marine ins project final
TRANSCRIPT
-
7/31/2019 Marine Ins Project Final
1/34
MARINE INSURANCE
-
7/31/2019 Marine Ins Project Final
2/34
GROUP MEMBERS
Name Roll No.Rashmi Amesar 01
Yash Kothari 26
Mihir Shah 49
-
7/31/2019 Marine Ins Project Final
3/34
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.
-
7/31/2019 Marine Ins Project Final
4/34
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
-
7/31/2019 Marine Ins Project Final
5/34
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.
-
7/31/2019 Marine Ins Project Final
6/34
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.
-
7/31/2019 Marine Ins Project Final
7/34
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.
-
7/31/2019 Marine Ins Project Final
8/34
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.
-
7/31/2019 Marine Ins Project Final
9/34
BRANCHES OF MARINE
INSURANCE
MARINE INSURANCE HAS TWO BRANCHES:
1. OCEAN MARINE INSURANCE:
OCEAN MARINE INSURANCE COVERS THE PERILS OF THE
SEA.
-
7/31/2019 Marine Ins Project Final
10/34
2. INLAND MARINE INSURANCE:
INLAND MARINE INSURANCE IS RELATED TO THE INLANDRISKS ON THE LAND.
-
7/31/2019 Marine Ins Project Final
11/34
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.
-
7/31/2019 Marine Ins Project Final
12/34
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.
-
7/31/2019 Marine Ins Project Final
13/34
TYPES OF MARINE
INSURANCE
CARGO INSURANCE: CARGO INSURANCE CATERSSPECIFICALLY TO THE CARGO OF THE SHIP AND ALSOPERTAINS TO THE BELONGINGS OF A SHIPS
VOYAGERS.
-
7/31/2019 Marine Ins Project Final
14/34
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.
-
7/31/2019 Marine Ins Project Final
15/34
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.
-
7/31/2019 Marine Ins Project Final
16/34
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.
-
7/31/2019 Marine Ins Project Final
17/34
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.
-
7/31/2019 Marine Ins Project Final
18/34
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.
-
7/31/2019 Marine Ins Project Final
19/34
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 -
7/31/2019 Marine Ins Project Final
20/34
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.
-
7/31/2019 Marine Ins Project Final
21/34
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
-
7/31/2019 Marine Ins Project Final
22/34
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.
-
7/31/2019 Marine Ins Project Final
23/34
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.
-
7/31/2019 Marine Ins Project Final
24/34
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
-
7/31/2019 Marine Ins Project Final
25/34
-
7/31/2019 Marine Ins Project Final
26/34
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/ -
7/31/2019 Marine Ins Project Final
27/34
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/ -
7/31/2019 Marine Ins Project Final
28/34
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/ -
7/31/2019 Marine Ins Project Final
29/34
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.
-
7/31/2019 Marine Ins Project Final
30/34
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.
-
7/31/2019 Marine Ins Project Final
31/34
-
7/31/2019 Marine Ins Project Final
32/34
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.
-
7/31/2019 Marine Ins Project Final
33/34
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/ -
7/31/2019 Marine Ins Project Final
34/34
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/