1.Principle & Practice of Insurance ACM- 401 Presented by: Hina Varshney B.Com (IV Sem) 12D012

2. Marine Insurance According to the Marine Insurance Act 1963, An agreement whereby the insurer undertakes to indemnify the assured, in the manner & to the extent thereby agreed, against losses incidental to marine adventure. It may cover loss or damage to vessels, cargo or freight. 3. History of Marine Insurance Marine insurance was the oldest form of insurance. Evidence can be seen in Vedic civilization & Mesopotamian civilization. Firstly developed in England & imported from the cities of northern Italy. Maritime insurance was the earliest well developed kind of insurance. Origins in the Greek & Roman maritime loan. Separate marine insurance contract developed in genoa & other Italian cities in 14th century & spread to Northern Europe. Premiums varied with spontaneous estimates of the variable risk like seasons & pirates. 4. History of Marine Insurance cont... In the late 1680s, the Edward Lloyd opened a coffee house on tower street. Popular haunt for ship owners, merchants & ship captains. 1906 Marine insurance act organized the previous common law. It is both an extremely thorough & concise piece of work. Title of the Act refers to marine insurance, the general principles have been applied to all non- life insurance. Lloyds & the institute of London underwriters developed standardized clauses. 5. Marine policy A contract is inadmissible in evidence, unless it is evidenced by a marine policy in accordance with this Act. A marine policy may be executed and issued when the contract is concluded or afterwards. A marine policy must specify: the name of the insured or of a person who effects the insurance on behalf of the insured; the subject-matter insured; the perils insured against; cont. 6. Marine policy the voyage or period, or both, covered by the insurance; the sum insured; and the name of the insurer A marine policy must be signed by or on behalf of the insurer. Notwithstanding subsection (1), where the insurer is a corporation, the corporate seal is sufficient. Where a marine policy is subscribed by or on behalf of two or more insurers, each subscription, unless the contrary is expressed, constitutes a distinct contract with the insured. cont. 7. Marine policy A marine policy must specify the subject-matter insured with reasonable certainty, but need not specify the nature and extent of the interest of the insured in that subject-matter. A marine policy may be a voyage policy or a time policy. A marine policy may be a valued policy or an unvalued policy. A marine policy may be floating policy. 8. Voyage o A course of travel or passage, especially a long journey by water to a distant place. o A passage through air or space, as a flight in an airplane or space vehicle. o A journey or expedition from one place to another by land. o Often, voyages. journeys or travels as the subject of a w ritten account, or the account itself: the voyages of Marco Polo. 9. Marine adventure Subject to the provisions of this Act, every lawful marine adventure may be the subject of a contract of marine insurance. In particular there is a marine adventure where : Any ship goods or other moveable's are exposed to maritime perils. Such property is in this Act referred to as "insurable property"; The earning or acquisition of any freight, passage money, commission, profit, or other pecuniary benefit, or the security for any advances, loan, or disbursements, is endangered by the exposure of insurable property to maritime perils; 10. Marine adventure cont.. Any liability to a third party may be incurred by the owner of, or other person interested in or responsible for, insurable property, by reason of maritime perils. 11. Perils of sea Perils of the Sea is a maritime and insurance term for "those causes of loss for which the carrier is not legally liable; the elemental risks of ocean transport. every accidental circumstances not the result of ordinary wear and tear, delay, or of the act of the assured, happening in the course of the navigation of the ship, and incidental to the navigation, and causing loss to the subject-matter of the insurance." 12. Perils of sea These would include storms, waves, and wind; collision; grounding; fire, smoke and noxious fumes; flooding, sinking and capsizing; loss of propulsion or steering; and any other hazards resulting from the unique environment of the sea. War perils, "pirates, rovers, thieves, captures, seizures, restraints, and detainments of princes and peoples, jettisons and barratry" are also regarded as perils of the sea. It is generally held that it does not include the ordinary action of the winds and waves. 13. Reference www.admiraltylaw.com/statutes/Marine%20Insuran ce%20Act.htm en.wikipedia.org/wiki/Marine_insurance DEI Study Material dictionary.reference.com/browse/voyage http://www.conservapedia.com/Perils_of_the_Sea http://www.jus.uio.no/lm/england.marine.insurance.a ct.1906/03.html