SUBJECT: MARINE INSURANCE CLAIM AND LIABILITY

Professor: ATTY. ROEL S. SAGUID (LLM)

TOPIC: MARINE INSURANCE

SUBMITTED BY: CAPTAIN JOMER D. PASCUA,MM- Student MSM

ACTIVITY

Instructions: Distinguish land-based insurance from Marine Insurance? What is its

main distinction, if any? minimum 500words; maximum 700words Discuss. Use your
own words. Plagiarism is an academic crime. I know how to read the book. Explain
what you learned. Gentle reminder.

Comparison of Marine Insurance to Land-Based Insurance:

The main distinction of marine insurance to land-based insurance is the so-called

“indemnification”.

Indemnification:
It is an act of recompensating someone of his loss against damages due to
fortuitous events. In marine insurance loss against damages caused due to perils
of the sea, compared to land-based insurance it has an encompassing and wide
range of risks covered to indemnify the owner the amount of insurance that may
be carried out in the event of a loss against damages caused due to perils of the
sea-based on the plans chosen. This can be further categorized into various
types of insurance policy and specify terms in the insurance contract with a
limitation as to what type of incident/accident for which the insurance company
will pay as an indemnity. One of the terms uniquely found in a Marine Insurance
contract is the word “perils of the sea”.

Perils of the Sea:

“Perils of the sea” in a mariner’s term means innate accidents distinct to the sea
without human intervention or human error likewise known as “Act of God”. In
the aspect of human error, it must fall in the category of beyond human skills and
prudence in particular typhoons, dynamic forces like wind, current, and waves. In
the case of collision/allision, the liability of the vessel’s owner for the imprudence
of his ship’s Master, the officers and crew if the accident is considered beyond
human skills and prudence assess the risk and establish the premium to be paid
referring to the COLREG 1972 applied to all ships flying the flag of registry
ratified or the inland rules of the road and local law inside territorial waters. These
are well stipulated in Rule 2 of the Rules of the Road paragraph a and b which
states that:
“a. Nothing in these Rules shall exonerate any vessel, or the owner, master or
crew thereof, from the
consequences of any neglect to comply with these Rules or of the neglect of any
precaution which
maybe required by the ordinary practice of seamen, or by the special
circumstances of the case.
(b) In construing and complying with these Rules due regard shall be had to all
dangers of navigation and
collision and to any special circumstances, including the limitations of the
vessels involved, which maymake a departure from these Rules necessary to
avoid immediate danger.” 1 source: Convention on the International Regulations for
Preventing Collisions at Sea, 1972 (COLREGs)

The Marine Liability Insurance

The marine liability insurance can be likened to third-party insurance in motor
vehicles which can be encountered by the insured party. For example, when
cargo is being carried by a vessel and that vessel collided with another vessel
causing damages, the marine liability insurer will indemnify the vessel’s owner of
his liability incurred from the accident. Loss of or damage to any other vessel or
property caused by the insured vessel. This includes personal injury, illness or
death to the third party, maritime pollution, wreckage removal, and damaged or
lost cargo.
Hull and Machinery Insurance
The hull and machinery insurance can be likened to car comprehensive coverage
where the insured party is protected against physical damage to their
automobiles, the insurer provides physical damage protection for the vessels
including its machinery.
Since the soundness and normal operation of the hull and machinery of a ship is
key to the safe transportation and delivery of any cargo or freight, it is highly
advisable that ship owners purchase hull and machinery insurance.

REFERENCE:
1. Convention on the International Regulations for Preventing Collisions at Sea,
1972 (COLREGs)