jones Act.
Actual total losses and constructive total losses
These two terms are used to distinguish the level of proof that the ship or cargo has been lost. An total actual loss occurs when the damage or repair cost is clearly equal to or exceeds the property value. A constructive total loss is a situation where the cost of repair plus rescue costs is equal or exceeds the value. The use of these terms relies on the remaining properties to assess the damage, which is not always possible in a sea ship's loss or in a total theft situation. In this case, marine insurance differs from non-marine insurance, in which the insured is required to prove his loss. Traditionally, in law, marine insurance is seen as an insurance of "adventure", with insurance having shares and interest in vessels and/or cargo rather than just interest in the financial consequences of the subject's survival.
The term "total constructive losses" was also used by the United States Navy during World War II to describe naval vessels damaged in such a way that they could not be repaired economically. This is most often applied to the destroyers of the 1945 type, the last year of the war, many of which were destroyed by kamikaze. At this time, quite a number of ships are available for war that can be partially disposed of if badly damaged.
Average
The Average in the Marine Insurance Terms is a "fair share of all parties with an interest in such loss or loss."
General Averages are separate for Marine Insurance. In order for the General Average to be properly stated, 1) there must be an event that is beyond the control of the shipowner, endangering all adventures; 2) there must be voluntary sacrifice, 3) something must be saved. Voluntary sacrifice may be the release of a particular load, the use of a tugboat, or safety, or damage to the ship, whether it is, a voluntary foundation, consciously working with a machine that will cause damage. "General Average" requires all parties involved in maritime (Hull/Cargo/Freight/Bunker) efforts to contribute to making voluntary sacrifices good. They share the cost in proportion to 'risky value' in adventure. "Certain averages" is a term applied to losing a portion of either hull or cargo.
Average - is a situation where the insured has less insurance, that is, insuring an item with less value, the average will apply to reduce the amount of claims to be paid. An average adjuster is a marine claims specialist who is responsible for adjusting and giving average general statements. The Average Adjuster in North America is the 'Average Adjustment Association' member To ensure fairness of adjustment, the average General Manager is appointed by the shipowner and paid by the insurer.
Advantages, deductibles, retention, co -insurance, and franchise
The excess is the amount to be paid by the insured and is usually expressed as the first amount due, up to the ceiling, in case of loss. Excess may or may not be applied. This can be expressed in monetary terms or percentages. Excess is usually used to prevent moral hazards and remove small claims, which are very expensive to handle. The term "excess" signifies "deductible" or "retention".
The co-insurance, which normally governs the reinsurance of a non-proportional agreement, is the surplus expressed as the proportion of claims in percentages and applied to the entire claim. Co-insurance is a penalty imposed on the insured by the insurance operator for not reporting/stating/insuring the value of tangible property or business income. The penalty is based on the percentage stated in the policy and the amount reported. For example: a vessel worth $ 1,000,000 has an 80% co-insurance clause but is insured for only $ 750,000. Since the insurance value is less than 80% of the true value, while suffering losses, the insurance payments will be subject to under-reporting penalty, the insured will receive 750000/1000000 (75%) of the deducted claims deducted.
Tonners and chinamen
This is an outdated early reinsurance form. Both are technically illegal, because they have no insurable interest, and therefore have no legal force. Policies are typically P.P.I. (Policy is Evidence of Interest). Their usage continued into the 1970s before they were banned by Lloyd's, the main market, by that time, they had become nothing more than a crude bet. "Tonner" is just a "policy" that sets the loss of global gross tonnage for a year. If the loss is achieved or exceeded, the policy is paid. A "chinaman" applies the same principle but vice versa: thus, if the limit is not reached, the policy is paid.
Specialist policy
Specialist policies exist, including:
- New development risks: This includes the risk of damage to the stomach while it is under construction.
- Open Cargo or Sender Interest Insurance : This policy may be purchased by carrier, delivery broker or sender, as a scope for the sender. In the event of loss or damage, this type of insurance will pay the actual shipping value, not just the amount of law the carrier is responsible for.
- Cruise Ship Insurance: Pleasure craft insurance is commonly known as "yacht insurance" and covers liability coverage. Smaller ships such as cruise ships and fishing vessels are usually borne on the basis of "binding authority" or "line line".
- War risk: General hull insurance does not cover the risk of ships sailing into war zones. A typical example is the risk for tankers that sailed in the Persian Gulf during the Gulf War. War risk areas were formed by the London-based Joint War Committees, which recently (when?) Moved to include the Malacca Strait as an area of ​​war risk due to piracy. If an attack is classified as "melee" then it will be covered by war risk insurance.
- Value Enhancement (IV): Enhancement Value Closure protects the shipowner against any difference between the insured value of the vessel and the market value of the vessel.
- Insurance is due: This is a form of insurance that is now very obsolete due to advances in communication. This is an early form of reinsurance and is bought by an insurance company when a ship arrives late at its destination port and there is a risk that he may have been lost (but, altogether, maybe just postponed). Insurance matures from Titanic well-known under Lloyd's home line.
- Cargo insurance: Cargo insurance is covered by the Cargo Clauses Institute, with coverage at A , B , or C base, A has the widest scope and the most restricted C . The precious cargo is known as the specie. The Institute clause is also available for certain types of cargo insurance, such as frozen food, frozen meat, and certain commodities such as bulk oil, coal and hemp. Often these insurance conditions are developed for certain groups as well as the Federation of Oil Associations, Seeds and Fats Association Federation (FOFSA) which has been agreed with the Oil Federation, Seeds and Fat Associations and Provisions of Commodities Trading used for insurance delivery of chocolate, coffee, cotton, fat and oil, leather and leather, metals, oil seeds, refined sugar, and tea and has been approved by the Federation of Commodity Associations.
Warranties and conditions
The uniqueness of marine insurance, and general insurance law, is the use of the terms condition and warranty . In English law, a condition usually describes part of a contract that is fundamental to the performance of the contract, and, if violated, the non-infringing party is entitled not only to claim compensation but to terminate the contract on the grounds that it has been rejected by the offending party.
Conversely, the warranty is not fundamental to contract performance and warranty infringement, while generating a claim for damages, not granting the rights to non-infringing parties to terminate the contract. The meaning of these terms is reversed in the law of insurance. Indeed, a warranty if not strictly met automatically will free the insurance company from further responsibility under an insurance contract. The guaranteed party has no defense of its violation, unless he can prove that the insurer, by its conduct, has waived its right to prosecute, possibly provided in article 34 (3) of the 1906 Marine Insurance Act (MIA). Furthermore, in the absence of express warranties, MIA will imply them, particularly guarantees for the supply of sailing vessels at the commencement of shipping in the shipping policy (art. 39 (1)) and insurable shipping legality assurance (section 41).
Balance and rewards
The term "salvation" refers to the practice of providing relief to the ship in distress. Regardless of the consideration that the sea is traditionally a "safe haven", with sailors who are honored to provide assistance as required, it is clear that the interests of underwriters are to encourage assistance to ships that are at risk of damage. A policy will usually include a "demand and work" clause that will cover the reasonable costs incurred by the shipowner in avoiding greater losses.
At sea, the ship in distress will usually approve "Lloyd's Open Form" with a potential savior. Lloyd's Open Form (LOF) is a standard contract, although other forms exist. The Lloyd's Open Form entitled "No cure - no payment"; the point is that if the rescue attempt does not work, no rewards will be made. However, this principle has been weakened in recent years, and rewards are now permitted in cases where, although ships may have drowned, pollution has been avoided or mitigated.
In other circumstances "saviors" can use the term SCOPIC (the latest and commonly used translation is SCOPIC 2000) different from LOF, these terms mean that salvor will be paid even if the rescue attempt is unsuccessful. The amount received by salvor is limited to cover the cost of the rescue effort and 25% above it. One major negative factor in applying SCOPIC (in the name of salvor) is that if the rescue attempt is successful, the amount that can be claimed by salvor under section 13 of the LOF is discounted.
Lloyd's Open Form, once approved, allows rescue efforts to begin immediately. The extent of the award is determined later; although the standard words refer to Chairman Lloyd who mediates each award, in practice the role of the arbitrator is given to the QC Admiralty specialist. A ship captured in war is called a gift, and the kidnappers are entitled to a prize money. Again, these risks are covered by standard policies.
Marine Insurance Act, 1906
The most important sections of this Law include: Ã,§4: the insurable interest-free policy is void: Ã,§§17: imposes an obligation on the insured uberrimae fide (as opposed to of the caveat emptor, that is, that the question should be answered honestly and the risk is not misunderstood: Ã,§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§: 18: the insurance company has an obligation to disclose all relevant with acceptance and risk rating. Failure to do this is known as non-disclosure or concealment (there is a small difference in both terms) and make the insurance can be removed by the insurance company: Ã,§33 ( 3): If [warranty] is not [appropriately] fulfilled, then, subject to any provision in the policy, the insurance company is exempt from responsibility since the date of breach of warranty, but without prejudice to any liability issued by it before the. : Ã,§34 (2): if the guarantee has been violated, there is no defense for the insured that the violation has been fixed, and the guarantee is complied with, before loss.:Ã,§34(3): warranty infringement may be < i> abandoned (ignored) by the insurer: Ã,§39 (1): implied warranties that the vessel must be eligible to sail at the start of its voyage and for that purpose ( shipping policy only): Ã,§39 (5): there is no guarantee that the ship should be eligible to sail during the policy period ( time policy). However, if the conscious party permits the ship to be unsuitable for sailing, the insurer is not liable for losses caused by improperity: §§50: a policy may be assigned. Typically, a shipowner may assign the benefits of a policy to ship-mortgagor: Ã,§Ã,§60-63: deal with constructive total loss issues. The Insured may, by notice, claim a constructive total loss with an insurance company entitled to a vessel or cargo if it will later arise. (On the other hand, the actual total loss describes the physical damage of the ship or cargo.): Ã,§79: deals with subrogation, ie the insurance company's right to stand on the insured shoe. and restore the rescue for its own sake. Schedule 1 of the Act contains a list of definitions; Schedule 2 contains the words of the model policy.
Basic Responsibility & amp; Deductibles
Maritime insurance is always written on the basis of events, including claims arising from damages or injuries occurring during the policy period, regardless of when a claim was made. Policy features often include expanding coverage for items typical for marine business such as responsibility for container damage and debris removal.
The only deductible is the first claim amount held by the policyholder. Sometimes there can be zero deductible but in most cases deductible applies to claims made under marine insurance policy.
See also
- CEFOR
- Insurance history
- Classification society
- The legal definition of junk
- Inland sea insurance
- Sea (legal) affordability
References
Bibliography
- Bird, J. Modern Bird Insurance Law . Sweet & amp; Maxwell, 2004. (ISBNÃ, 0-421-87800-2)
- Donaldson, Ellis, Wilson (Editor), Cooke (Editor), Lowndes and Rudolf: Average General Law and York-Antwerp Rules . Sweet & amp; Maxwell, 1990. (ISBNÃ, 0-420-46930-3)
- John, A. H. "The London Assurance Company and the Eighteenth Century Marine Insurance Market," Economica New Series, Vol. 25, No. 98 (May 1958), p. 126-141 at JSTOR
- Roover, Florence Edler de. "Preliminary Example of Marine Insurance," Journal of Economic History Vol. 5, No. 2 (Nov. 1945), pp.Ã, 172-200 at JSTOR Wilson, DJ, Donaldson (1997). Lowndes and Rudolf: General Average and York-Antwerp Rules . British Shipping Law Library: Sweet & amp; Maxwell. ISBN 0-421-56450-4. < span> CS1 maint: Many names: list of authors (links)
External links
- a UK case related to legal definition ( The No 1 Dae Bu )
Source of the article : Wikipedia
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