The Marine Insurance Blog

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These are both out of date forms of early reinsurance.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: Djai Tanji

The Classification Societies are the loss preclusion arm of the industry with the job of determining the seaworthiness of a vessel. It is a marine engineering type service so it means that exact standards must be met and non compliance will end up in a change in classification. A number of societies are monitored by the US Coast Guard to verify which are most accurate in setting seaworthiness. One of the important warranties in the hull coverage is that the vessel cannot change classification. When a society amends a vessel’s classification, the underwriter must be informed and permitted to decide whether to continue providing coverage or not. If the underwriter is not informed, of course coverage will be void.

by: Djai Tanji

Ocean Marine and Liability Coverage is called Protection and Indemnity or P&I coverage. P&I covers bodily injury and property damage to the common public and to the master crew. Legal liability is also covered by this for the cargo of others that are carried. A pollution segregation section is profoundly attached to the basic policy and it depends on the P&I Society writing the coverage and their analysis of the loss possibility. One of the biggest writers of ocean marine coverage is Lloyd’s of London and because insurance for oceangoing vessels is deeply reinsured it is highly probable that Lloyd’s is involved in most contracts protecting ocean going vessels.

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.

One of the important things you should consider in getting marine insurance is whether to get Actual Cash Value or Agreed Value.

Here’s the difference.

Actual Cash Value is simply mean that the boat’s actual value at the time it was destroyed, damaged, or repaired. Depreciation is always factored in, so you will probably get less. However, Actual Cash Value marine insurance policies are cheaper and more affordable, so if your boat isn’t that that expensive, then this could be the recommended choice for you.

Agreed Value, on the other hand, is more expensive. When you sign the policy, there is a preset amount on your boat, and in the event of a total loss, the insurance company will pay you the full amount stipulated in the policy. The same goes with replacing equipment – new parts are covered and installed without any further ado.

Some insurance firms now accept insurance for jet-ski’s as part of their marine insurance packages due to growing popularity. The number of jetski’s has increased a lot as more and more people love to play in the water. Summer is here and have you checked your other insurance policies(boat, yacht or other watercraft), might have forgotten to renew or update it with new add-on’s such as the new navigation system and other stuff. Like a home insurance policy, you can get your accessories included with the policy so you can get them replaced in case of tragedy.
Tow your boat with a trailer? Then check with the insurance policy of your car if you get coverage for the trailer or boat you are towing in case it is stolen. Most insurers do end up recovering your car but what about your trailer? These are some of the questions you should be asking your insurer next time you renew or upgrade your marine insurance, to be safe on water and out.