The Marine Insurance Blog

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.

船乗りに良いお知らせ！ マーケットウォッチ（Marketwatch.com） はファイアーマンズ・ファンド保険会社（Fireman’s Fund Insurance Company）が自然にもやさしい保障内容をグリーン船体と機械製品まで広げると発表しました。 この海洋業界初の自然対応保障はタグボート、フェリー、商業漁船や沖にある建設物のサービス船舶などの船舶の所有者が新しい米国連邦政府の空気基準を満たしていることを保障するという内容です。 この新しい保障は、環境保護機関（EPA）が新しい海洋排出基準を定めた際に、船舶機関の大幅な修理を必要とする船舶所有者が保険漏れする可能性があるから設けられました。 新しい米国連邦政府の定めでは古い船舶機関が大幅な修理や取替えが必要な際に、厳しい環境基準を満たす改良もしくは取替えをしないといけないとしています。 壊れている箇所の修理直前状態までの修理や取替えまでしか保障されなかった既存の船体や海洋機械保険とは違い、このグリーン船体と機械保険は米国連邦政府の定めた基準を満たす最も効率の良いモデルと交換、又は修理する事ができます。 もし一つの船舶機関が壊れたとすると、この保障はもう一つの船舶機関も、効率パフォーマンスを同調させるために、その改良費の一部を負担します。

Economists and industry experts had high hopes for the marine insurance industry which was seen performing solid last 2007. This made it easy for people to predict better than usual earnings for the industry last year but year end statistics and financial information shows higher than usual losses in income due to high claims filing and other factors. The experts took another look at the industry and were forced to revise predictions opposite previous expectations. Like other coverage areas of the insurance industry, losses are mounting and the recession in the US and in the UK are not helping either. The goods are flowing as they always have but shippers are having to file claims as losses have to be trimmed down lessening income of insurers.
Extreme weather has also caused many a delay and damage to ships and the cargo they carry resulting in higher than normal claims. The warmer weather is making seas rougher and these storms are getting worse, hopefully the economic storm ends faster than their watery counterparts giving the industry time to recover from the losses of yesterday.

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Marine Insurance, protects the loss or damage of ships, cargo,terminals and any transportation vehicle or property through which cargo is transferred, gained or temporarily held from the point of origin to its destination. Marine Insurance law started in 1601 in England with the creation of a specialized chamber of assurance distinct from the other courts.
The Lord Chief Justice Mansfield in the middle of the eighteenth century, started combining merchant law with common law principles. The emergence of Lloyd’s of London, other competing insurance companies, a rapidly forming network of specialists like the ship brokers, bankers, admiralty lawyers and the spread of the British Empire made English law distinguished in this category which eventually became the basis for the modern practice of Marine Insurance Law. Nowadays, Marine Insurance is often clustered with Aviation and Transit (cargo) risks, otherwise known by the acronym ‘MAT’.

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Since competition is tight in the insurance industry, customers can sometimes be confused on which one to get. The first thing to be considered when looking for the right boat insurance provider is a solid financial stability. The easiest way to check companies on this is through the internet. You can begin scrutinizing those providers with a wide clientele base because this is more or less a good sign. Test their customer relations section. If they respond promptly, then chances are, they have an established system of rendering customer service which more or less will be evidenced by their efficiency and empathy to their customers.
A good marine vessel insurance provider usually has a strong network of claims center that renders swift emergency services and helpful associates and repair people who are there when you and your boat need them the most.

Good news for you sailors out there! Marketwatch.com recently reported that Fireman’s Fund Insurance Company is now expanding its environmentally-friendly coverage to watercraft with a new green Hull and Machinery product. This is the first-ever green insurance available in the marine industry, designed to ensure vessel owners meet new federal environmental air standards with their tugs, ferries, commercial fishing vessels, and offshore service vessels. This new insurance came about because new marine emissions regulations established by the Environmental Protection Agency are creating a potential coverage gap for vessel owners facing major engine repairs. The new federal mandates require upgrades to strict environmental standards whenever older engines require replacement or substantial rebuilding. Unlike most existing hull and marine equipment policies that only cover restoration of damaged equipment to its previous operational condition, the green Hull and Machinery coverage will repair or replace the damaged engine with the most efficient model available to meet federal air quality requirements. In the event of a total loss to one engine, this coverage will also cover a portion of upgrades to the undamaged engine to match efficiency performance.

There are a large number of yacht insurance providers to choose from; although this may sound good for the customer, it can be perplexing finding exactly what you want. The types of plan will vary from one insurance provider to another; finding the right policy can be a chore.

A good yacht insurance policy should have a balance of low cost and superior service; however, do not ever sacrifice quality for cost. There are more intricacies involved with marine policies than other types of cover; deciding on which policy to sign up with can be a troublesome business. However, if you try and use the pointers highlighted above you should find the process a little simpler in finding the right yacht insurance.

Don’t weigh yourself down with the intricate details of every policy at this point; researching the finer details of each policy is easier when you have produced a smaller list. Carrying out these simple suggestions you should help with your final decision; the last thing needed after signing the policy is too find there’s a problem with the marine insurance company.