ELEMENTS OF INSURANCE UNIT 3.pptx

ELEMENTS OF MARINE INSURANCE, FUCNTIONS,CLAUSES,WARRENTIES,KINDS,PREMIMUM,RE-INSURANCE,DOUBLE INSURANCE

1. ELEMENTS OF INSURANCE F. JOSEPHINE LENTA, ASSISTANT PROFESSOR DEPARTMENT OF COMMERCE , COLLEGE OF SCIENCE AND HUMANITIES, SRM IST RAMAPURAM

2. UNIT 3 MARINE INSURANCE

3. MARINE INSURANCE : Marine insurance is a form of insurance by which the insurer undertakes to indemnify the insured against losses incidental to marine adventure. The insured agrees to pay a certain sum of money called the premium in consideration of the insurer’s guarantee to make good the losses arising from certain specific perils .

4. ELEMENTS IN MARINE INSURANCE Utmost good faith S ubrogation Insurable interest Indemnity C ausa proxima W arranty

5. FUNCTIONS OF MARINE INSURANCE ( i ) Hull Insurance : The insurance of ships is known as ‘Hull insurance’. The subject matter of insurance is the ship or vessel which is subject to marine adventure and other dangers of navigation . (ii) Cargo Insurance: Goods sent by ship are known as cargo. Marine insurance of goods) Cargo is called the “The subject matter of insurance is called the “ Cargo insurance”. (iii ) Freight Insurance: Insurance of freight is termed as “Freight insurance”. If the freight is payable on the arrival of the ship at the port of destination, the shipping company may have to lose the freight on the non-arrival of goods safely at the port of destination.

6. WARRANTIES: Implied warranty: An implied warranty is always implied by nature to the contract of marine insurance, but need not be definitely expressed in writing on the face of the policy. There are three implied warranties in marine insurance. Expressed warranty: An warranty which is expressely represented is called expressed warranty

7. KINDS OF MARINE LOSSES ( i )Total loss ( ii) Constructive loss (A) Particular Average loss (B) General Average loss

8. PREMIUM FOR MARINE INSURANCE : The cost of premium decreases or increases as per the estimates that are made by the insurance provides. Marine insurance calculation helps you in deciding which plan of the parameters that help in estimating the insurance premium: Value of the goods Nature of the goods The inherent risk that your product can posses Construction ,route , and type of the vessel Any strike , political risk, civil commotion , and riots can hamper the delivery of the goods. History of incidents that happened with the insured.

9. RE – INSURANCE IN MARINE INSURANCE: According to Marine insurance act, the insurer under a contract of marine insurance, has an insurable interest in his risk, and re- insure in respect of it. This is called Re-insurance. It is also termed as insurance of insurance. Double insurance : Where two or more policies are effected by or on behalf of the assured on the same adventure and interest or any part thereof, and the sums insured exceed the indemnity allowed by this Act, the assured is said to be over-insured by double insurance .