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11 Cards in this Set

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Modern Ocean Marine policies may be written to include various combinations of four major coverages:

Hull Coverage


Cargo Coverage


Freight Insurance


Protection and Indemnity (P&I)

Agreed Value Basis

Most policies are written on this basis meaning that the insured and the insurer agree on the the amount of coverage applicable to the vessel

Implied Warranties that are not written in the contract, but carry the same value and weight are...

Seaworthiness: The vessel must be in seaworthy condition and not overloaded, and have a competent captain and crew

Conditions of Cargo

The cargo owner is obligated to guarantee that the cargo is sound and is properly packed.

Legality

The enterprise must be a lawful one, and must not involve contraband, smuggling, or other illegal activity.




Example: Matt could not expand his current business and obtain insurance for his shipments

No deviation in voyage

voyage must follow an agreed route, with no change in destination and no unnecessary delays

Hull Coverage

Hull policies insure against damage to, or loss of, the ship itself. Policies may be issued on a single vessel or fleet basis




The coverage also includes a limited form of limited liability coverage under a collision clause (known as the running down clause) which covers collision damage to another vessel or its cargo but does not cover bodily injury, or damage to harbors, piers, or other property.

Jettison

is the term used to throw cargo overboard to save the ship or crew.

The owner of the ocean cargo may purchase _____ or ______ policy, or may purchase a longer term open cargo policy

single trip,




voyage

What is the charge made for SHIPPING cargo?

FREIGHT




Freight insurance would be an indirect loss insurance.




Someone would still risk losing the income to be made or charges paid for moving that cargo!

Protection and Indemnity Coverage provides marine legal liability insurance... what does that mean?

this usually agrees to pay for liability legally imposed on the insured and arising out of the operation of the vessel




Like a loss of a life