1. MARINE INSURANCE

2. MARINE INSURANCE
Definition
assurer:
insured:

3. Perils
Perils
the sea and damage:
fire
errors of navigation
jettison

4. Perils war,riots: pilferage: willful misconduct of master or crew
breakage

5. Perils
Exclusions (types of loss excluded):

6. INSURANCE & INCOTERMS
Who Insures
Exporter Insures Importer Insures

7. TYPES OF MARINE INSURANCE
TWO TYPES OF POLICIES:
Simple
Open Policy:
shipper’s advantages
to the underwriter

8. ADJUSTMENT OF CLAIMS The Adjustment in cases of total loss:
Particular Average:
Example Total invoice $1,000
Insured For ,000
Invoice Value of Loss
Insured in proportion (110%) 55

9. ADJUSTMENT OF CLAIMS
General Average

10. General Average
Illustration:

11. General Average EXAMPLE Mkt Value of jettisoned cargo: $20,000
Cost of hull $50,000
and engine repairs:
Salvage vessel svcs: $70,000
Disbursements at port $35,000
Total Vessel Sacrifice 155,000

12. General Average Total to be allowed or to be
made good in general average: $175,000
Value of Cargo (plus sacrifice) 100,000
Value of Vessel (plus sacrifice) 400,000
Total Contributory values $500,000
Rate of General Average 35%

13. General Average
The cargo and the vessel will each contribute

14. General Average Pays Contribution of Receives Balance Owed
Cargo $35,000 $20, $15,000
Vessel $140,000 $155, $15,000
If cargo insured: $0 If uninsured:

15. TERMS AND CONDITIONS OF COVERAGE
Free From Particular Average (FPA)

16. TERMS AND CONDITIONS OF COVERAGE
With Average

17. BASIC CONDITIONS
All Risk

18. Containerization & Marine Insurance
Problems with Containers