The laws relating to fire and marine insurance are of practical application to the industry, management and commerce sector. Therefore, a broad overview has been the attempt in this presentation.
5. CONCEPT
Pooling of resources capable of being
distributed in times of calamities such as
fire, floods, epidemics and famine etc.
6. INSURANCE
It is the act of providing against a possible
loss, by entering into a contract with one
who is willing to give assurance, that is, to
bind himself to make good such loss,
should it occur.
9. The interest of the insured must exist
a) Life at the time of effecting the insurance
b) Marine Insurance at the time of loss
c) Fire throughout the period insured
10. Insurance is a method of sharing financial
losses of few from a common fund who
are
equally exposed to the same loss.
21. ASSURANCE
Assurance in contract means “making
secure”, insure. It means the act of
assuring, a declaration tending to inspire
full confidence.
22. ASSURANCE AND INSURANCE
There is a tendency to use “Assurance” for
contracts of “life insurance” and
“insurance”
for risks upon property.
An assurance represents the principle and
insurance the practice.
26. PARTIES
1. Insured. Party effecting insurance
(individual, company, firm or corporate
body etc.).
2. Insurer. Party granting the protection
under an insurance policy.
3. Policy. It is the evidence of contract.
28. UTMOST GOOD FAITH
Since insurance shifts risk from one party
to another, it is essential that there must
be utmost good faith and mutual
confidence between the insured and the
insurer.
29. WARRANTY
means
an assurance by the assured that he will not
do some particular thing or will fulfil any
condition that are decided in advance.
30. ASSIGNMENT
means
transfer of rights and liabilities of an
insured to another person who had
acquired insurable interest in the property
insured.
31. INSURABLE INTEREST
A person who is so interested in a a
property
as to have benefit from its existence and
prejudice by its destruction is said to have
insurable interest in the property. Such a
person can insure the property against fire.
32. Usual Types of General Insurance
1. Marine
2. Fire
3. Miscellaneous
33. MARINE INSURANCE
It is an agreement whereby the insurer
undertakes to indemnify the assured, in the
manner and to the extent thereby agreed,
against marine losses, that is to say, the
losses incidental to marine adventure.
34. A large proportion of marine insurances
is made at the risk of individuals called
underwriters.
35. MARINE INSURANCE
1. Hull Insurance. The loss associated with
the floating crafter.
2. Cargo Insurance. Loss or damage to
goods during transit by rail, road, sea or
other.
36. Marine insurance covers the loss or
damage of ships, cargo, terminals and
any transport or property by which cargo
is transferred acquired or held between
the points or origin and final destination.
38. Maritime Perils
means
the perils consequent on, or incidental to,
the navigation of the seas that is to say,
perils of the sea, fire, war perils, pirates,
rovers, thieves, captures, seizures,
restraints and detainments of princes and
people.
39. MARINE INSURANCE
Almost all policies are agreed value policies.
The insured and the insurer agree that the
sum insured is the value of the property
insured so that the agreed amount is
payable in case of total loss.
40. Mixed Sea and Land Risks
Section 4
A contract of marine insurance may, by
its express terms, or by usage of trade,
be extended so as to protect the assured
against losses on inland waters or on any
land risk which may be incidental to any
sea voyage.
41. FIRE INSURANCE BUSINESS
A contract of insurance by which the insurer
agrees for consideration to indemnify the
assured upto a certain extent and subject to
certain terms and conditions against loss or
damage by fire, which may happen to the
property of the assured during a specific
period.
42. FIRE INSURANCE CONTRACT
Principle Object. Insurance against the loss
or damage occasioned by fire.
Insurer’s Liability. Limited by the sum
assured and not necessarily by the extent of
loss/damage sustained by the insured.
Insures. Has no interest in the safety or destruction
of the insured property apart from the liability
undertaken under the contract.
43. RISKS COVERED UNDER FIRE
INSURANCE
1.
2.
3.
4.
Fire
Lighting
Aircraft damage
Riots, strikes, malicious and terrorism
damage
5. Storm, cyclone, typhoon, tempest,
hurricane, tornado, flood and inundation
44. 6. Impact damage
7. Subsidence and landslide including
rockslide
8. Bursting and/or overflowing of water
tanks apparatus and pipes
9. Missile testing operations
10. Bus fire
45. RISKS NOT COVERED BY FIRE
INSURANCE POLICY
1. Theft during or after the occurance of
any insured risk
2. War or nuclear peril
3. Electrical break downs
4. Ordered burning by a public authority
Sub terranean fire
46. APPROACH
Fire policies have to be assigned with the
consent of the insures.
Marine cargo policies can be freely assigned
without the consent of the insurer, the logic
being that the ultimate buyer is usually not
known at the time of taking the cover.
47. MOTOR VEHICLE
If the vehicle is a total loss, the sum insured or the
value of the vehicle, whichever is less is paid.
If the vehicle is damaged, the cost of repair is paid.
If the parts are replaced, the cost of new parts will
be subjected to the depreciation.
In all cases, the age and general maintenance of
the vehicle is considered.
49. The losses against which a merchant or ship
owner is not protected by insurance.
a)
b)
c)
d)
e)
f)
Acts of own government
Breaches of the revenue laws
Breaches of the law of nations
Consequences of deviation
All losses arising from unseaworthiness
All loss arising from unusual protraction of the
voyage
g) All loss to which the ship owner is liable when
his vessel does damage to others