Marine Insurance

A policy which describes the insurance in general terms and leaves the name of the ship and other particulars to be defined by subsequent declarations is called---------?

• Time policy

• Voyage Policy

• Unvalued Policy

• Floating Policy

What is the effect of change of voyage i.e., when the destination is voluntarily changed from that which is contemplated in the policy?

• No effect- Insurer continues to be liable.

• Insurer is discharged from liability

If the course of voyage mentioned in the policy or the usual customary course (in case the course is not specifically mentioned in the policy) is departed from, it is called -------

• Deviation

• Change of voyage

• Delay

• None of the above.

What is the effect of a deviation?

• Discharges the liability of the insurer.

• It does not have any effect, as it is common practice to deviate from the course agreed upon.

A ship was supposed to undertake the course from A to B to C as per the policy. But before reaching B, due to uncontrollable weather conditions, the ship gets blown off track and eventually has to dock at D instead of B. After it sets off to C from D, it suffers damages which are covered for under the policy. Can the insurer avoid the policy on account of deviation?

• Yes. The ship did not follow the course agreed upon in the policy. Hence the insurer is not liable.

• Yes. The course taken was not the usual and customary course. Hence the insurer is not liable.

• No. The insurer cannot avoid the policy because the deviation was caused by circumstances beyond the control of the master or his employer.

What is meant by foundering at sea?

• The ship is missing and no news is received even after reasonable period of time.

• The ship strikes against a rock and suffers damages.

• The ship gets blown off track and gets stuck in shallow regions of sand.

• The ship collides with another ship and suffers damages.

Which of the following will not be covered by a marine policy while settling claims?

• Damages suffered on account of collision

• Losses due to shipwreck

• loss caused by pirates and thieves

• loss caused by rats or vermin

Answer explanation

Loss caused by rats or vermin, ordinary wear and tear, leakage and breakage, inherent vice or nature of the subject matter, injury caused to machinery not proximately caused by maritime perils etc. are not regarded as perils for which the insurer is liable.

When the master of the ship wilfully commits a wrongful act to the prejudice of the owner or the charterer, it is known as

• Barratry

• Piracy

• Maritime peril

• None of the above.

There is no implied warranty applicable to marine insurance.

• True

• False

Which of the following is a standalone implied warranty (implied in all circumstances irrespective of whether or not any express warranty is provided for in the policy)?

• Warranty of seaworthiness of ship

• Warranty of neutrality

• Warranty of good safety

• Warranty of nationality

Answer explanation

Warranty of neutrality and warranty of good safety are not implied warranties. The warranties as per S 36 and 40 of the Marine Insurance Act apply if they are expressly provided to be applicable in the policy. There is no implied warranty of nationality of the ship (s 37 of the Marine Insurance Act)