Trade Practice & Incoterms

What is a pre-condition for a risk to be insurable?

• Loss must be fortuitous

• There must be insurable interest

• Loss must not be excessive

• It must not be against public interest

• Actual loss itself must be unforeseen

Define and explain the 4 Principles of Marine Insurance.

Marine Adventure is an Adventure in which...

• -          Any property that is insured (Ship, Goods or Cargo) is exposed to maritime perils (Risks)

• Any earning or acquisitions of freight, commissions, profits, financial benefits, any security on advances, loans, disbursements etc. are endangered by exposure of the insured property to maritime perils

• -          Any liability to third party, which may be incurred by the owner, or any person responsible for the insured property is exposed to maritime perils

• the insurer undertakes to indemnify the assured in manner and to the extent thereby agreed, against marine losses, that is to say, the losses incident to marine adventure

What are maritime perils?

Examples of Maritime Perils

(a)  

Examples of Maritime Perils

(a)  

Examples of Maritime Perils

(a)  

Examples of Maritime Perils

(a)  

Hull & Machinery deals with the ship asset (Hull, propulsion machinery and any equipment used for trade activities such as cargo/ballast handling etc.)

• True

• False

Third Party Claims (P&I Insurance) is a club set up for mutual insurance group

• True

• False