PARA 13.2|MARINE INSURANCE|ONE LINER|CHAPTER 1

27/04/2019

Hello Readers , here we are providing ONE LINER for marine insurance para 13.2 and III exam . These questions will be very helpful for upcoming promotional exam in 2019.

Marine insurance is essential to overseas trade, inland trade and shipping.
“Yogakshema” meaning risk and safety.
The Rhodian merchants innovated ‘Bottmry’ and “Respondentia’ bonds.
Bottmry means Finance and Respondentia means Security.
‘Bottmry’ loans were raised to generate finance to prosecute the voyage by mortgaging the ship
‘Respondentia’ loans were raised on security of the cargo.
Marine insurance also provides safety. So it is opted by traders, operators and owners of vessels.
In CIF contract, the seller undertakes to arrange for insurance up to an agreed place and so, his price includes insurance premium also.
The Customs Act 1962, customs duty is leviable on import of certain items.
The Customs duty is to be charged on the CIF value of the imported item.
If there is not enough proof of insurance premium included in the price, the customs authorities may add some amount ad hoc.
In L/C transactions, insurance policy acts as collateral security.
L/C: Letter of Credit.
The General Insurance Corporation of India (GIC) was incorporated in November, 1972.
Four PSUs companies were designated as its subsidiaries from 1st January, 1973.
The Insurance Regulatory and Development Authority Act was passed in 1999.
By the 2002 amendment to the General Insurance Business Nationalisation Act, 1972, GIC was made the only reinsurance company of India.
Till 31st March 1994, Indian market was governed by All India Marine Cargo Tariff ( AIMCT).
Effective 1st April 1994, the AIMCT was withdrawn except the Tea Tariff, Advance License insurance policies and the Guidelines for Coffee, Rubber and Cardamom estates.
With effect from 1st April 2004 tariffs for the Tea, Coffee, Rubber, Cardamom and Advance license policies withdraw.
The reinsurance programme of the industry is drawn up with the basic objective of retaining within the country as much business as possible, consistent with safety and risk-bearing capacity.
Intermediaries that operate in the marine market are: Brokers, Corporate agents, Individual agents, Surveyors and Loss assessors.
There are no P & I Clubs in India.
The Marine Insurance Act, 1963.
The Stamp Act, 1899.
Exchange Control Regulations relating to insurance in India.
The Marine Insurance Act, 1963 (MIA) codifies the law relating to marine insurance.
Arbitrators do not operate in marine market because neither cargo nor hull policies provide for any arbitration mechanism.
There are two implied warranties under the Marine Insurance Act-seaworthiness and legality of object.
The warranty of seaworthiness under the law is the absolute warranty of seaworthiness i.e. if cargo is sent by an unseaworthy vessel, the insurers are not liable.
The warranty of legality cannot be changed, as changing it, will be against the principles of public policy.
Insurable interest is required to be present only at the time of loss.
Marine insurance market had its origin in a small coffee house of Edward Lloyd on Tower Street, London in 1680s.
The underwriting members, through their underwriting agents, form groups called “Syndicates”.
Lloyd’s Standard Form of Salvage Agreement also called “Lloyd’s Open Form”.
The primary duty of the Lloyd Agent is to keep Lloyd’s informed of shipping movements, casualties and other matters of interest to the maritime community.
IUA: The International Underwriting Association of London.
ILU: The Institute of London Underwriters.
LIRMA: London International and Reinsurance Market Association.
IUMI: The International Union of Marine Insurance.
IMB: International Maritime Bureau.
The IMB is a non-profit organization, established in 1981, to act as a focal point in the fight against all types of maritime crimes and malpractices and also combating maritime frauds.
TAC: Tariff Advisory Committee.
GI Council is a statutory body under the Insurance Act 1938.
GI council is an industry body funded by contributions from member companies.
General Insurance Business Nationalization Act, 1972 (GIBNA).
All insurances at Lloyd’s must be placed only through the medium of Lloyd’s Brokers.
Lloyd’s Agents are found in most major ports and in many cities of the world.