Marine Insurance (IC-67)
The marine framework
Marine insurance is built on the SG-style perils cover, the Institute Cargo Clauses (A/B/C), hull and machinery wordings, and the doctrine of sue and labour - the assured's duty (and right to reimbursement) to avert or minimise loss. Understand the three cargo clause sets: (A) all risks subject to exclusions; (B) named perils plus earthquake, volcanic eruption, lightning and water damage; (C) major perils only, with no earthquake/volcanic/lightning cover. Know that the burden of proof shifts accordingly: under (A) the insurer must show an exclusion applies; under (B) and (C) the assured must show a listed peril operated.
Hull and voyage concepts
Seaworthiness (including cargo-worthiness of the vessel at inception of the voyage), barratry, jettison, general average and particular average are examinable. General average requires an intentional, extraordinary sacrifice for the common safety; particular average is accidental damage to a particular interest. Note the both-to-blame collision situation and the 3/4 collision liability clause in hull wordings.
Traps
- Treating general average as a claim on cargo alone - it is a contribution from all saved interests.
- Forgetting that deviation can discharge the insurer unless saved by a held-covered clause.
- Confusing constructive total loss (notice of abandonment) with actual total loss.
- Assuming (C) covers theft or non-delivery - it does not.
Rule of thumb
Ask three questions in order: Is the peril insured? Is an exclusion engaged? Did an insured peril proximately cause the loss? Only then compute quantum, remembering sue and labour charges are additional to the sum insured.