The Marine Insurance Blog

Troubles at sea can result in big losses for companies relying on the products on board. No agency tracks how much cargo is lost at sea around the world each year.

However because ships can hold such huge loads, accidents take on a large extent. One sunken ship can carry thousands of cars worth tens of millions of dollars. There is a great need for marine and ocean protection, as the marine entrepreneur must be protected against an ever-increasing suit-conscious public.

Ocean marine insurance covers material goods damage and liability to both cargo being shipped and the vessels containing them. The coverage can be divided into commercial and personal lines. Ocean marine insurance consists of several types of coverage.

Cargo policies cover loss or damage to goods being shipped, while hull policies cover vessels shipping the goods. There are two types of hull coverage: blue water hull, pertaining to maritime vessels, and brown water hull, which covers ships and boats on rivers and lakes. Different lines of ocean marine coverage appeal to different customers; importers and exporters usually buy cargo policies, while ship holders more frequently obtain hull and liability insurance.

The Container Owners Association calculates that a fully loaded 20-foot dry freight container will float because its volume displaces 83,000 pounds of water, more than its weight of 30 tonnes or 66,000 pounds. Mathematically, it would float with 18 inches sticking out of the water. However, if water enters and increases the weight to over 83,000 pounds, the container will sink. Floating containers were previously shot at or exploded to sink them and reduce their danger to ships because this was less expensive than salvage costs for towing and recovery. This is now illegal because of the pollution risk it poses.

The Container Owners Association provides some information collected from its members about floating shipping containers. How long a container cast adrift or fallen overboard will float before sinking depends on the container and its cargo. It is possible for containers to sink instantly or stay adrift for years. However, even empty containers may not watertight and sink almost immediately. Containers with large but low-density cargo have a better chance of floating. COA members say that the “sub-floater” or container that is submerged just below the water level, is a myth that can be disproven with the laws of physics.

Image by elbfoto

by Andrea

An Excess is the total payable by the insured and is more often than not expressed as the primary quantity falling in the occurrence of a loss. An excess can either be applied or not. It can be conveyed in either financial or proportion terms. An excess is normally used to dampen moral danger and to do away with small claims, which are unreasonably exclusive to deal with. The corresponding term to “excess” in marine insurance is “deductible” or “retention”. A license is a deductible and is allocated and clear of  the complete amount insured which is payable. It is predictably used in reinsurance arbitrage agreements.

by Andrea

These are both out of date forms of early reinsurance. Both are theoretically unlawful, as not having insurable interest, and so were unenforceable by law. Procedures were habitually evident as proof of interest. Their use sustained into the 1970s before they were disqualified by Lloyd’s. By that time, there have been nothing more than crude stakes. A “tonner” was merely a guiding principle setting out the universal gross tonnage loss for a year. If the loss was reached or exceeded, the policy renumerated. A “chinaman” employed the same belief but in reverse: thus, if the limit was not get through, the policy is said to be paid out.

According to Charlie Lee of Ezine articles (http://ezinearticles.com/?expert=Charlie_Lee), “A marine gps navigational unit needs to use at least 12 of the 24 satellites calculating your position. All 24 would be the best, of course. And a larger screen for reading and viewing the water below the boat would be ideal.”

Smaller units are ideal for personal use and would not risk the safety of a whole ship, however, if you are buying a system for the latter, you need to shell out some money and invest on something that is more advanced and bigger such as a 7-inch toushscreen LCD.

http://ezinearticles.com/?How-To-Find-The-Best-Marine-GPS-For-Your-Boat&id=1037870

by Andrea

The Lloyd’s Open Form is a regular contract, even though other forms exist. The Lloyd’s Open Form is headed “No cure – no pay”; the purpose of the attempted recover has failed and no award will be given. On the other hand, this code has been destabilized in current years, and rewards nowadays are permitted. Even if the ship might have ruined, pollution will be avoided or alleviated. In other situations, the “salvor” may suggest the SCOPIC terms in disparity to the LOF (Lloyd’s Open Form). These terms signifies that the salvor will be paid even if the rescue attempt has failed. The main depressing issues in inducing SCOPIC  is if the recover attempt is triumphant.

by Andrea

A peculiarity of marine insurance, and insurance law in general, is the use of the provisions and requirements as well as the warranties. In English law, a condition customarily explains a part of the contract that is essential to the accomplishment. If it commits a breach, the contract as a whole is not valid. On the contrary, a service contract is not necessary to the performance of the contract and violation of a warranty will not direct to a breach of the contract. The connotation of these terms is upturned in insurance law. As a consequence, the Marine Insurance Act 1906 refers to indirect warranties, one of the most significant of which the craft is seaworthy.

Filing for a claim is not that easy. Make sure that you had understood what the policy states and what it covers and not. Marine insurance does not cover loss, damage or expense caused by war, hostilities or warlike acts, civil commotions, labor disturbances and the like.

Loss, damage and liability or expense resulting from the personal act or mission of the assured done with the intent to cause such loss damage, liability or expense, or recklessly and with knowledge that such loss, damage, liability or expense would probably result is not covered as well.