Transportation Risk Management (CH.6)

---------------------- is insurance against the perils of marine commerce.

• Marine insurance.

• Life insurance.

• Motor insurance.

• Aviation insurance

Hull insurance provide protection for:

• Damage to the shipper's cargo

• Physical damage to the ship

• Legal liability from a collision

• Loss of earnings if goods are undelivered

Which type of ocean marine insurance covers the owner's legal liability in case of a collision with another vessel?

• Hull insurance

• Freight insurance

• Collision liability clause

• Cargo insurance

The collision liability clause specifically covers:

• Physical damage to the vessel

• Legal liability if the ship collides with another vessel

• Loss of goods in transit

• Loss of income if goods are not delivered.

Cargo insurance provides protection for:

• The physical damage to the ship

• The loss of earnings if goods are not delivered

• The shipper if the goods are damaged or lost

• Legal liability from a ship collision

What does freight insurance indemnify the ship owner for?

• Legal liability due to collision

• Damage to the ship

• Loss of earnings if goods are not delivered

• Damage to another vessel's cargo

"The owner of the goods to be transported must disclose all the relevant information to the insurance company while insuring their goods" this related to:

• Utmost good faith

• Contract of Indemnity

• Deliberate Act

• Offer & Acceptance

The principle of utmost good faith in marine insurance state that:

• The insurer is responsible for paying claims even if the insured provides false information

• The insured must disclose all relevant and material information to the insurance company

• The insured can withhold information if it benefits them

• The insurance company must guarantee future profits for the insured

What happens if there is a misrepresentation, mis-description, or nondisclosure of material information in a marine insurance policy?

• The policy remains valid with no consequences

• The policy is voidable at the option of the insurer

• The insurer must still cover all losses without questioning

• The premium rate automatically decreases

One of the main Marine Insurance features that state that If goods are damaged or loss occurs during transit because of deliberate act of an owner then that damage or loss will not be covered under the policy.

• Utmost good faith

• Contract of Indemnity

• Deliberate Act

• Offer & Acceptance