IRDAI Surveyor Marine Hull (S-04) cheat sheet

Marine Insurance Act 1963 (India) governs marine hull and cargo; it codifies insurable interest, disclosure, warranties, and indemnity principles inherited from the 1906 English Act.

Utmost good faith (uberrimae fidei): the assured and insurer must disclose all material circumstances; non-disclosure or misrepresentation renders the policy voidable, not automatically void.

Insurable interest must exist at the time of loss for hull and machinery; for cargo, the buyer may lack interest at attachment but must hold it when loss occurs.

Warranties are conditions precedent to liability: a breach discharges the insurer from the date of breach, even if the breach is unrelated to the loss, unless the policy provides otherwise.

Proximate cause is the dominant, efficient cause of loss; remote causes are disregarded, so a loss caused by an excluded peril is not recoverable even if an insured peril followed.

Indemnity principle: the assured cannot recover more than the actual loss; valued policies fix the agreed value and are conclusive absent fraud or over-insurance.

Subrogation transfers the assured's rights of recovery against third parties to the insurer after payment; the assured must not prejudice those rights.

Sue and labour clause obliges the assured to mitigate loss; reasonable costs incurred are recoverable in addition to the sum insured.

IRDAI regulates marine insurance under the Insurance Act 1938, IRDA Act 1999, and IRDAI (Insurance Products) Regulations; surveyors are licensed under IRDAI Surveyor regulations.

Licensed surveyors must hold a valid IRDAI surveyor licence, carry professional indemnity cover, and cannot survey claims where they have a conflict of interest.

Marine hull policies are typically written on the Institute Time Clauses (Hulls) or Indian equivalents; product filing and rate adequacy fall under IRDAI oversight.

Claims above the insurer's specified threshold require independent survey; the surveyor's report must be impartial and submitted within the time prescribed by the insurer.

Grievance redressal: policyholders may approach the insurer's Grievance Redressal Officer, then IRDAI's Bima Bharosa portal, then the Insurance Ombudsman.

Anti-money laundering and KYC norms apply to marine insurance transactions; suspicious transactions must be reported to FIU-IND.

Corporate agents and brokers must be IRDAI-registered; direct dealing with unregistered intermediaries is non-compliant.

Surveyors must maintain confidentiality of insured data and retain records as required by the regulator and the insurer.

Hull and Machinery policy insures the vessel's hull, machinery, and equipment; sum insured is usually the market or agreed value of the vessel.

Institute Time Clauses (Hulls) cover perils of the seas, fire, explosion, collision, and negligence of master/crew, subject to exclusions and warranties.

Navigational limits and trading warranties restrict the vessel's trading area; breach voids cover unless held covered by prior agreement.

Due diligence proviso: loss caused by want of due diligence of the assured/owners is excluded, but negligence of master, officers, or crew is covered.

Collision liability (3/4ths or 4/4ths RDC) covers the assured's legal liability to the other vessel; the sister-ship clause allows recovery as if the ships were strangers.

Exclusions include wear and tear, ordinary leakage, inherent vice, war and strikes (unless separately endorsed), and nuclear risks.

Warranties of class maintained and seaworthiness are conditions; breach discharges the insurer from the date of breach.

Notice of loss and survey clause: the assured must notify promptly and allow surveyor inspection before repairs, failing which the insurer may reduce or deny liability.

Cargo policies are issued as single-voyage, open cover, or floating policies; Incoterms determine who bears risk (CIF seller, FOB buyer) at the point of transfer.

Institute Cargo Clauses A (all risks), B, and C differ in perils covered; C is the narrowest and excludes theft and non-delivery.

Warehouse-to-warehouse cover attaches when goods leave the consignor's premises and terminates on delivery or expiry of the transit period.

General average contribution, salvage charges, and sue-and-labour costs are recoverable under cargo policies subject to the deductible.

Inherent vice, insufficient packing, delay, and ordinary leakage are standard exclusions; burden of proof lies on the assured for all-risks cover.

Bill of lading, commercial invoice, packing list, and survey report are core claim documents; clean vs. claused B/L affects carrier liability.

Cargo claims are subject to Hague-Visby or Rotterdam Rules limits per package or per kilogram, whichever is higher.

Duty of assured to mitigate loss and preserve subrogation rights; abandonment of cargo requires notice and insurer acceptance.

Hull structure includes keel, frames, stringers, bulkheads, and shell plating; watertight subdivision limits flooding after damage.

Load line (Plimsoll mark) and freeboard determine permissible loading; overloading breaches statutory and policy conditions.

Classification societies (e.g., IRS, Lloyd's Register) set construction and maintenance standards; loss of class is a material warranty breach.

Seaworthiness requires a fit vessel, competent crew, adequate fuel and stores, and valid certificates at the commencement of the voyage.

Stability, metacentric height, and intact/damage stability affect capsizing risk; cargo stowage and lashing influence stability.

Propulsion, steering gear, and electrical systems are critical machinery; failure modes include fatigue, corrosion, and lubrication breakdown.

Fire safety includes CO2 flooding, fire pumps, and detection systems; structural fire protection follows SOLAS requirements.

Surveyors verify hull thickness, tank coatings, hatch covers, and safety equipment during condition and damage surveys.

Particular average is a partial loss borne by the owner; general average is a voluntary sacrifice apportioned among all parties to the adventure.

Total loss: actual total loss when the subject matter is destroyed or irretrievably lost; constructive total loss when repair cost exceeds the insured value.

Depreciation and new-for-old deductions apply to repairs; betterment is excluded unless the policy provides otherwise.

Salvage value of wreck or damaged cargo is deducted from the claim; the assured cannot profit from the loss.

Deductible (excess) is applied per claim or per occurrence as stated; franchise clauses require loss to exceed a threshold before any recovery.

Loss assessment requires cause analysis, valuation of damage, and verification of policy compliance (warranties, notice, documents).

Repair estimates must be reasonable and supported by competitive quotations; surveyors verify scope and cost.

General average adjustment follows York-Antwerp Rules; the average adjuster apportions contributions by arrived values.

Preliminary survey establishes the facts, cause, and extent of damage; a final survey quantifies loss and recommends settlement.

Survey report must record date, place, parties, vessel particulars, damage description, cause, documents examined, and recommendations.

Photographic evidence, repair invoices, class records, and logbook extracts support the survey findings.

Claims handling timeline: notice, appointment of surveyor, survey, report, insurer decision, settlement, subrogation.

Rejection or reduction of claim must cite the policy clause and reason; the assured has a right to representation.

Fraud indicators include late notice, inconsistent logs, unseaworthy vessel, and inflated repair bills; refer to the insurer's fraud unit.

Surveyors must distinguish pre-existing damage from damage caused by the insured peril.

Coordination with average adjusters, class surveyors, and port authorities ensures a comprehensive assessment.

General average act: extraordinary sacrifice or expenditure intentionally and reasonably made for the common safety of ship and cargo.

York-Antwerp Rules govern adjustment; contributions are based on arrived values of ship, cargo, and freight.

Salvage is voluntary assistance to a vessel in danger; remuneration under the 1989 Salvage Convention is based on saved value, not cost.

Collision liability covers the assured's legal liability to the other vessel; cross-liability and sister-ship clauses prevent circular claims.

Both-to-blame collision: cargo owner may recover from the non-carrying vessel, which then claims contribution from the carrier.

Third-party claims include personal injury, pollution, and dock damage; liability cover or P&I responds where hull policy excludes.

Sue and labour costs are recoverable in addition to the sum insured and are distinct from salvage and general average.

Salvage security (e.g., Lloyd's Open Form, guarantee) must be provided before release of the vessel or cargo.

Surveyors must act impartially and independently; conflicts of interest, gifts, or prior relationships must be disclosed and avoided.

Reports must be factual, evidence-based, and free of speculation; opinions must be clearly distinguished from observations.

Confidentiality: insured data, commercial terms, and claim details must not be disclosed without authorisation.

Professional indemnity insurance and a valid IRDAI licence are mandatory; practising without a licence is an offence.

Surveyor must not accept instructions from both insurer and assured in the same claim without informed consent.

Records must be retained per statutory and insurer requirements; reports may be used in litigation and must withstand scrutiny.

Ethical conduct includes refusing to inflate claims or suppress adverse findings, and reporting fraud to the insurer.

Continuing professional development and adherence to the IRDAI code of conduct maintain licence validity.

Risk inspection assesses vessel condition, age, class status, trading area, crew competence, and management quality.

Underwriting information includes vessel particulars, tonnage, year built, flag, class, mortgage, claims history, and trading limits.

Loss prevention recommendations include maintenance schedules, crew training, fire drills, and security measures against piracy.

Age and condition of the vessel influence premium and deductibles; older vessels may attract higher excess or restrictions.

Cargo risk assessment considers nature of goods, packing, stowage, route, season, and carrier reliability.

Surveyors recommend risk improvement measures and verify compliance during follow-up inspections.

Port state control detentions and class conditions are red flags for underwriting.

Loss prevention extends to weather routing, hull fouling control, and anti-corrosion programmes to reduce claims.

General average sacrifice must be extraordinary, intentional, reasonable, and for the common safety; accidental damage is particular average.

Salvage award considers salved value, danger, skill, and success; no cure, no pay applies under LOF unless SCOPIC invoked.

Collision liability limit is typically the insured value; RDC (running down clause) covers 3/4ths or 4/4ths of liability.

Sister-ship clause treats affiliated vessels as strangers for collision claims.

General average contribution is apportioned by arrived values; the assured's contribution may be insured under hull or cargo policy.

Salvage charges are recoverable under sue-and-labour or salvage clauses, subject to the policy terms.

Third-party property damage and pollution claims may fall under P&I rather than hull cover.

Surveyors must preserve evidence and coordinate with average adjusters in GA and salvage cases.

Independence and impartiality are core ethical duties; any conflict must be disclosed to the instructing insurer.

Reports must be clear, structured, dated, signed, and supported by evidence; conclusions must follow from facts.

Confidentiality and data protection apply to all claim information; unauthorised disclosure breaches professional duty.

Licensing, professional indemnity, and continuing education are regulatory requirements for practice.

Surveyors must avoid accepting gifts or hospitality that could influence judgment.

Fraud detection and reporting are professional obligations; surveyors must not collude in inflating claims.

Records retention and auditability support regulatory and legal scrutiny.

Ethical conduct includes respecting the assured's rights and providing fair, unbiased assessments.

Risk inspection covers hull condition, machinery, safety equipment, crew qualifications, and management systems.

Underwriting data includes vessel age, class, flag, trading area, claims history, and mortgage details.

Loss prevention measures include maintenance, training, fire safety, security, and weather routing.

Older vessels and poor claims history attract higher premiums and deductibles.

Cargo risk depends on packing, stowage, route, season, and carrier reliability.

Follow-up inspections verify implementation of risk improvement recommendations.

Port state control detentions and class conditions are underwriting red flags.

Anti-corrosion and hull maintenance programmes reduce claims and improve insurability.