Due to fraud and

intentional misconduct of
the insured

All Risk Policy - Free of Capture and Seizure

insures against all Exclusions (FC&S) Clause
conceivable loss or
damage Strikes, Riots and Civil
Hull Policy - loss or Commotion (SR&CC)
damage of the vessel

Perils of the Sea -

Builder's Risk Policy - pertains to natural
construction, conversion calamities
and repair of the hull.

Port Risk Only Pollicy - perils while the

ship is in port or damage while being
transferred from one dock to another Insurance Fire and Related
over VESSEL Perils

Jettison
Fleet Policy - fleet
of ships Named Perils
Policy - specifies Barratry
Perils
the perils insured
against. Assailing Thieves
Full Form Policy - both
total anf parti lossal
Risks Insured
Against All Other Like Perils
Total Loss
Only Policy
Inchmaree Clause

Running Down Clause

Running Down Clause -
liability for collision
Sue and Labor Clause
Clauses that Modify
Marine Protection and Coverage
Indemnity Insurance - liability Protection and Indemnity
arising from the chartering and Clause
owning of vessels. Insurance AGAINST
LIABILITY Institute War Clause
Excess Protection and Indemnity Insurance -
coversliability in excess of the value of the ship Memorandum Clause
xpn: (limited liability rule)

Water Pollution Liability

Ocean Marine Insurance

Trip Risk Cargo Policy - (1) national character of the insured;
particular shipment Insurance over GENERAL RULE: Insurer may (2) liability from capture and
EXCEPTIONS: Section 112 (merely
rescind the IC even if the risk detention; (3) liability from breach of
CARGO Concealment exonerates the insurer, not vitiate
concealed is not the cause of the foreign trade; (4) want of necessary
the entire contract)
Open Cargo Policy - blanket loss. documents; (5) use of false and
simulated papers
insurance during existence of
contract.
If a representation by the insured is
INTENTIONALLY FALSE in (1) any
material respect, or (2) any fact which
the character and nature of the risk
Freightage - all the benefits derived by depends, insurer may rescind.
the owner, either from the chartering of
Representation (Sec.113)
the ship or its employment for the
carriage of his own goods.
Insurance over
FREIGHT AND INCOME
In the absence of fraud, eventual
falsity of a representation as to Time Policy - at the
P 200,000 for every expectation does not avoid a MC. (Sec.
manifested passenger commencement of every
114)
voyage
In addition, P 50,000 for
Cargo Policy - at the
every survivor of a GR: At the time of the
Kinds of (1) Seaworthiness (Sec. commencement of each
maritime accident commencement of the EXCEPTIONS
Ascertaining and 115-120) particular voyage
IN CASE OF DEATH - death Compulsory Insurance Coverage for Insurance risk
Controlling Risks Voyage Policy - different
certificate and evidence to Passenger and Cargo (Domestic
establish payee stages, must be seaworthy
Shipping Act of 2004) at the commencement of
Claims Settlement - insurer shall pay claim each portion
WITHOUT THE NECESSITY of proving fault
or negligence on the part if the car carrier.

IN CASE OF BODILY INJURY Inland Marine

insurance that do not Requisites: (1) the vessel has the requisite
resulting in permanent Insurance documents of nationality or neutrality if
disability - certification relate to navigation (2) Documents of
Nationality or Neutrality expressly warranted; and (2) vessel will not
from a licensed physician itself or transit of
(Sec. 122) carry any documents which cast
goods and passenger.
reasonable suspicion.

Aircraft Hull
covers all risks Policy
"ground and flight"

implied warranty that:

(3)Legality (1) adventure is lawful;
and (2) insofar as the
(1) actual reliquishment of his insured can control,
interest carried out in a lawful
(2) constructive total manner.
loss
(3) abandonment be
neither partial nor
conditional.
(4) Made within a reasonable time after
receipt of reliable information of the MARINE INSURANCE (MC) Every deviation not
Abandonment Improper Deviation specified in Sec. 126 is
loss
Requisites for Valid improper. (Sec. 127)
(5) must be factual
Abandonment (Sec. (4) Against
(6) Made by giving notice to the 140-147) Improper Deviation Kinds of
insurer, either orally or in writing. Deviation (Sec. Deviation
(7) Notice must be explicit and must specify 123,124,125)
the particular cause of the abandonment. a.) Caused by circumstances over
*If all requisites are which the master nor the owner has
present, insurer may not any control
reject the abandonment.
*All the rights of the b.) When necessary to comply with
insured over the thing is a warranty, or to avoid a peril
transferred to the
insurer. Proper Deviation c.) When made in good faith and
(Sec. 126) upon reasonable grounds of belief
Implied Warranties
in its necessity to avoid a peril

Actual (Sec. 132) - total

destruction of the thing
insured d,) When made in good faith, for
the purpose of saving human
life or relieving another vessel in
Constructive (Sec. 141) - the distress.
thing has been reduced to such Total
a state as to make its total
destruction highly imminent or
Kinds of Loss Loss
its ultimate arrival doubtful
Presumed (Sec.134) - (1)
continued absence of the ship
for considerable length of time;
and (2) the vessel has not been EXCEPTION: if the ship is
heard of. hypothecated, II is limited to
the amount not covered by
Shipowner(SO)
loan

Partial - Every loss which is Charterer - to the extent he is liable to be

not total is partial. (Sec. 130) all the expenses and damages damnified by its loss
caused to the vessel or to her cargo
(1) there must be partial SHIP
which have not inured to the Lender on Bottomry - amount of
loss; and common benefit and profit of all loan
persons interested in the vessel and
Requisites for its Simple or her cargo. (5) Presence of
(2) there is under- application: Particular Average
Free from Particular Average Insurable Mortgagee
insurance (Sec. 138) (FPA) Clause - limits liability in
Interest (Sec.
case of partial loss.
102-108) (II) SO
Based on Sec. 159, the amount the insurer is required to
pay = PROPORTION BETWEEN THE AMOUNT INSURED AND Co-Insurance Clause
VALUE OF THE WHOLE INTEREST IN THE PROPERTY. (1) common danger CARGO
(Sec. 159) Shipper

(2) for the common safety,

THERE IS ALWAYS A CO- part of the vessel or cargo or Consignee (buyer) - has II even if
INSURANCE CLAUSE IN MARINE both is sacrificed goods are still on transit and no
INSURANCE deliberately. transfer of ownership yet.
Requisites:

Averages (3) there is successful saving

of the vessel and cargo. no II, if the shipper or charterer had
SO already paid the freightage in
General advance and without obligation to
Average refund in case of loss
(4) expenses and damages
should have been incurred or FREIGHTAGE
inflicted after taking proper AND
legal steps and authority. INCOME

How
computed Charterer - if under a bareboat
(Sec. 166) charter

Amount of Insurance/Value
of the Property Insured x GA
Contribution of the Insured
= Amount to be paid.