Marine Claims, Underwriting, and Management
Marine claims handling emphasizes prompt notice, survey, mitigation (sue and labor), and subrogation. The claims adjuster must establish coverage, proximate cause, measure of indemnity, and salvage. General average requires an average adjuster to apportion contributions; salvage awards follow the 1989 Salvage Convention ("no cure, no pay" with an environmental uplift).
Underwriting marine risk involves assessing vessel class, age, flag, trading limits, cargo type, packing, route, and loss history. Rating may use fleet rating, experience rating, or schedule rating. Reinsurance (facultative and treaty, quota share, surplus, excess of loss) is central to marine portfolios because of catastrophe aggregation (a single casualty can hit hull, cargo, and P&I simultaneously).
Traps: (1) Treating salvage as a separate claim rather than a recoverable expense under sue-and-labor; (2) confusing average adjuster (general average) with loss adjuster (particular claims); (3) missing aggregation issues - one event may trigger multiple policies; (4) overlooking warranties (trading limits, class maintained) whose breach may void cover.
Rule of thumb: in a marine casualty, identify the proximate cause, the interests affected, the general average/salvage status, and the subrogation potential before settling.
Worked example: A vessel suffers an engine fire, salvors save the ship, and cargo is damaged. The hull policy pays the ship's damage; the cargo policy pays the cargo damage; the salvage award and general average are apportioned by the average adjuster across all saved interests; the insurer then pursues subrogation against the negligent repair yard.