Marine, Aviation and Transport Insurance
Marine and transport
Understand hull and machinery, cargo, freight and liability covers. Know the Institute Cargo Clauses (A), (B) and (C) and the difference in breadth of cover. Understand the concepts of general average, particular average, salvage and sue and labour.
Aviation
Know hull, liability and passenger cover, and the role of international conventions. Understand the treatment of war and terrorism risks and the role of specialist markets.
Traps
Questions often test whether general average applies to all parties or only to cargo. Another trap is confusing particular average (partial loss) with general average (shared sacrifice). Understand that cargo cover under (C) is narrower than under (A).
Worked example
A ship jettisons cargo to save the vessel. The loss is shared by all parties in general average. Rule of thumb: general average is a shared sacrifice; particular average is a partial loss borne by the affected party.