To ensure that members understand the purpose of marine insurance, its principles and practice.
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Thoroughly understand the reasons for and application of marine insurance in shipping business. Thoroughly understand the division of the London marine insurance market between Lloyd’s, Insurance Companies and Protection & Indemnity Associations (P&l clubs) and their respective organisational structures. Be aware of the concept of mutuality in P&l Associations. Understand the role and function of an insurance broker. Understand the role and function of a Lloyd’s agent. Understand the different classes of risk covered by marine insurance, namely: Hull and Machinery Disbursements and increased value of hull Shipowners’ third party liability (including collision liability, contact damage to the property, death and personal injury, pollution liability) Excess liabilities in hull insurance Protection and Indemnity Mortgagees indemnity Employee liability Freight at risk and Freight for Hire Cargo insurance Cargo liability War and Strikes risks – hulls War risks – cargo Strikes risks – cargo
Understand the role of the Marine Insurance Act as it related to English law and practice today. Be aware of the perils in the SG policy (as expressed in the first schedule to the MIA, 1906) and the included and excluded perils in the MIA, 1906. Thoroughly understand the concepts of insurable interest and utmost good faith. Be aware of the practice of marine reinsurance and its purpose. Understand how the rights and benefits in a marine insurance contract may be assigned to another party. Understand the principle of insurable interest and how insurable value is determined. Understand the principle of subrogation and underwriters’ rights to take possession of insured property. Thoroughly understand the application of a marine insurance warranty and the effect of breach of such a warranty. Thoroughly understand the difference between an express warranty and an implied warranty. Thoroughly understand the implied warranty of seaworthiness and to which type of insurance does it apply. Understand the effect of unseaworthiness on a hull time policy. Thoroughly understand the principle of proximate cause.
Understand the roles of the International Underwriting Association of London (the IUA) and the Salvage Association. Understand the procedures adopted in the London market for effecting a marine insurance contract (in particular, the use and legal value of the broker’s slip and issue of policies and certificates). Understand the ways premium rates are assessed and applied. Understand the application of additional premiums and return premiums. Understand the standard practices for commissions paid to brokers in the London insurance market. Understand the difference between placing a cargo facultative risk and the operation of a cargo open cover. Understand the use of standard clauses used for attachment to marine insurance policies. Thoroughly understand the International hull clauses (01/11/03) and the International hull clauses – disbursements and increased value (01/11/03). Understand the following Institute time clauses – hulls: ITC hulls (1995) ITC hulls – total loss only (1995) ITC hulls – disbursements and increased value (1995) ITC freight (1995) Institute war and strikes clauses – time (1995)
Thoroughly understand the following Institute cargo clauses: ICC A conditions (1982) ICC B conditions (1982) ICC C conditions (1982) Institute malicious damage clause (1982) Institute war clauses – cargo (1982) Institute strike clauses – cargo (1982) Institute classification clause (2001) Important notice clause Understand the role of a Classification Society in hull practice and in relation to cargo open covers. Understand the concept of centralised policy signing and central accounting.
Thoroughly understand the concept of actual total loss, constructive total loss and compromised total loss. Thoroughly understand the definition of particular average. Clearly distinguishing it from general average. Understand the responsibility of the assured to make efforts to avert and minimise loss and to what extent sue & labour charges are recoverable under a marine insurance policy. Thoroughly understand the treatment of the deductible in a hull & machinery policy as applied to claims for particular average, sue & labour charges, salvage, salvage charges, also to collision liability claims, general average sacrifice and general average contribution. Thoroughly understand the principle of maritime salvage and how salvage services are remunerated. Understand the rules of International limitation of liability. Understand the need for professional indemnity insurance in regard to errors and omissions in broker practice. Thoroughly understand the impact of International legislation on pollution liability and measures taken in shipping and insurance practice to reimburse shipowners and others against such liabilities. Understand the role of average adjusters in marine insurance practice. Understand the role of the marine surveyor in hull insurance practice. Understand the role of a Classification Society surveyor in hull insurance practice.
Thoroughly understand the concept of general average. Understand the function of the York/Antwerp rules. Understand the difference between GA sacrifice, GA expenditure and GA contribution and to what extent these are covered by a marine insurance policy. Understand the duties of an average adjuster in relation to general average. Understand what is, and what is not, admissible in a GA settlement.
