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Why do I need Marine Insurance?

Marine Cargo Insurance provides coverage for loss of or damage to goods in transit by any modelike rail, road, sea, air, post, courier etc., either inland purchases / sales or global imports /

exports. Marine insurance cover can be provided for export and import shipments by ocean-

going vessels of all types, coastal shipments by steamers, sailing vessels, mechanised boats,shipments by inland vessels or country crafts and consignments by rail, road, air or post etc.

What does Policy Cover ?

y ICC (C) : Fire, lightning, stranding, grounding, sinking or capsizing of vessel or craft,

overturning or derailment of land conveyance, collision or contact of vessel, craft or conveyance with any external object other than water, discharge of cargo at a port of

distress, general average sacrifice and jettisoning.y ICC (B) : Earthquake, volcanic eruption or lightning, washing overboard, entry of sea,

lake or river water into vessel, craft, hold, Conveyance, container, liftvan or place of

storage, in addition to the perils of ICC (C).y ICC (A) : All risks, subject only to the specified exclusions

What does Policy not Cover ?

y Willful misconducty Ordinary leakage, ordinary loss in weight or volume or ordinary wear and tear

y Inherent vice or nature of the subject - matter y Delay howsoever caused

y Insolvency or financial default of carrier y Inadequate packing, war and kindred perils, strikes, riots, lock-out, civil commotion and

terrorism. (W

ar and SRCC during ocean voyage and SRCC/T for inland transits may becovered at extra premium)

Features and Benefits

y Cargo Policies are freely assignable.y Existence of insurable interest needs to be established only at the time of loss.

y Marine Policies are agreed value Policies.y An element of profit can also be included in the Sum Insured, which is allowed by the

insurers.y Marine Policies are transit / voyage Policies and not limited to any specific period.

y The interpretation and applicability of various statutes, the legislation in variouscountries, the port conditions, customs procedures and the legal systems in various parts

of the world, govern the operation and interpretation of a Marine Insurance Policy.

Types of Policies

y Specific Policy - A separate Policy for each consignment / transit.

y O pen Policy - This is intended to cover all inland consignments for one year.



y O pen Cover is meant for consignments in exports and imports.y Special Storage Risks Policy is granted in conjunction with an O pen Policy, Specific

Policy or open cover.y Annual Policy is issued for 12 months, covers goods belonging to the Insured, which are

not under contract of sale and which are in transit by rail/road from specified

depots/processing units to other specified depots / processing unitsy Duty Insurance Policy covers customs duty alone if so required by the Insured.y Increased Value Insurance Policy covers increased value of the cargo if the market value

of the goods at destination port on the date of landing is higher than the c.i.f. and dutyvalue of the cargo

y Package Policy is also available to cover transits and storage risks incidental to transitsfor tea, coffee, cardamom and rubber.

Protection and indemnity

A marine policy typically covered only three-quarter of the insured's liabilities towards third

parties. The typical liabilities arise in respect of collision with another ship, known as 'runningdown' (collision with a fixed object is an 'allision'), and wreck removal (a wreck may serve to

block a harbour, for example).

In the 19th century, shipowners banded together in mutual underwriting clubs known as

Protection and Indemnity Clubs (P&I), to insure the remaining one-quarter liability amongstthemselves. These Clubs are still in existence today and have become the model for other

specialised and uncommercial marine and non-marine mutuals, for example in relation to oil pollution and nuclear risks.

Clubs work on the basis of agreeing to accept a shipowner as a member and levying an initial

'call' (premium).W

ith the fund accumulated, reinsurance will be purchased; however, if the lossexperience is unfavourable one or more 'supplementary calls' may be made. Clubs also typically

try to build up reserves, but this puts them at odds with their mutual status.

Because liability regimes vary throughout the world, insurers are usually careful to limit or exclude American Jones Act liability.

Actual Total Loss and Constructive Total Loss

These two terms are used to differentiate the degree of proof where a vessel or cargo has beenlost.

An Actual Total Loss refers to the situation where the position is clear and a Constructive Total

Loss refers to the situation where a loss is inferred. In practice, a Constructive Total Loss mightalso be used to describe a loss where the cost of repair is not economic; ie a 'write-off'.

The different terms refer to the difficulties of proving a loss where there might be no evidence of such a loss. In this respect, marine insurance differs from non-marine insurance, where the

insured is required to prove his loss. Traditionally, in law, marine insurance was seen as an



insurance of 'the adventure', with insurers having a stake and an interest in the vessel and/ or thecargo rather than, simply, an interest in the financial consequences of the subject-matter's

survival.

Average

The term 'Average' has two meanings:

(1) In marine insurance, in the case of a partial loss, or emergency repairs to the vessel, average

may be declared. This covers situations, where, for example, a ship in a storm might have to jettison certain cargo to protect the ship and the remaining cargo. 'General Average' requires all

parties concerned in the venture (Hull/Cargo/Freight/Bunkers) to contribute to compensate thelosses caused to those whose cargo has been lost or damaged. 'Particular Average' is levied on a

group of cargo owners and not all of the cargo owners.

(2) In the situation where an insured has under-insured, ie. insured an item for less than it is

worth, average will apply to reduce the amount payable. There are different ways of calculatingaverage, but generally the same proportion of under-insurance will be applied to any payout due.

An average adjuster is a marine claims specialist responsible for adjusting and providing thegeneral average statement. He is usually appointed by the shipowner or insurer.

Excess, Deductible, Retention, Co-Insurance, and Franchise

An Excess is the amount payable by the insured and is usually expressed as the first amountfalling due, up to a ceiling, in the event of a loss. An excess may or may not be applied. It may

be expressed in either monetary or percentage terms. An excess is typically used to discourage

moral hazard and to remove small claims, which are disproportionately expensive to handle. Theequivalent term to 'excess' in marine insurance is 'deductible' or 'retention'.

A co-insurance, which is typically applied in non-proportional treaty reinsurance, is an excessexpressed as a proportion of a claim, e.g. 5%, and applied to the entirety of a claim.

A franchise is a deductible below which nothing is payable and beyond which the entire amountof the sum insured is payable. It is typically used in reinsurance arbitrage arrangements.

Tonners and Chinamen

These are both obsolete forms of early reinsurance. Both are technically unlawful, as not havinginsurable interest, and so were unenforceable in law. Policies were typically marked P.P.I.(Policy is Proof of Interest). Their use continued into the 1970s before they were banned by

Lloyd's, the main market, by which time, they had become nothing more than crude bets.

A 'tonner' was simply a 'policy' setting out the global gross tonnage loss for a year. If that loss

was reached or exceeded, the policy paid out. A 'chinaman' applied the same principle but inreverse: thus, if the limit was not reached, the policy paid out.



Specialist Policies

Various types of specialist policy exist, including:

Newbuilding risks: This covers the risk of damage to the hull whilst it is under

construction.

Yacht Insurance: Insurance of pleasure craft is generally known as 'yacht insurance' and

includes liability coverage. Smaller vessels, such as yachts and fishing vessels, aretypically underwritten on a 'binding authority' or 'lineslip' basis.

War risks: Usual Hull insurance does not cover the risks of a vessel sailing into a war zone.

A typical example is the risk to a tanker sailing in the Persian Gulf during the Gulf War.

War risks cover protects, at an additional premium, against the danger of loss in a warzone. The war risks areas are established by the Marine Insurance

Marine insurance falls under commercial insurance. The policy is taken to reduce business risks.It caters to small scale business organisations to large corporates. Policy does not cover loss or damage due to willful misconduct, ordinary leakage, improper packing, delay, war, strike, riot

and civil commotion.

Different types of Marine Insurance are available:

y Marine import transit insurance

y Marine export transit insurancey Marine inland transit insurance

y Marine insurance claim procedurey Marine Hull

C alculation of Marine Insurance Amount/Premium:

Amount of premium depends on factors like nature of cargo, scope of cover, packing, mode of

conveyance, distance and past claims experience. Premium can be paid on amonthly/quarterly/half-yearly/yearly basis.

Marine Insurance C laim Procedure:

y In case of loss/damage in transit, a monetary claim should be lodged with the carrier within the time limit to protect recovery rights

y Appointment of surveyor or claim representative in agreement with the insurer todetermine the nature, cause and extent of loss/damage

y The surveyor informs the insurer of the approximate value of loss incurredy The claim procedure takes from one to three weeks



Documents Required for Marine Insurance Claim:

1. Original Invoice & packing List - if forming part of Invoice2. Document of declaration of consignment

3. Damage Certificate from the carrier

The farmer must furnish area sown confirmation certificate, if required.

List of Some of Insurance C ompanies Offering Marine Insurance:

ICICI Lombard - Marine Import Transit Insurance Policy

United India Insurance Co. - Marine Cargo

The New India Assurance Co. - Marine Cargo Policy

*Terms and conditions may vary in different insurance companies

London-based Joint War Committee, which has recently moved to include the MalaccaStraits as a war risks area due to piracy [1]. If an attack is classified as a "riot" then it

would be covered by war risk insurers[1]

.

Increased Value (IV): Increased Value cover protects the shipowner against anydifference between the in sured value of the vessel and the market value of the vessel.

Overdue insurance: This is a form of insurance now largely obsolete due to advances in

communications. It was an early form of reinsurance and was bought by an insurer whena ship was late at arriving at her destination port and there was a risk that she might have

been lost (but, equally, might simply have been delayed). The overdue insurance of theTitanic was famously underwritten on the doorstep of Lloyd's.

Cargo insurance: Cargo insurance is underwritten on the Institute Cargo Clauses, withcoverage on an A, B, or C basis, A having the widest cover and C the most restricted.

Valuable cargo is known as specie.

Warranties and Conditions

A peculiarity of marine insurance and insurance law generally, is the use of the terms condition and warranty. In English law, a condition typically describes a part of the contract that isfundamental to the performance of that contract, and, if breached, breaches the contract as a

whole. By contrast, a warranty is not fundamental to the performance of the contract and breachof a warranty will not lead to a breach of the contract. The meaning of these terms is reversed in

insurance law. Thus, the Marine Insurance Act 1906 refers to implied warranties, one of the mostimportant of which is that the vessel is seaworthy.

[2]



Salvage and Prizes

The term 'salvage' refers to the practice of rendering aid to a vessel in distress. Apart from theconsideration that the sea is traditionally 'a place of safety', with sailors honour-bound to render

assistance as required, it is obviously in underwriters' interests to encourage assistance to vessels

in danger of being wrecked. A policy will usually include a 'sue and labour' clause which willcover the reasonable costs incurred by a shipowner in his avoiding a greater loss.

At sea, a ship in distress will typically agree to 'Lloyd's O pen Form' with any potential salvor.The Lloyd's O pen Form is the standard contract, although other forms exist. The Lloyd's O pen

Form is headed 'No cure - no pay'; the intention being that if the attempted salvage isunsuccessful, no award will be made. However, this principle has been weakened in recent years,

and awards are now permitted in cases where, although the ship might have sunk, pollution has been avoided or mitigated. In other circumstances the "salvor" may invoke the SCOPIC terms

(most recent and commonly used rendition is SCOPIC 2000) in contrast to the LOF (Lloyd'sO pen Form) these terms mean that the salvor will be paid even if the salvage attempt is

unsuccessful. The amount the salvor receives is limited to cover the costs of the salavage attemptonly. One of the main negative factors in invoking SCOPIC (on the salvors behalf) is if the

salvage attempt is successful the amount at which the salvor can claim under article 13 of LOF isdiscounted.

The Lloyd's O pen Form, once agreed, allows salvage attempts to begin immediately. The extentof any award is determined later; although the standard wording refers to the Chairman of

Lloyd's arbitrating any award, in practice the role of arbitrator is passed to specialist admiraltyQCs.

A ship captured in war is referred to as a prize, and the captors entitled to prize money. Again

this risk is covered by standard policies.

While the movement of cargo within the country is covered under inland policies, cargo goingout of India/ cargo coming to India from broad are covered under overseas policies.

One has the option of covering the voyage under a specific policy. However, if the voyages are

frequent and it is difficult/ cumbersome to take specific policies, option is also available to obtaincover of all despatches under an open policy.

Scope of Cover

The scope of cover under inland policies are determined by Inland Transit Clauses A, B and C.While C covers the losses arising due to fire and lightning, B covers losses arising due to

accident of the carrying vehicle besides whatever is covered in C. Inland Transit Clause A is anAll Risk policy.

The scope of cover under inland policies are determined by Institute Cargo Clauses A, B and C.

While C broadly covers the losses arising due to fire/ explosion/ sinking/ stranding/ jettison/General Average, B covers losses arising due to earthquake, entry of sea water, washing



overboard etc besides whatever is covered in C.

Institute Cargo Clause A is an All Risk policy.

All the policies are subject to certain exclusions like inherent vice, losses arising due to war and

nuclear perils etc.

Sum Insured The sum insured is based on cost, insurance, freight and other incidental expenses. This is anagreed value policy.

Premium Rate Premium rate depends on various factors associate with the risk. Important amongst them arenature of cargo, scope of cover, packaging, mode of conveyance, past claims experience etc.

Different types of Marine Insurance are available:

y Marine import transit insurance

y Marine export transit insurance

y Marine inland transit insurancey Marine insurance claim procedure

y Marine Hull

Calculation of Marine Insurance Amount/Premium:

Amount of premium depends on factors like nature of cargo, scope of cover, packing, mode of conveyance, distance and past claims experience. Premium can be paid on a

monthly/quarterly/half-yearly/yearly basis.

Marine Insurance Claim Procedure:

y In case of loss/damage in transit, a monetary claim should be lodged with the carrier

within the time limit to protect recovery rights

y Appointment of surveyor or claim representative in agreement with the insurer todetermine the nature, cause and extent of loss/damage

y The surveyor informs the insurer of the approximate value of loss incurredy The claim procedure takes from one to three weeks

y Marine Insurance is the oldest form of insurance in the world. Though the name indicates

that the policy covers the transit of goods only by waterways, it is not so. It coverstransportation of goods by rail, road, air as well as couriers. During this entire process of transportation, storage, loading and unloading, the goods are exposed to a large number

of perils. Goods are often lost or damaged due to the operation of these hazards and thereis a financial loss to the exporter/ importer. It is this loss that is taken care of by marine

cargo insurance or what is more popularly known as transit insurance.y



y This policy covers all goods while in transit depending upon the needs of the insured.Three broad types of cover are available-Institute Cargo Clauses ³A´, ³B´, ³C´. Institute

Cargo Clause ³A´ is the widest cover that is available on an all risks basis.

y Marine

Sales

Turnover PolicyMarine policies are generally either ³specific-voyage´ policies or ³declaration´ policies

for either imports, exports, indigenous transits of raw material or finished goods, customs

duty, transits from anywhere to anywhere in the world and to and from job works. Whilefor a specific policy, the cover is issued from commencement to landing at the final

destination, the other policies are generally continuous policies issued on an annual basisor for a specified period of time for an agreed value of transits based on the insured¶s

estimate of goods movement for the specified period. It is mandatory for all transits in theagreed period to be declared.

There have been operational lapses resulting in claims getting repudiated for declarations

not made or insufficient balance of Sum insured at the time of claim and many a clienthas been caught unaware. Discovering that a particular damaged or lost consignment was

unfortunately not covered, and hence the claim not payable, can be very frustrating for anotherwise diligent Insured.

In this context, a marine turnover policy has come in as a blessing for companies. It

covers a company¶s sales turnover unlike the other marine open policies which cover thevalue of goods which are offered for insurance. The company¶s annual estimated

turnover can be covered as a single amount and all a company needs to do is to providesales turnover figures periodically to the insurance company (usually quarterly). All the

requirements of a company¶s Marine policies can be met by a single comprehensive policy.

Marine-Hull Marine Hull insurance covers nearly everything that floats and moves, starting with

rowing boat to huge ocean going tankers. It covers loss or damage to hull and machinery.The hull is the structure of the vessel. Machinery is the equipment that generates the

power to move the vessel and control the lighting and temperature system such as boiler,engine, cooler and electricity generator. Just as a motor insurance policy is taken to cover

the vehicles plying on the road, similarly a marine hull policy is taken to cover thevessels.

MARINE INSURANCE

Marine insurance defined.Marine insurance defined. A contract of marine insurance is an agreement whereby the insurer

undertakes to indemnify the assured, in the manner and to the extent thereby agreed, againstmarine losses, that is to say, the losses incidental to marine adventure.



RULES FOR CO NSTRUCTIO N OF POLICYThe following are the rules referred to by this Act for the construction of a policy in the above or

other like form, where the context does not otherwise require:--Lost or not lost.

1. Lost or not lost.Where the subject-matter is insured "lost or not lost" and the loss has occurred

before the contract is concluded, the risk attaches unless, at such time the assured was aware of the loss, and the insurer was not.From.

2. From. Where the subject-matter is insured "from" a particular place, the risk does not attachuntil the ship starts on the voyage insured.

At and from.3. At and from. (a) Where a ship is insured "at and from" a particular place, and she is at that

place in good safety when the contract is concluded, the risk attaches immediately.(b) If she be not at that place when the contract is concluded, the risk attaches as soon as she

arrives there in good safety, and, unless the policy otherwise provides, it is immaterial that she iscovered by another policy for a specified time after arrival.

(c)W

here chartered freight is insured "at and from" a particular place, and the ship is at that place in good safety when the contract is concluded, the risk attaches immediately. If she be not

there332.when the contract is concluded, the risk attaches as soon as she arrives there in good safety.

(d) Where freight, other than chartered freight, is payable without special conditions and isinsured "at and from" a particular place the risk attaches pro rata as the goods or merchandise are

shipped; provided that if there be cargo in readiness which belongs to the ship-owner, or which some

other person has contracted with him to ship, the risk attaches as soon as the ship is ready toreceive such cargo.

From the loading thereof.4. From the loading thereof. Where goods or other movables are insured "from the loading

thereof", the risk does not attach until such goods or movables are actually on board, and theinsurer is not liable for them while in transit from the shore to the ship.

Safely landed.5. Safely landed. Where the risk on goods or other movables continues until they are "safely

landed", they must be landed in the customary manner and within a reasonable time after arrivalat the port of discharge, and if they are not so landed the risk ceases.

Touch and stay.6. Touch and stay. In the absence of any further license or usage, the liberty to touch and stay "at

any port or place whatsoever" does not authorize the ship to depart from the course of her voyagefrom the port of departure to the port of destination.

Perils of the seas.7. Perils of the seas. The term "perils of the seas" refers only to fortuitous accidents or casualties

of the seas. It does not include the ordinary action of the winds and waves.Pirates.

8. Pirates. The term "pirates" includes passengers who mutiny and rioters who attack the shipfrom the shore.



Thieves.9. Thieves. The term "thieves" does not cover clandestine theft or a theft committed by any one

of the ships company, whether crew or passengers.Restraint of princes.

10. Restraint of princes. The term "arrests, etc., of kings, princes, and people" refers to political

or executive acts, and does not include a loss caused by riot or by ordinary judicial process.Barratry.11. Barratry. The term "barratry" includes every wrongful act wilfully committed by the master

or crew to the prejudice of the owner, or as the case may be, the charterer.333.All other perils.

12. All other perils. The term "all other perils" includes only perils similar in kind to the perilsspecifically mentioned in the policy.

Average unless general.13. Average unless general. The term "average unless general" means a partial loss of the

subject-matter insured other than a general average loss, and does not include "particular charges".

Stranded.14. Stranded. Where the ship has stranded, the insurer is liable for the excepted losses although

the loss is not attributable to the stranding, provided that when the stranding takes place the risk has attached and, if the policy be on goods, that the damaged goods are on board.

Ship.15. Ship. The term "ship" includes the hull, material and outfit, stores and provisions for the

officers and crew, and, in the case of vessels engaged in a special trade, the ordinary fittingsrequisite for the trade, and also, in the case of a steamship, the machinery, boilers, and coals and

engine stores, if owned by the assured and also in the case of a ship driven by power other thansteam, the machinery and fuels and engine stores, if owned by the assured.

Freight.16. Freight. The term "freight" includes the profit derivable by a ship-owner from the

employment of his ship to carry his own goods or movable as well as freight payable by a third party, but does

notinclude passage money.

Goods.17. Goods. The term "goods" means goods in the nature of merchandise, and does not include

personal effects or provisions and stores for use on board.In the absence of any usage to the contrary, deck cargo and living animals must be insured

specifically, and not under the general denomination of goods.

There are four types of marine insurance:-

Hull Insurance:- covers the insurance of the vessel and its equipment i.e. furniture and

fittings, machinery, tools, fuel, etc. It is effected generally by the owner of the ship. Cargo Insurance:- includes the cargo or goods contained in the ship and the personal

belongings of the crew and passengers. Freight Insurance:- provides protection against the loss of freight. In many cases, the

owner of goods is bound to pay freight, under the terms of the contract, only when the



goods are safely delivered at the port of destination. If the ship is lost on the way or thecargo is damaged or stolen, the shipping company loses the freight. Freight insurance is

taken to guard against such risk. Liability Insurance:- is one in which the insurer undertakes to indemnify against the loss

which the insured may suffer on account of liability to a third party caused by collision of

the ship and other similar hazards.

In a contract of marine insurance,the insured must have insurable interest in the subject matter

insured at the time of the loss. Insurable interest is not required to be present at the time of takingthe policy. Under marine insurance, the following persons are deemed to have insurable interest:-

The owner of the ship has an insurable interest in the ship

The owner of the cargo has insurable interest in the cargo. A creditor who has advanced money on the security of the ship or cargo has insurable

interest to the extent of his loan. The master and crew of the ship have insurable interest in respect of their wages.

If the subject matter of insurance is mortgaged, the mortgagor has insurable interest in thefull value thereof, and the mortgagee has insurable interest in respect of any sum due to

him. A trustee holding any property in trust has insurable interest in such property.

In case of advance freight the person advancing the freight has an insurable interest in sofar as such freight is repayable in case of loss.

The insured has an insurable interest in the charges of any insurance policy which he maytake.

Types of Marine Insurance Policies:-

Voyage policy:- is a policy in which the subject matter is insured for a particular voyageirrespective of the time involved in it. In this case the risk attaches only when the ship

starts on the voyage. Time policy:- is a policy in which the subject matter is insured for a definite period of

time. The ship may pursue any course it likes, the policy would cover all the risks from perils of the sea for the stated period of time. A time policy cannot be for a period

exceeding one year, but it may contain a 'continuation clause'. The 'continuation clause'means that if the voyage is not completed within the specified period, the risk shall be

covered until the voyage is completed, or till the arrival of the ship at the port of call. Mixed policy:- is a combination of voyage and time policies and covers the risk during

particular voyage for a specified period of time. Valued policy:- is a policy in which the value of the subject matter insured is agreed

upon between the insurer and the insured and it is specified in the policy itself. Open or Un-valued policy:- is the policy in which the value of the subject matter

insured is not specified. Subject to the limit of the sum assured, it leaves the value of theloss to be subsequently ascertained.

Floating policy:- is a policy which only mentions the amount for which the insurance istaken out and leaves the name of the ship(s) and other particulars to be defined by



subsequent declarations. Such policies are very useful to merchants who regularlydespatch goods through ships.

Wagering or Honour policy:- is a policy in which the assured has no insurable interestand the underwriter is prepared to dispense with the insurable interest. Such policies are

also known as 'Policy Proof of Interest(P.P.I).



Deviation from route as described by SA Marine insurance Act 1906

Deviation in term of marine insurance Act 1906

Implied term in marine insurance are those of:

--legality

--due dispatch and deviation

--seaworthiness and dangerous goods

The warranty of due dispatch and deviation and that of seaworthiness

extend only to voyage policies

But may also apply to mixed policies to the extend that cover is related to a particular

voyage during the time of the cover

There is no warranty for seaworthiness in time policies

Implied dispatch, deviation and delay

Implied term required no deviation from a contractual voyage has been considered in

relation to risk

Delay or lack of reasonable dispatch is regarded as deviation in itself

Section 49(1) set the criteria on which the carrier can be exempted from delay or

deviation

--where authorized by any special term in the policy

--where caused by circumstance beyond the control of the master and his employer

Where reasonably necessary in order to complied with an express or implied warranty

--where reasonably necessary for the safety of the ship or subject matter insured

---for the purpose of saving human life or aiding a ship in distress where human life may be in danger

---where reasonably necessary to obtain medical or surgical aid for any person onboardship

Deviation, exemption

Justification for deviation or delay can be in a number circumstances

Save or attempt to save life example responding to a µmayday¶



Deviation made to avoid imminent danger---tornado, water spot

Deviation due to the fault of the chaterer---where you find the discharging port

nominated by the charterer to be unsafe

An involuntary deviation due to force majeure

Deviation made to safe property for salvage purpose

Stress of weather

To Insure safety of crews and vessel

Calling at a port of refuge

A master can proceed to a port of refuge if:

Dangerous shift of cargo

An inextinguishable fire

After suffering serious hull damage( from grounding, collision, heavy weather, loss of

plating)

Machinery failure not reparable at sea

Loss of propeller or rudder.

Steering gear failure

Chatterers

Owner---classification society surveyor

Agent at original destination port---port state administration, harbour authority, customs,immigration, port health.

P & I club correspondent

No deviation from the contractual route

In English common law when no route is stipulated in the carriage contract, the normal

geographical route, determined by the circumstance of the trade must be follow

But for a deviation to be consider legal, there most be an intentional deviation rather thana simple error as to the plotting of a course Rio Tinto vs Cede Shipping [1926] 24 LI

LRep316

Docking into an intermediate port or place for store or provisions which are not essentialto the safe completion of the voyage



Docking into an intermediate port for bunkers for a future voyage when there is no clausein the contract of carriage allowing it