10 Questions
What type of situation involves a maritime contract?
When there is a danger threatening the parties involved
Who are the parties involved in a maritime contract?
The shipowner, cargo owner, and carrier
What is the purpose of an extraordinary sacrifice or expense?
To distribute the loss fairly among parties
When does a voluntary sacrifice or expense occur?
When there is a real danger threatening the parties involved
What type of action is considered in a maritime contract?
A voluntary and reasonable expense incurred in a time of danger
What type of marine insurance protects the body of the ship as well as its machinery, provisions, and equipment required for navigation?
Boat insurance
What is covered under cargo insurance, except for?
Personal belongings of the crew
Why is marine insurance important in international trade?
It reduces the risk of financial loss due to maritime perils
What is the primary purpose of warehouse to warehouse coverage?
To cover goods during transportation from one warehouse to another
What is one of the risks that marine insurance helps to mitigate?
All of the above
Study Notes
Types of Marine Insurance Policies
- Marine insurance policies cover risks to goods until they reach the consignee's warehouse, provided the warehouse is within the port area, or upon the expiry of thirty days from the date of their unloading at the port, whichever occurs first.
- A "warehouse to warehouse" clause can be added to the policy to extend coverage.
Types of Marine Losses
- Marine losses are divided into two main categories: Total Loss and Partial Loss.
Total Loss
- A total loss occurs when the subject matter of the insurance is completely destroyed.
- A total loss also occurs when the insured object is damaged to the extent that it is no longer the same as the insured object.
- If the insured is unable to recover the insured object, it is considered a total loss.
- The owner of the insured interest bears the responsibility for this loss.
- Total loss does not fall within the concept of general average.
Partial Loss
- Not explicitly defined in the text, but implied as a category of marine losses that is not total loss.
Cargo Insurance Applications
- Cargo insurance applications typically include details such as:
- Type of goods being insured
- Sum insured (amount of insurance coverage requested)
- Shipping method (mode of transportation for the goods, e.g., container ship)
Types of Marine Insurance
- Marine insurance comes in various forms, including:
Boat Insurance
- Protects the ship's body, machinery, provisions, and equipment required for navigation
Cargo Insurance
- Covers all goods transported on the ship, excluding personal belongings and consumables on board
Learn about the two main categories of marine losses: total loss and partial loss. Understand the definitions and implications of each.
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