Marine Insurance Law
This domain tests the Indian Marine Insurance Act, 1963 and the principles a surveyor applies when a hull or cargo claim turns on cover, causation or breach of duty. Expect questions on insurable interest, utmost good faith, indemnity, proximate cause, warranties, subrogation and abandonment.
Core rules
- Insurable interest must exist at the time of loss for an indemnity claim; a buyer at risk under CIF terms may be insured even without title.
- Utmost good faith requires disclosure of material facts and no misrepresentation. A fact is material if it would influence a prudent underwriter's decision.
- The contract is one of indemnity: the assured recovers loss, not profit. Subrogation transfers the assured's recovery rights after payment; it does not transfer the policy.
- Proximate cause is the efficient dominant cause, not the last event. Concurrent causes need careful analysis.
- A warranty is a strict condition. Breach discharges the insurer from liability for losses arising after breach unless the policy or law provides otherwise. A time hull policy has no implied warranty of seaworthiness; a voyage policy does at commencement.
Worked example
A vessel sails on a voyage policy with a known defective steering ram. She grounds and suffers bottom damage. The surveyor finds the defect caused loss of steering. Because the implied warranty of seaworthiness was breached at commencement of the voyage, the insurer is discharged from liability for that loss. If the same vessel were insured on a time policy, the implied warranty would not apply; an express seaworthiness or class warranty would need checking.
Traps
Do not confuse proximate cause with the final event. Do not treat 'all risks' as covering every loss. Do not assume subrogation gives the insurer ownership of the vessel. Do not ignore warranty breach because the loss was also caused by crew negligence.