Student Info Login l Web Mail l Cinec Hrm l Contact Us l LMS
   
  
     
News & Events
Opening of the 'Dalian' Building and MOU Signing Ceremony
CINEC Management School
Show Archive .......
 
DMU Draws up an Agreement with Colombo International Nautical and Engineering College
 
  News & Events  
 

 

Workshop on Marine Insurance
 
 
  1. Historical Origin

    1. (a) Origin “veiled in antiquity and lost in obscurity”
    2. Bottomry – originally a kind of marine insurance, first practiced by ancient Babylonians and Indians.
    3. Roman era - 215 B.C. Documented evidence of fraudulent marine insurance claims
    4. By 50 B.C. – Major principles of marine insurance law established i.e.

      1. Insurable interest
      2. Spreading of risk
      3. Premium as consideration
    5. By 13th century, marine insurance practiced by the Lombards and Hanseatic merchants [C & G]
    6. Early 17th Century – Rise of Lloyds


  2. Marine Insurance Institutions [C&G p. 501]

    1. Association of Lloyd’s Underwriters
    2. Institute of London Underwriters
    3. International Group of Protection & Indemnity Clubs
    4. International Union of Marine Insurers (IUMI)


  3. Marine Insurance Business & Practice [C&G pp. 500-501]

    1. Lloyds’ S.G. Form
    2. Lloyds’ MAR Form
    3. Role of the Broker [C&G pp. 504-505]
    4. Hull & Machinery Coverage
    5. P & I coverage

      1. Third Party Risks
      2. Omnibus Rule
      3. No limitation on coverage


  4. Principles of Marine Insurance

    1. Doctrine of uberrimae fidei
      Requirement of full disclosure of material facts by assured.
      Carter v. Boehm (1766), 3 Burr. 1905
      James Yachts Ltd v. Thames & Mersey Mar. Ins. Co. Ltd. [1976]
      LL.L.R. 2591


    2. Insurable Interest

      1. reasonable expectation of acquiring an interest
      2. distinguishable from wagering or gambling
      3. “that which amounts to a moral certainty”
      4. “benefit from its existence, prejudice from its destruction”Lucena v. Crauford (1806), 127 E.R. 630 (H.L.)


    3. Indemnity

      1. Compensation limited to extent of pecuniary loss
      2. Compensation limited to contractual limit of indemnity
      3. If devalued policy – “to full extent of insurable value” –
      4. Valued and devalued Policies – The Borre (1923), 15 LL.L.R. 175


    4. Subrogation

      1. “to step into the shoes of the assured”
        Castellina v. Preston (1883), 11 Q.B. 388
      2. Windfall
        Burand v. Rodocanachi (1882) 7 A.C. 333
        Yorkshire Insurance v. Nisbet Shipping (1961), 2 AU E.R. 487


    5. Constructive Total Loss

      1. Unique to marine insurance
        Moore v. Evans (1918) A.C. 185
      2. Distinction with actual total loss: irretrievable deprivation
      3. George Cohen Sons & Co. v. Standard Mar. Ins. Co. Ltd. (1925)
        21 LL.L. Rep 30.


      4. 2 types of CTL

        1. Unlikelihood of Recovery
        2. Cost in excess of value of recovered property


    6. Abandonment

      1. Notice of Abandonment
      2. Where CTL claimed in respect of a partial loss
      3. Distinguished from "subrogation"
        A.G. v. Glen Line Ltd et al. (1939) H.L.
        See Rubina Khurram, “Total Loss and Abandonment in the Law of Marine Insurance”, (1994) JMLC, Vol. 25, No. 1, p.95.


  5. Marine Insurance Legislation & Contracts

    1. The Marine Insurance Act 1906
    2. Institute Clauses
    3. International Hull Clauses 2003

 

 

 

 

 

  
Copyright Colombo International Nautical & Engineering College (CINEC). Site by 3CS