Marine Ins Project Final

7/31/2019 Marine Ins Project Final

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MARINE INSURANCE


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GROUP MEMBERS

Name Roll No.Rashmi Amesar 01

Yash Kothari 26

Mihir Shah 49


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ACKNOWLEDGEMENTI AM EXTREMELY THANKFUL AND WOULD LIKE TO

EXPRESS DEEP GRATITUDE TO PROJECT GUIDE PROF.

OBEROI WHO HAS HELPED US TO STUDY THE VAST

UTILIZATION OF MARINE INSURANCE AND ALSO HELPED

ME TO OVERCOME ALL THE DIFFICULTIES THAT CAME IN

THE COURSE OF COMPLETION OF THE PROJECT.

I WOULD ALSO LIKE TO THANKS MY FRIEND, FAMILY AND

ALL SEEN AND UNSEEN HANDS THAT HAVE HELPED ME TO

COMPLETE THE PROJECT.


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INDEX

1. INTRODUCTION2. MEANING AND DEFINATION3. HISTORY4. BRANCHES OF MARINE INSURANCE5. PRINCIPLES OF MARINE INSURNCE6. TYPES OF MARINE INSURANCE7. MARINE INSURANCE POLICIES

8. ADVANTAGES OF MARINE INSURANCE9. PREMIUM CALCULATION10. PROCEDURE FOR CLAIM SETTLEMENT11. ROLE OF UNDERWRITERS12. RISKS INVOLVED IN MARINE INSURANCE13. CASE STUDY

14. COMPANIES OFFERING MARINE INSURANCE15. BIBLIOGRAPHY


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INTRODUCTION INSURANCE CONNECTED WITH THE RISKS OF

TRANSPORTATION OF GOODS, IS ONE OF THE

OLDEST AND MOST IMPORTANT FORM OF

INSURANCE.

THE VALUE OF GOODS SHIPPED BY THE BUSINESS

FIRMS EACH YEAR COST BILLIONS OF RUPEES.

THESE GOODS ARE EXPOSED TO DAMAGE OR LOSS

FROM NUMEROUS PERILS ASSOCIATED WITH

TRANSPORTATION.

THESE GOODS CAN BE PROTECTED BY MARINE

INSURANCE CONTRACTS.

IT IS AN IMPORTANT ELEMENT OF THE GENERALINSURANCE INDUSTRY.

IT ESSENTIALLY PROVIDES COVER FOR THE LOSSES

SUFFERED DUE TO MARINE PERILS.

IN INDIA MARINE INSURANCE IS REGULATED BY THE

INDIAN MARITIME INSURANCE ACT, 1963 WHICH ISBASED ON THE ORIGINAL MARINE INSURANCE ACT,

1906 OF U.K.


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MEANING & DEFINATION

MEANING:

MARINE INSURANCE COVERS RISK OF LOSS OF SHIP,

CARGO AND FREIGHT IN SEA ROUTES.IT IS THE WRITTEN

CONTRACT BETWEEN THE INSURED AND INSURER.THE

INSURER AGREES TO INDEMNIFY THE INSURED AGAINST

RISKS OF MARINE LOSSES CAUSED BY PERILS OF SEA.

MARINE INSURANCE IS THE OLDEST TYPE OF

INSURANCE.IT PROVIDES PROTECTION TO EXPORTS,

IMPORTS AND THE SHIPPING COMPANIES.IT IS

CONCERNED WITH THE INTERNATIONAL TRADE.

DEFINATION:

MARINE INSURANCE IS A CONTRACT IN WHICH THE

INSURER AGREES TO INDEMNIFY THE INSURED, IN

CONSIDERATION OF PREMIUM AGAINST LOSS OR DAMAGE

CAUSED BY CERTAIN PERILS OF THE SEA TO THE

SUBJECT MATTER INSURED.


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HISTORY

MARINE INSURANCE AS WE KNOW IT TODAY, CAN BE

DESCRIBED AS MOTHER OF ALL INSURANCES.

IT IS BELIEVED TO HAVE ORIGINATED IN ENGLAND

OWING TO THE FREQUENT MOVEMENT OF SHIPS

OVERSEAS FOR COMMERCE AND TRADE.

IN INDIA, MARINE INSURANCE HAS BEEN IN VOGUE

FOR SEVERAL CENTURIES.

PRIOR TO THE DEVELOPMENT OF MARINE

INSURANCE, THE PEOPLE ACROSS THE WORLD HAD A

SYSTEM OF POOLING THEIR CONTRIBUTION SO THATIF ANY ONE OF THEM SUFFERS LOSS DURING

VOYAGE, HE WOULD BE COMPENSATED FROM THE

POOL.


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HISTORY CONTINUED .

TODAY MARINE INSURANCE HAS ASSUMED A VAST

DIMENSION DUE TO EVER EXPANDING TRADE

ACROSS THE GLOBE.

THE VALUE OF EACH SHIP AND THE CARGO CARRIED

THEREIN MAY BE COSTING MILLIONS OF RUPEES TOTHE OWNERS.

SO IT INVOLVES LARGE SHIPPING COMPANIES THAT

REQUIRE PROTECTION NOT ONLY FOR THEIR COSTLY

SHIPS AGAINST THE PERILS OF THE SEA, BUT ALSO

TO THE CARGO BEING CARRIED IN EACH OF THE

SHIPS.


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BRANCHES OF MARINE

INSURANCE

MARINE INSURANCE HAS TWO BRANCHES:

1. OCEAN MARINE INSURANCE:

OCEAN MARINE INSURANCE COVERS THE PERILS OF THE

SEA.


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2. INLAND MARINE INSURANCE:

INLAND MARINE INSURANCE IS RELATED TO THE INLANDRISKS ON THE LAND.


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PRINCIPLES OF MARINE

INSURANCE

UTMOST GOOD FAITH - THE MARINE CONTRACT ISBASED ON UTMOST GOOD FAITH ON THE PART OFTHE PARTIES. THE BURDEN OF THIS PRINCIPLE ISMORE ON THE INSURED THAN ON THE

UNDERWRITER. THE INSURED SHOULD GIVE FULLINFORMATION ABOUT THE SUBJECT TO THE INSURED.HE SHOULD NOT WITHHOLD ANY INFORMATION. IF APARTY DOES ACT IN GOOD FAITH, THE OTHER PARTYIS AT LIBERTY TO CANCEL THE CONTRACT.

INSURABLE INTEREST - INSURABLE INTEREST MEANSTHAT THE INSURED SHOULD HAVE INTEREST IN THE

SUBJECT WHEN IT IS TO BE INSURED. HE SHOULD BEBENEFITED BY THE SAFE ARRIVAL OF COMMODITIESAND HE SHOULD BE PREJUDICED BY LOSS ORDAMAGE OF GOODS. THE INSURED MAY NOT HAVE ANINSURABLE INTEREST AT THE TIME OF ACQUIRING AMARINE INSURANCE POLICY, BUT HE SHOULD HAVE AREASONABLE, EXPECTATION OF ACQUIRING SUCHINTEREST. THE INSURED MUST HAVE INSURABLEINTEREST AT THE TIME OF LOSS OR DAMAGE,OTHERWISE HE WILL NOT BE ABLE TO CLAIMCOMPENSATION.


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INDEMNITY - THIS PRINCIPLE MEANS THAT THEINSURED WILL BE COMPENSATED ONLY TO THEEXTENT OF LOSS SUFFERED. HE WILL NOT BE

ALLOWED TO EARN PROFIT FROM MARINE

INSURANCE. THE UNDERWRITER PROVIDES TOCOMPENSATE THE INSURED IN CASH AND NOT TOREPLACE THE CARGO OR THE SHIP. THE MONEYVALUE OF THE SUBJECT-MATTER IS DECIDED AT THETIME OF TAKING UP THE POLICY. SOMETIMES THEVALUE IS CALCULATED AT THE TIME OF LOSS ALSO.

CAUSE PROXIMA - THIS IS A LATIN WORD WHICHMEANS THE NEAREST OR PROXIMATE CAUSE. ITHELPS IS DECIDING THE ACTUAL CAUSE OF LOSSWHEN A NUMBER OF CAUSES HAVE CONTRIBUTED TOTHE LOSS. THE IMMEDIATE CAUSE OF LOSS SHOULDBE DETERMINED TO FIX THE RESPONSIBILITY OF THEINSURER. THE REMOTE CAUSE FOR A LOSS IS NOTIMPORTANT IN DETERMINING THE LIABILITY. IF THE

PROXIMATE CAUSE IS INSURED AGAINST, THEINSURER WILL INDEMNIFY THE LOSS.

WARRANTY -A WARRANTY IS A PROMISE BY THEASSURED TO THE UNDERWRITER THAT SOMETHINGSHALL OR SHALL NOT BE DONE OR CERTAIN OF

AFFAIRS DOES OR DOES NOT ARISE.


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TYPES OF MARINE

INSURANCE

CARGO INSURANCE: CARGO INSURANCE CATERSSPECIFICALLY TO THE CARGO OF THE SHIP AND ALSOPERTAINS TO THE BELONGINGS OF A SHIPS

VOYAGERS.


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HULL INSURANCE: HULL INSURANCE MAINLY CATERSTO THE TORSO AND HULL OF THE VESSEL ALONGWITH ALL THE ARTICLES AND PIECES OF FURNITUREIN THE SHIP. THIS TYPE OF MARINE INSURANCE IS

MAINLY TAKEN OUT BY THE OWNER OF THE SHIP INORDER TO AVOID ANY LOSS TO THE SHIP IN CASE OF

ANY MISHAPPENINGS OCCURRING.

LIABILITY INSURANCE: LIABILITY INSURANCE IS THAT

TYPE OF MARINE INSURANCE WHERECOMPENSATION IS SOUGHT TO BE PROVIDED TO ANYLIABILITY OCCURRING ON ACCOUNT OF A SHIPCRASHING OR COLLIDING AND ON ACCOUNT OF ANYOTHER INDUCED ATTACKS.


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FREIGHT INSURANCE: FREIGHT INSURANCE OFFERSAND PROVIDES PROTECTION TO MERCHANTVESSELS CORPORATIONS WHICH STAND A CHANCE

OF LOSING MONEY IN THE FORM OF FREIGHT IN CASE

THE CARGO IS LOST DUE TO THE SHIP MEETING WITHAN ACCIDENT. THIS TYPE OF MARINE INSURANCESOLVES THE PROBLEM OF COMPANIES LOSINGMONEY BECAUSE OF A FEW UNPRECEDENTEDEVENTS AND ACCIDENTS OCCURRING.


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MARINE INSURANCE POLICIES

IN ADDITION TO THESE TYPES OF MARINE INSURANCE,THERE ARE ALSO VARIOUS TYPES OF MARINE INSURANCEPOLICIES WHICH ARE OFFERED TO THE CLIENTS BYINSURANCE COMPANIES SO AS TO PROVIDE THE CLIENTSWITH FLEXIBILITY WHILE CHOOSING A MARINE INSURANCEPOLICY. THE AVAILABILITY OF A WIDE ARRAY OF MARINEINSURANCE POLICIES GIVES A CLIENT A WIDE ARENA TOCHOOSE FROM, THUS ENABLING HIM TO GET THE BESTDEAL FOR HIS SHIP AND CARGO. THE DIFFERENT TYPESOF MARINE INSURANCE POLICIES ARE DETAILED BELOW:

VOYAGE POLICY: A VOYAGE POLICY IS THAT KIND OFMARINE INSURANCE POLICY WHICH IS VALID FOR APARTICULAR VOYAGE.

TIME POLICY: A MARINE INSURANCE POLICY WHICH ISVALID FOR A SPECIFIED TIME PERIOD GENERALLYVALID FOR A YEAR IS CLASSIFIED AS A TIME POLICY.


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MIXED POLICY: A MARINE INSURANCE POLICY WHICHOFFERS A CLIENT THE BENEFIT OF BOTH TIME ANDVOYAGE POLICY IS RECOGNIZED AS A MIXED POLICY.

OPEN (OR) UN-VALUED POLICY: IN THIS TYPE OFMARINE INSURANCE POLICY, THE VALUE OF THECARGO AND CONSIGNMENT IS NOT PUT DOWN IN THEPOLICY BEFOREHAND. THEREFORE REIMBURSEMENTIS DONE ONLY AFTER THE LOSS TO THE CARGO ANDCONSIGNMENT IS INSPECTED AND VALUED.


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VALUED POLICY: A VALUED MARINE INSURANCEPOLICY IS THE OPPOSITE OF AN OPEN MARINEINSURANCE POLICY. IN THIS TYPE OF POLICY, THEVALUE OF THE CARGO AND CONSIGNMENT IS

ASCERTAINED AND IS MENTIONED IN THE POLICYDOCUMENT BEFOREHAND THUS MAKING CLEAR

ABOUT THE VALUE OF THE REIMBURSEMENTS INCASE OF ANY LOSS TO THE CARGO ANDCONSIGNMENT.

PORT RISK POLICY: THIS KIND OF MARINEINSURANCE POLICY IS TAKEN OUT IN ORDER TO

ENSURE THE SAFETY OF THE SHIP WHILE IT ISSTATIONED IN A PORT.

WAGER POLICY: A WAGER POLICY IS ONE WHERETHERE ARE NO FIXED TERMS OF REIMBURSEMENTSMENTIONED. IF THE INSURANCE COMPANY FINDS THEDAMAGES WORTH THE CLAIM THEN THEREIMBURSEMENTS ARE PROVIDED, ELSE THERE ISNO COMPENSATION OFFERED. ALSO, IT HAS TO BE

NOTED THAT A WAGER POLICY IS NOT A WRITTENINSURANCE POLICY AND AS SUCH IS NOT VALID IN ACOURT OF LAW.

FLOATING POLICY: A MARINE INSURANCE POLICYWHERE ONLY THE AMOUNT OF CLAIM IS SPECIFIED

AND ALL OTHER DETAILS ARE OMITTED TILL THE TIMETHE SHIP EMBARKS ON ITS JOURNEY, IS KNOWN AS

FLOATING POLICY. FOR CLIENTS WHO UNDERTAKEFREQUENT TRIPS OF CARGO TRANSPORTATIONTHROUGH WATERS, THIS IS THE MOST IDEAL ANDFEASIBLE MARINE INSURANCE POLICY.


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ADVANTAGES OF MARINE INSURANCE

IT IS HIGHLY DESIRABLE, WHENEVER POSSIBLE, TOARRANGE THE INSURANCE FROM THE EXPORTER'S POINTOF VIEW, BECAUSE:

1. THE EXPORT FIRM, WITH ITS SPECIALIZED KNOWLEDGEOF THE PRODUCT, IS ABLE TO ENSURE THAT THECOVERAGE MEETS ITS EXACT REQUIREMENTS, AND THATTHE COVERAGE IS WITH AN INSURANCE COMPANY OF ITS

CHOICE.2. ANY CLAIM IS PAYABLE IN THE EXPORTER'S OWNCURRENCY, THEREBY ELIMINATING THE RISK OF

AN EXCHANGE LOSS.

3. IF THE GOODS ARE BEING SOLD ON CREDIT, THEEXPORTER IS FINANCIALLY AT RISK WHILE THE GOODS

ARE IN TRANSIT TO THEIR FOREIGN DESTINATION.

IT IS REASSURING TO KNOW, IN THIS CASE, THATREIMBURSEMENT CAN BE SOUGHT FROM A LOCALINSURANCE COMPANY IF SOMETHING HAPPENS TO THEGOODS.

4. IF THE EXPORTER'S BANK IS INVOLVED IN PROVIDINGCREDIT, IT WILL USUALLY INSIST THAT THE EXPORTERTAKE OUT INSURANCE ON THE SHIPMENT.

THECERTIFICATE OF INSURANCE PROTECTION WILL THENFORM PART OF THE COMMERCIAL SET OF DOCUMENTSTHAT IS REQUIRED FOR EACH EXPORT SHIPMENT.
http://www.malaysiaexports.com/inex15.3.cargo.manifest.htm#Insurance%20Certificatehttp://www.malaysiaexports.com/inex15.3.cargo.manifest.htm#Insurance%20Certificatehttp://www.malaysiaexports.com/inex15.3.cargo.manifest.htm#Insurance%20Certificate


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5. CLAIMS ARE USUALLY SETTLED FASTER IF THEEXPORTER HAS ARRANGED THE INSURANCE WITH ITSOWN MARINE UNDERWRITER.

6. IF THE EXPORTER RELIES ON THE FOREIGN IMPORTERTO ARRANGE FOR THE INSURANCE, AS HE MAY HAVE TOWHEN SELLING F.A.S. OR F.O.B., HE FACES VARIOUSRISKS, SUCH AS:

(A)THE FOREIGN IMPORTER MAY HAVE NEGLECTED TOINSURE THE GOODS.

THEN, IF THE IMPORTER REFUSES TO ACCEPT THEM ON

THE GROUNDS THAT THEY ARE DAMAGED, THE EXPORTERWILL HAVE HIS GOODS SITTING IN A FOREIGN PORT WITHNO INSURANCE PROTECTION.

(B)THE INSURANCEARRANGED BY THE FOREIGNIMPORTER MAY ONLY BE FOR THEIR BENEFITS.

EVEN IF THE GOODS THAT ARE DAMAGED OR DESTROYEDARE SOLD BY THE EXPORTER ON CREDIT. THE IMPORTER

WILL BE THE ONE TO RECEIVE COMPENSATION.

(C)HOWEVER JUSTIFIABLE THE INSURANCE CLAIM, IT ISMUCH MORE DIFFICULT FOR THE EXPORTER, BECAUSE OFTHE DISTANCE AND LANGUAGE PROBLEMS, TO SECURECOMPENSATION FROM ABROAD THAN FROM THEINSURANCE COMPANY AT HOME.

7. ONE METHOD IS FOR THE EXPORTER TO DEALDIRECTLY WITH A MARINE INSURANCE COMPANY. IN THISCASE, THE EXPORT FIRM SPECIFIES ITS NEEDS AND THECOMPANY PREPARES SUITABLE COVERAGE.


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HOW IS PREMIUM CALCULATED

THE MARINE INSURANCE ACT 1906 (MIA) MAKES IT CLEAR

IN SECTION 52 THAT IT IS THE CONCURRENT DUTY OF THEASSURED OR HIS AGENT TO PAY THE PREMIUM AND FORTHE INSURER TO ISSUE THE POLICY. THE POLICY FORMUSED BY MOST INSURERS STATES THAT INSURERS

AGREE TO FULFILL THEIR OBLIGATIONS INCONSIDERATION OF THE PAYMENT OF THE PREMIUM. IN

REALITY THE PREMIUM IS SELDOM PAID AT THE TIME OFCOMMENCEMENT OF COVER, WHICH MEANS THAT COVERIS GRANTED AGAINST THE PROMISE OF PAYMENT.

INDEED THE FIRST SCHEDULE TO THE ACT GIVES AMODEL POLICY FORM THAT USES THE PHRASE

CONFESSING OURSELVES PAID AS THOUGH

ACKNOWLEDGING THE ACTUAL UNPAID STATE AT THEINCEPTION OF COVER. THE TERM UNLESS OTHERWISE

AGREED IN SECTION 52 ALLOWS INSURERS TO DEFER

THE PAYMENT OF PREMIUM.

WHEN A BROKER IS INVOLVED IN PLACING THEINSURANCE IT IS HE AND NOT THE ASSURED WHO ISRESPONSIBLE TO THE INSURER FOR THE PAYMENT OFPREMIUM. HOWEVER THE INSURERS ARE RESPONSIBLEDIRECTLY TO THE ASSURED FOR THE PAYMENT OFCLAIMS AND FOR ANY RETURN OF PREMIUMS, (MIASECTION 53). TO PROTECT THE BROKER FROM NON-PAYMENT THE ACT ALLOWS A LIEN UPON THE POLICY

AGAINST OUTSTANDING DEBT, (MIA SECTION 53.2).

IN PRACTICE PREMIUM IS CALCULATED BY APPLYING ARATE PERCENT TO THE SUM INSURED. THE INSURER,TAKING INTO CONSIDERATION ALL THE RISK ASPECTS OFTHE PARTICULAR SENDING ARRIVES AT THE RATE %. THE


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SUSCEPTIBILITY OF THE GOODS FOR THEFT OR DAMAGEIS A MAJOR CONSIDERATION AS INDEED IS THE QUALITYOF PACKING, THE METHOD OF CARRIAGE THEDESTINATION AND OF COURSE THE CLAIMS HISTORY.

THE INSURERS SKILL (SOME WOULD SAY HIS SECONDSKILL BEHIND HIS SPEED AND ACCURACY OF CLAIMSSETTLEMENT) IS TO APPLY A FAIR AND REASONABLE RATEFOR THE RISK IN HAND THAT, TO HIS KNOWLEDGE, WILLPROVIDE SUFFICIENT TO MEET THE COST OF CLAIMS, THEEXPENSE OF INSURING AND LEAVE SOMETHING FORPROFIT.

THE INSURER OF AN OPEN POLICY HAS AN OPTION.DEPENDING UPON THE ASSUREDS REQUIREMENTS, HE

CAN CHARGE PREMIUM AT REGULAR INTERVALS,USUALLY MONTHLY. THIS IS EITHER IN ACCORDANCE WITHDECLARATIONS/CERTIFICATES RECEIVED DURING THELAST 30 DAYS, OR BY TAKING A DEPOSIT PREMIUMUSUALLY BASED UPON THE ESTIMATED ANNUALSENDINGS OF THE ASSURED TO BE ADJUSTED AT THE

YEARS END AGAINST A DECLARATION OF THE ACTUALVALUE OF GOODS AT RISK.


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THE ADVANTAGE OF CHARGING PREMIUM MONTHLY ISTHAT THE INSURER CAN SEE AT REGULAR INTERVALSPRECISELY THE PATTERN OF TRADE AND HAVE A MOREUP TO DATE APPRECIATION OF THE RISK HE IS INSURING.

THE DISADVANTAGE IS THAT BY CHARGING MONTHLY HEIS REQUIRED TO OPEN HIS BOOKS 12 TIMES A YEAR INORDER TO DEBIT PREMIUM WITH THE RESULTANTEXPENSE OF ADMINISTRATION.

THE ADVANTAGE OF THE ANNUAL DEPOSIT ANDADJUSTMENT METHOD IS THAT ADMINISTRATION COSTSARE MINIMIZED BUT AT THE COST OF LOSING THE

REGULAR INDIVIDUAL DETAIL OF SENDING. THEREFORESOME RISKS ARE BETTER SUITED TO ONE WAY THAN THEOTHER.


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CLAIM SETTLEMENTMARINE INSURANCE CLAIM SETTLEMENT PROCEDURE

INTIMATION OF LOSS/DAMAGE TO NEAREST OFFICE

OF INSURER WITH POLICY PARTICULARS.

APPOINTMENT OF SURVEYOR OR CLAIM

REPRESENTATIVE IN AGREEMENT WITH THE INSURER

TO DETERMINE THE NATURE, CAUSE AND EXTENT OF

LOSS/DAMAGE.

IN CASE OF LOSS/DAMAGE OCCURS IN TRANSIT, A

MONETARY CLAIM SHOULD BE LODGED WITH THE

CARRIER WITHIN THE TIME LIMIT TO PROTECT

RECOVERY RIGHTS.

IF THE LOSS/DAMAGE TO GOODS IS APPARENT THEN

THE CARRIER OR ITS REPRESENTATIVE SHOULD BEASKED TO SURVEY THE LOSS OR JOINT SURVEY WITH

INSURERS SURVEYOR.

IF THE LOSS IS NOT APPARENT THEN CLAIM IN

WRITING SHOULD BE LODGED ON SEA CARRIER

WITHIN 3 DAYS OF DELIVERY FROM THE VESSEL

IF LOSS/DAMAGE TAKES PLACE IN THE CUSTODY OFPORT OR WAREHOUSE OR INLAND CARRIER, CLAIM

AGAINST LOSS/DAMAGED TO BE LODGED AGAINST

THE CONCERNED PARTY


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ROLE OF UNDERWRITERS

THE WORD UNDERWRITING REFERS TO PROTECTINGBYWAY OF INSURANCE. MARINE UNDERWRITING REFERS TOPROVIDING MARINE INSURANCE TO THE NECESSARYCLIENTS. IN TODAYS HIGHLY COMPLEX MARINE

BUSINESS, IT IS VERY IMPORTANT TO HAVE MARINEUNDERWRITING SERVICE.

THE PERSON WHO PROVIDES MARINE UNDERWRITING ISKNOWN AS A MARINE UNDERWRITER. THESE AREPROFESSIONALS WHOSE MAIN EXPERTISE IS TO ENSURETHAT THEIR CLIENT IS PROTECTED BY UNFORESEENLOSSES AND CASUALTIES.MARINE UNDERWRITING IS A VERY TRICKY CONCEPT. THIS

IS BECAUSE THERE ARE MANY DIFFERENT DIMENSIONSTO IT. THE LOSS TO THE BODY OR HULL OF THE SHIPANDTHE CARGO IT CONTAINED, THE REASONS OR THECAUSES OF THE LOSS, THE PLACE WHERE THE LOSSOCCURRED AND MOST IMPORTANTLY THE AMOUNT THATNEEDS TO BE SETTLED ARE THE MAIN AREAS THAT AMARINE UNDERWRITER NEEDS TO FOCUS ON. IT IS AWELL-KNOWN FACT THAT INSURANCE CLAIMS ARE VERYUNCERTAIN AND THERE NEEDS TO BE A COMPLETE

KNOWLEDGE OF ALL THE ELEMENTS INVOLVED BEFOREPLACING A CLAIM FOR COMPENSATION PURPOSES.

A MARINE UNDERWRITER THEREFORE NEEDS TO BEAWARE OF NOT JUST RULES AND REGULATIONS OF THECOUNTRY TO WHICH THE SHIP BELONGS BUT ALSO ABOUT
http://marineinsight.com/category/marine/types-of-ships-marine/http://marineinsight.com/more-categories/maritime-commerce/different-types-of-marine-insurance-marine-insurance-policies/http://marineinsight.com/more-categories/maritime-commerce/different-types-of-marine-insurance-marine-insurance-policies/http://marineinsight.com/category/marine/types-of-ships-marine/


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OTHER COUNTRIES WHERE POTENTIAL INCIDENTS COULDOCCUR. TO EXPLAIN IT SIMPLE TERMS, THE MARITIMERULESAND REGULATIONS OF ALL COUNTRIES NEEDS TOBE NOTED DOWN BY A MARINE UNDERWRITER SO THAT

CLIENTS DO NOT FACE ANY PROBLEMS REGARDING THESETTLEMENT OF THE CLAIM.IN ORDER TO MAKE THE PROCESS OF MARINEUNDERWRITING SIMPLE AND FEASIBLE, MANYPROFESSIONAL MARINE UNDERWRITING COMPANIESHAVE BEEN SET UP IN MANY COUNTRIES. THESECOMPANIES HIRE PROFESSIONAL MARINEUNDERWRITERS TO MAKE THE CLIENTS GET MORE

RELIABILITY AND BENEFIT. SOME OF THE FAMOUSCOMPANIES INCLUDE THE CHUBB GROUP AND THEUNITED MARINE UNDERWRITERS FIRM.

ADDITIONALLY, IT HAS TO BE NOTED THAT IN SOMECOUNTRIES THERE ARE ASSOCIATIONS OF MARINEUNDERWRITERS SET UP IN ORDER TO GAIN MOREEXPOSURE AND EXPERIENCE THROUGH A GROUPEFFORT. SUCH ASSOCIATIONS ARE MAJORLY PRESENT INCOUNTRIES LIKE THE UNITED STATES. EXAMPLES OFSUCH MARINE UNDERWRITING ASSOCIATIONS WOULD BETHE ASSOCIATION OF MARINE UNDERWRITERS (THIS ISBASED IN SAN FRANCISCO) AND THE AMERICAN INSTITUTEOF MARINE UNDERWRITERS, ALSO KNOWN AS THE AIMU(THIS IS AN ASSOCIATION BASED THROUGHOUT THENATION).

THESE ORGANISATIONS ENSURE THAT THE PROFESSIONOF MARINE UNDERWRITING GETS MORE KNOWLEDGE ON

A MORE REGULAR BASIS AND THAT THE PROFESSIONALSENGAGED IN MARINE UNDERWRITING GET TO LEARNMORE. IT IS A VERY INTERACTIVE CONCEPT AND THE
http://marineinsight.com/marine-knowledge/safety-of-life-at-sea-solas-convention-for-prevention-of-marine-pollution-marpol-a-general-overview/http://marineinsight.com/marine-knowledge/safety-of-life-at-sea-solas-convention-for-prevention-of-marine-pollution-marpol-a-general-overview/http://marineinsight.com/marine-careers-2/the-best-maritime-colleges-in-the-united-states/http://marineinsight.com/marine-careers-2/the-best-maritime-colleges-in-the-united-states/http://marineinsight.com/marine-knowledge/safety-of-life-at-sea-solas-convention-for-prevention-of-marine-pollution-marpol-a-general-overview/http://marineinsight.com/marine-knowledge/safety-of-life-at-sea-solas-convention-for-prevention-of-marine-pollution-marpol-a-general-overview/


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SUCCESS OF SUCH ORGANISATIONS PROVES THE SCOPEAND SPREAD OF MARINE UNDERWRITING.MARINE UNDERWRITING IS NOT A NEW PROFESSION. IT IS

A PROFESSION THAT HAS EXISTED FROM THE VERY PAST

THOUGH THE PROFESSION IS A RELATIVELY UNKNOWNONE. FOR PEOPLE WHO ASPIRE TO BE PROFESSIONALS

AND EXPERTS IN VARIED AND UNIQUE AREAS, A CAREEROF BEING A MARINE UNDERWRITER IS SOMETHING THATCOULD OFFER THEM UNIQUENESS AND COMPLETESATISFACTION.
http://marineinsight.com/more-categories/maritime-commerce/shipping-jobs-a-field-of-great-opportunities/http://marineinsight.com/more-categories/maritime-commerce/shipping-jobs-a-field-of-great-opportunities/


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RISKS INVOLVED IN

MARINE INSURANCEEXCLUSIONS:-1. LOSS OR DAMAGE TO THE WILLFUL MISCONDUCT OF

THE ASSURED.

2. ORDINARY LEAKAGE, BREAKAGE, WEAR AND TEAR AND

LOSS IN WEIGHT OR VOLUME.

3. INSUFFICIENCY IN PACKING.

4. LOSS OR DAMAGE CAUSED BY INHERENT NATURE OF

THE SUBJECT MATTER.

5. LOSS OR DAMAGE PROXIMATELY CAUSED BY DELAY IN

TRANSIT

6. LOSS OR DAMAGE ARISING FROM INSOLVENCY ORFINANCIAL DEFAULT OF OWNERS, MANAGERS,

OPERATORS ETC.

7. NEUCLEAR PERILS.

8. MALICIOUS DAMAGE.

ALL THE COVERS ARE ALSO SUBJECTED TO THE WAR &

STRIKE/RIOT/CIVIL COMMOTION RISK.


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CASE STUDYTHE PROBLEM

A EUROPEAN CLIENT WAS USING OUR LOGISTICSSERVICES BUT WAS INSURED BY A GENERIC COMPANYLIABILITY POLICY THAT COVERED THEIR WHOLECOMPANY.

THEY HAD A RELATIVELY MINOR TRAFFIC ACCIDENT NEAR

THEIR DESTINATION PORT IN CHINA. THEY NEEDEDASSISTANCE TO CHECK THE CARGO, REVIEWDOCUMENTATION WITH LOCAL AUTHORITIES AND ENSURETHE SAFE ONWARD JOURNEY OF THE CARGO.

WHILST ATTEMPTING TO PROCESS THE CLAIM THEY CAMEACROSS THE FOLLOWING PROBLEMS:

THERE WERE DELAYS AND INCREASED COSTS WHILSTCLAIM INFORMATION WAS COLLATED AND ACTIONEDOVER DIFFERENT TIME ZONES.

AS THE POLICY WAS HELD IN EUROPE ALLAUTHORISATIONS HAD TO COME DIRECTLY FROM OURCLIENT.

THE CLAIM WAS MINOR BUT THE COMPANY HAD A

MINIMUM EXCESS FEE PAYABLE OF 5,000 EUROS.

DUE TO POOR COMMUNICATION, FURTHER DELAYS ANDCOSTS WERE ENCOUNTERED IN ARRANGING LOCALSUPPORT IN CHINA.


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ALL CLAIMS ARE HANDLED AND PROCESSED BY OURINSURANCE TEAM, ENSURING THE RESOURCES OF OURCLIENTS ARE NOT OVER COMPROMISED.

A TECHNICAL REVIEW AND REPORT TO SEE IF THESITUATION COULD HAVE BEEN AVOIDED OR THE SUPPLYCHAIN IMPROVED FOR FUTURE SHIPMENTS.

WHILST WE HOPE THAT OUR CUSTOMERS DO NOTENCOUNTER SUCH PROBLEMS, THIS IS A PRACTICALSOLUTION TO THE ELEMENTS THAT REMAIN BEYOND OURDIRECT CONTROL.

PROVIDING A TAILORED PACKAGE SPECIFICALLY FOR ENDTO END FLEXI TANK SHIPMENTS.


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COMPANIES OFFERING MARINE INSURANCE

1. THE ORIENTAL INSURANCE COMPANY LIMITED

OFFICIAL WEBSITEwww.orientalinsurance.org.in

2. UNITED INDIA INSURANCE COMPANY LIMITED

OFFICIAL WEBSITEwww.uiic.co.in
http://www.orientalinsurance.org.in/http://www.orientalinsurance.org.in/http://www.orientalinsurance.org.in/http://www.uiic.co.in/http://www.uiic.co.in/http://www.uiic.co.in/http://www.uiic.co.in/http://www.orientalinsurance.org.in/


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BIBLIOGRAPHY

www.slideshare.com

www.marineinsight.com

www.irdaindia.org

www.google.com

www.wikipedia.org

www.insurance2day.co.uk

www.transoceanbulk.com
http://www.slideshare.com/http://www.marineinsight.com/http://www.irdaindia.org/http://www.google.com/http://www.wikipedia.org/http://www.insurance2day.co.uk/http://www.transoceanbulk.com/http://www.transoceanbulk.com/http://www.insurance2day.co.uk/http://www.wikipedia.org/http://www.google.com/http://www.irdaindia.org/http://www.marineinsight.com/http://www.slideshare.com/

Marine Ins Project Final

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