Transport Insurance Chapter 2 Quiz

What was a major cause of the Ever Given stranding incident in the Suez Canal?

• An engine failure

• Strong winds and a sandstorm

• Crew negligence

• Cargo theft

What is the primary focus of marine risk insurance?

• Space travel

• Air cargo

• Maritime transportation

• Land-based transportation

What is an example of a physical marine risk?

• Legal dispute

• Sinking or capsizing

• Piracy

• Strikes

Which of the following describes barratry?

• A pirate attack

• A crew member stealing from the ship

• An act by the crew to damage the ship for personal gain

• The ship losing contact with the port

What is jettison in the context of maritime risks?

• The intentional throwing of goods overboard to save the ship

• The accidental loss of cargo during transport

• The sinking of a ship due to faulty navigation

• The collision of two vessels

What is the main goal of marine insurance when dealing with partial average loss?

• To avoid paying any compensation

• To compensate only for the specific damaged goods and not the entire shipment

• To provide full compensation for the entire shipment, regardless of damage

• To delay compensation until all investigations are completed

What happens in a case of constructive total loss?

• The insured item is destroyed beyond recovery

• The insured item is partially damaged but repairable

• The cost to save the item exceeds its value

• The item is entirely recovered with minor damages

What does 'notice of abandonment' imply?

• The ship is abandoned due to legal issues

• The insured property is being abandoned to claim compensation

• The insurer has abandoned their responsibility

• A claim for piracy protection

What type of marine risk is considered 'extra' and requires separate insurance coverage?

• Fire and explosion

• Piracy

• War

• Jettison

What is the purpose of the general average concept in maritime law?

• To protect the interests of the insurer

• To minimize losses for cargo owners only

• To share the cost of sacrifices for common safety among all parties

• To maximize the cargo value