Elements Of Marine Insurance

elements of marine insurance

main aims of the unit

The main aim of this unit is to provide learners a clear knowledge and understanding of the principles of marine and general transport insurance markets and to familiarise them with the organisations involved in maritime insurance operations

 

learning outcomes for the unit

Upon successful completion of the course students will be able to:

• Provide an outline of the origins and history of marine insurance
• Describe the purpose and function of the insurance markets
• Describe the procedures whereby insurance is affected
• Identify and explain the relevant Acts which provide the rules governing marine insurance
• Explain the concepts of damage and loss and assess the implications
• Outline the main features of average and extraordinary loss

Learning and teaching methods/strategies used to enable the achievement of learning outcomes:

Learning takes place on a number of levels through lectures, class discussion including problem review and analysis. Formal lectures provide a foundation of information on which the student builds through directed learning and self managed learning outside of the class. The students are actively encouraged to form study groups to discuss course material which fosters a greater depth learning experience.

 

entry requirements

• Three GCSE’s / GCE`O’ levels and one `A’ level or equivalent qualification, or,
• An approved Foundation Certificate

Relevant experience is taken into consideration for students 21 years of age and over who have not completed any formal qualifications.

 

main topics of study

The Insurance Market

• General introduction to insurance as related to transport
• History and development of Marine Insurance and Lloyd’s
• Difference between Lloyd’s and Company Insurance Markets.
• Function and relationship of Underwriter and Broker
• Method of effecting Marine Insurance.
• Original slip
• Broker’s Cover Note
  
  

Fundamental principles of marine insurance

• Indemnity
• Insurable interest
• Marine Insurance Act 1906.
• Marine Insurance (Gambling Policies) Act 1909.
• Over placing’ and `Oblige line’
  
  

Policies

Nature of Policies:

Main types

• Hull
• Cargo
• Freight
• Specific purpose
• Valued/ unvalued
• PPI
• Open Cover (classification and `Basis of Valuation’ Clauses)
• ‘Floating’ (Certificate of insurance)
• Reinsurance
• The Institute Clauses- Time (Hull) and Cargo
• The maritime perils. Excluded losses
  
  

General Average

Partial Loss Total Loss – Active Constructive

Relevant factors:

• Notice of Abandonment
• Proximate Clause
• Valuation Clause
• Waiver Clause
  
  

Particular average and general average

York Antwerp Rules, 1974

General Average (relevant factors)

• Average Adjusters
• Average Bonds
• Average Contributions
• Average Deposits
• Average Statements
  
  

other extraordinary maritime expenditures

• Salvage
• ‘Sue and Labour’
• Subrogation
  
  

warranties

• Express
• Implied
• The Institute Warranties
  
  

Miscellaneous issues

• Deviation and Delay
• Returns of Premium
• Protection and Indemnity Associations
• Claims handling procedure
• P and I clubs
• Open Covers
• Floating policies
• Certificates of insurance

 

indicative reading for this unit

main text

Reeds Marine Insurance, B. Jervis (MacMillan)

alternative text and further reading

Marine Insurance Principles and Practice F.Templeman (Qureshi Press)

Marine Insurance Law O.Gurses (Routledge)

 

guideline for teaching and learning time

(10 HOURS PER CREDIT)

50 hours - lectures / seminars / tutorials / workshops:

Tutorial support includes feedback on assignments and may vary by college according to local needs and wishes.

50 hours - directed learning:

Advance reading and preparation / Class preparation / Background reading / Group study / Portfolio / Diary etc

100 hours - self managed learning:

Working through the course text and completing assignments as required will take up the bulk of the learning time. In addition students are expected to engage with the tutor and other students and to undertake further reading using the web and/or libraries.

 

assessment methods

Final Examination: 70%

Coursework: 30%