Scribd Logo
Upload

Welcome to Scribd!

  • 45 views

    Marine Losses

    Uploaded by

    capmaniraj
    The document discusses various types of marine losses including total losses, partial losses, and average losses. It defines actual total loss, presumed total loss, and constructive total loss. Partial losses are divided into particular average losses, which are accidental losses to the insured ship or cargo, and general average losses, which involve intentional sacrifices made for the common safety of the vessel and cargo. The document also covers topics such as tenders clauses, perils of the seas, barratry, deviation, and permitted deviations in marine insurance policies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Marine Losses

    Uploaded by

    capmaniraj
    45 views15 pages
    The document discusses various types of marine losses including total losses, partial losses, and average losses. It defines actual total loss, presumed total loss, and constructive total loss. Partial losses are divided into particular average losses, which are accidental losses to the insured ship or cargo, and general average losses, which involve intentional sacrifices made for the common safety of the vessel and cargo. The document also covers topics such as tenders clauses, perils of the seas, barratry, deviation, and permitted deviations in marine insurance policies.

    Original Title

    PA

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses various types of marine losses including total losses, partial losses, and average losses. It defines actual total loss, presumed total loss, and constructive total loss. Partial losses are divided into particular average losses, which are accidental losses to the insured ship or cargo, and general average losses, which involve intentional sacrifices made for the common safety of the vessel and cargo. The document also covers topics such as tenders clauses, perils of the seas, barratry, deviation, and permitted deviations in marine insurance policies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    45 views15 pages

    Marine Losses

    Uploaded by

    capmaniraj
    The document discusses various types of marine losses including total losses, partial losses, and average losses. It defines actual total loss, presumed total loss, and constructive total loss. Partial losses are divided into particular average losses, which are accidental losses to the insured ship or cargo, and general average losses, which involve intentional sacrifices made for the common safety of the vessel and cargo. The document also covers topics such as tenders clauses, perils of the seas, barratry, deviation, and permitted deviations in marine insurance policies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 15

    MARINE LOSSES

    Marine losses may be classified as


    follows:
    Total loss
    Actual
    Presumed
    Constructive

    Partial loss
    Particular Average
    General Average
    LAW _RGU revised 30/04/2015 1
    Definitions
    Actual Total Loss occurs when the subject
    matter is destroyed, or is so damaged as to
    cease to be a thing of the kind insured, or
    when the assured is irretrievably deprived of
    it.
    Presumed Total Loss. When the ship
    concerned in the adventure is missing her
    total loss may, after the lapse of a reasonable
    time, be presumed. Ordinarily, it will be
    presumed that the loss arose from "peril of
    the sea" which is an ordinary marine risk. But
    if the ship was last known to have been in a
    war-infested area then, in the absence of
    other evidence, the presumption will be that
    she was lost through war risk.
    LAW _RGU revised 30/04/2015 2
    Constructive Total Loss
    This occurs when the subject-
    matter is reasonably abandoned
    on account of its actual total loss
    appearing to be unavoidable, or
    because it could not be preserved
    from actual total loss without an
    expenditure that would exceed its
    value after the expenditure had
    been incurred.
    LAW _RGU revised 30/04/2015 3
    Constructive Total Loss
    In case of constructive total loss the
    assured may either retain possession
    and treat the loss as a 100% partial
    loss, or abandon the subject-matter to
    the underwriters and claim for total
    loss. If he elects to abandon he must
    serve notice of abandonment on the
    underwriters, otherwise the loss can
    be treated only as a partial loss.

    LAW _RGU revised 30/04/2015 4


    Constructive Total Loss
    In ascertaining whether the Vessel is a
    constructive total loss, the insured value
    shall be taken as the repaired value and
    nothing in respect of the damaged or break-
    up value of the Vessel or wreck shall be
    taken into account.
    No claim for constructive total loss based
    upon the cost of recovery and/or repair of the
    vessel shall be recoverable hereunder unless
    such cost would exceed the insured value. In
    making this determination, only the cost
    relating to a single accident or sequence of
    damages arising from the same accident shall
    be taken into account.

    LAW _RGU revised 30/04/2015 5


    Particular Average Loss
    This is defined by the Marine Insurance Act
    as a partial loss of the subject-matter insured
    caused by a peril insured against which is not
    a general average loss. It may, perhaps, be
    more directly described as a partial loss
    arising from any kind of accident. General
    average sacrifices and expenditures,
    particular charges, and salvage charges do
    not arise by accident and, therefore, are not
    included in particular average. A particular
    average loss falls directly upon the party
    interested in the subject-matter. In the case
    of accidental or fortuitous damage to the ship
    it is the shipowner or, to the extent that he is
    insured against such loss, his underwriters
    who must bear the loss.
    Similarly, in the case of accidental damage to
    cargo, the loss rests with the cargo owner or
    his underwriters.LAW _RGU revised 30/04/2015 6
    Egs
    There are innumerable varieties of
    particular average, including, such
    things as:
    straining of ship in bad weather,
    loss of masts or spars through heavy
    weather,
    damage to hull, machinery, or cargo
    due to heavy weather or fire,
    damage to ship or cargo due to
    collision or stranding

    LAW _RGU revised 30/04/2015 7


    Tender Clause
    The "Tender Clause" of the
    Institute Clauses usually attached
    to a hull policy requires that, in
    the event of any accident giving
    rise to a claim, notice shall be
    given to underwriters before
    survey or, if the ship is abroad, to
    the nearest Lloyd's agent so that
    an underwriters' surveyor can be
    appointed if desired.
    LAW _RGU revised 30/04/2015 8
    Tenders Clause
    The Tenders Clause was introduced to give the
    underwriters some control over the cost of repairs for
    which they were liable. As a matter of good practice
    the assured is expected to arrange for tenders to be
    taken, but this might lead to some delay in carrying
    out the repairs and hence loss of use of the vessel.
    The clause empowers the underwriters to decide
    which port and firm of repairers is to carry out the
    repairs. They may take their own tenders, or they may
    require further tenders to be taken for the repair of the
    vessel. The clause provides for an allowance to be
    claimed by the assured for the time lost between the
    despatch of the invitations to tender initiated by the
    underwriters, and the time of acceptance of a tender
    approved by them, even though such tender was one
    originally obtained by the assured. Such aIlowance is
    reduced by amounts that the assured otherwise saves,
    is allowed in general average or recovers from third
    parties for detention.
    Although rarely exercised, underwriters reserve the
    right to deduct 15% from the claim if the assured does
    not comply with the terms of this clause
    LAW _RGU revised 30/04/2015 9
    INSTITUTE CLAUSES
    There are numerous sets of these
    Institute clauses, so called because
    they are framed and sanctioned by the
    Technical and Clauses Committee of
    the Institute of London Underwriters.
    The current sets of clauses listed and
    described here are for use only with
    the new Marine Policy Form. Which
    particular set will be attached in any
    given case will depend upon the nature
    of the subject-matter insured and what.
    risks it is intended to cover.

    LAW _RGU revised 30/04/2015 10


    perils of the seas
    The term "perils of' the seas" refers
    only to fortuitous accidents or
    casualties of the seas such as
    stranding, collision and heavy weather.
    It does not include the ordinary action
    of the wind and waves. The object
    of'the insurance is to indemnify the
    assured against losses arising from
    accidents that may happen, not in
    respect of events which must happen.

    LAW _RGU revised 30/04/2015 11


    Barratry
    "Barratry" includes every wrongful act
    wilfully committed by the master or crew
    to the prejudice of the owner or charterer.
    For example, wilfully running the ship'
    ashore with fraudulent intent; fraudulently
    selling the ship, her equipment or cargo;
    sailing in breach of an embargo; willfully
    assisting illegal immigration; smuggling
    without the owner's consent, are all acts
    of barratry. Presumably the reason for
    making this peril subject to the proviso of
    due diligence by the owner is to allow the
    underwriters to decline liability if they feel
    that the owner has not been careful
    enough in selecting his crew.
    LAW _RGU revised 30/04/2015 12
    DEVIATION
    A voyage policy may enumerate ports
    of call, or it may give leave to call at
    "any ports or places whatsoever". This
    expression, however, is very restricted
    in its meaning and the liberty given is
    only to call at the usual ports on the
    particular voyage. If the ship deviates
    without lawful excuse, the
    underwriters are discharged from
    liability from the time of the deviation,
    and it is immaterial that the ship may
    have regained her route before loss
    occurs.
    LAW _RGU revised 30/04/2015 13
    Eg
    There is a deviation whenever: –
    (a) the route designated by the policy is
    departed from;
    (b) if no route is designated, the usual route is
    departed from.
    Where ports of discharge in a given area are
    not named, or not mentioned in any special
    order, the ship must go to them in strict
    geographical order. Failure to do so amounts
    to deviation.
    An intention to deviate will not void the policy
    if a loss occurs before the ship actually
    deviates

    LAW _RGU revised 30/04/2015 14


    Permitted deviation(s)
    Section 49 of the Marine Insurance Act 1906 provides that deviation
    or delay in
    prosecuting the voyage contemplated by the policy is excused: –
    (a) where authorised by any special term in the policy; or
    (b) where caused by circumstances beyond the control of the
    master and his
    employer; or
    (c) where reasonably necessary in order to comply with an express
    or
    implied warranty; or
    (d) where reasonably necessary for the safety of the ship or subject-
    matter
    insured; or
    (e) for the purpose of saving human life, or aiding a ship in distress
    where
    human life may be in danger; or
    (f) where reasonably necessary for the purpose of obtaining medical
    or
    surgical aid for any person on board the ship; or
    (g) where caused by barratrous conduct of the master or crew, if
    barratry be one of the perils insured against
    LAW _RGU revised 30/04/2015 15

    You might also like