Table Of Content

Marine Insurance Law This book expertly introduces and clearly explains all topics covered in marine insurance law courses at undergraduate and postgraduate levels, offering students and those new to the area a comprehensive and accessible overview of this important topic in commercial law. Beginning by introducing the general principles of the subject, the structure and formation of insurance contracts, Marine Insurance Law then looks to individual considerations in detail, including: brokers, losses, risks and perils, sue and labour, reinsurance, and mutual insurance/P&I clubs. This title has been developed with the needs of courses specifically in mind, and its content has been tailored to include the most important and commonly taught topics in the field. Each chapter contains end of chapter further reading to support student research, ensuring this new textbook provides a reliable and accessible gateway into this important topic in maritime law. Dr Özlem Gürses is Associate Professor in Maritime Law at Southampton University. This page intentionally left blank Marine Insurance Law Özlem Gürses First published 2015 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2015 Özlem Gürses The right of Özlem Gürses to be identified as author of this work has been asserted by her in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Gürses, Özlem, author. Marine insurance law/Özlem Gürses. pages cm ‘a GlassHouse Book.’ Includes index. ISBN 978-0-415-72702-0 (hbk) – ISBN 978-0-415-72701-3 (pbk) – ISBN 978-1-315-85595-0 (ebk) 1. Marine insurance – Law and legislation – England. I. Title. KD1845.G87 2015 346.42’0862 – dc23 2014035036 ISBN: 978-0-415-72702-0 (hbk) ISBN: 978-0-415-72701-3 (pbk) ISBN: 978-1-315-85595-0 (ebk) Typeset in Joanna by Florence Production Ltd, Stoodleigh, Devon, UK Outline Contents Table of Cases xiii Table of Statutes and Other Instruments xxvii Preface xxxi 1 Introduction to Marine Insurance 1 2 Formation of Insurance Contracts 19 3 Insurable Interest 31 4 Duty of Utmost Good Faith 50 5 Warranties 99 6 The Premium 124 7 Causation and Marine Perils 148 8 Actual Total Loss 184 9 Constructive Total Loss 199 10 Partial Loss (Particular Average) 214 11 Sue and Labour Expenses 224 12 Fraudulent Claims 244 13 Subrogation 257 14 Brokers 288 15 Reinsurance 309 Index 331 This page intentionally left blank Detailed Contents Table of Cases xiii Table of Statutes and Other Instruments xxvii Preface xxxi 1 Introduction to Marine Insurance 1 Lloyd’s of London 3 Protection and Indemnity Clubs 3 The law of marine insurance 4 The Marine Insurance Act 1906 5 SG policy 6 Contract of marine insurance 6 Valued policy 8 Unvalued policy 9 Voyage and time policies 9 Floating policies and open covers 10 Assignment 13 Assignment under the Marine Insurance Act 1906 13 The Law of Property Act 1925 16 Assignment in equity 17 Further reading 18 2 Formation of Insurance Contracts 19 London Company Market 20 The Lloyd’s market 20 Formation of insurance contracts 21 When is a binding insurance contract concluded? 22 Signing down 23 Agreements reached via emails 24 Requirement of formal policy 25 Can the MRC be a contract of insurance? 26 The leading underwriter clause 26 Further reading 30 3 Insurable Interest 31 Introduction 32 Wagering contracts 32 Legislation 33 Definition of Insurable Interest 35 Types of interest 37 viii DETAILED CONTENTS Date for insurable interest 48 Further reading 48 4 Duty of Utmost Good Faith 50 The nature of the duty of good faith 51 The scope of the duty of good faith 52 Burden of proof 54 Materiality 54 Inducement 57 Proof of inducement 58 Presumption of inducement 62 Material facts 65 Physical hazard 65 Moral hazard 67 Disclosure by agent effecting insurance 78 Facts which need not be disclosed 78 Waiver of remedy for breach of the duty of good faith 86 Damages for misrepresentation 89 Duration of the duty of good faith 90 Insurers’ duty of good faith 94 Reform of the duty of good faith 96 Further reading 97 5 Warranties 99 Definition 100 Creating a warranty 101 Express warranty 101 Construction of warranties 102 Present and continuing warranties 104 Implied warranties 106 Warranty of seaworthiness 106 There is no warranty that goods are seaworthy 112 Remedy 112 Strict compliance 113 Waiver 114 Express waiver 115 Implied waiver 116 ‘Held covered’ clauses 118 The basis of the contract clauses 121 Difference from conditions 121 Reform proposal and the draft Bill 121 Further reading 122 6 The Premium 124 The custom 125 Effect of receipt on policy 127 Producing brokers – placing brokers 128 The amount of premium 128 Premium’s due date 129 The custom can be excluded 131 DETAILED CONTENTS ix Consequences of non-payment of premium 133 Broker’s cancellation clause 134 Brokers’ lien 135 Return of premium 140 Account adjustment between the broker and the insurer 144 Further reading 147 7 Causation and Marine Perils 148 True meaning of causa proxima (proximate cause) 149 Concurrent causes 150 Burden of proof 152 Insured perils 154 Perils of the sea 155 Ordinary action of the wind and waves 156 Entry of seawater 157 Perils of the sea and unseaworthiness 158 Exceptions 159 Inherent vice 159 Inability of the subject matter insured to withstand the ordinary conditions of the voyage 161 Ordinary wear and tear 163 Negligence and misconduct of the assured or his employees or agents 164 Delay 165 Insured perils under standard hull and cargo clauses 166 The Collision Liability Clause 172 Fire and explosion 175 Piracy 176 Thieves 177 Barratry of master, officers or crew 177 Cargo risks 178 The ICC (A) Cover 179 ICC (B) and (C) – restricted risks 180 Both to blame 181 Further reading 182 8 Actual Total Loss 184 Forms of loss in marine insurance 185 Actual total loss 185 Capture and seizure 191 Actual total loss of freight 196 Time when actual total loss must be constituted 197 Further reading 198 9 Constructive Total Loss 199 Definition 200 Insured value 203 Constructive total loss of goods 205 Loss of voyage 205 Date at which CTL to be assessed 206 Notice of abandonment 206

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This book expertly introduces and clearly explains all topics covered in marine insurance law courses at undergraduate and postgraduate levels, offering students and those new to the area a comprehensive and accessible overview of this important topic in commercial law. Beginning by introducing the