Marine Insurance

Insurance cover of ship owners and managers

A ship-owner or ship manager (acting on behalf of the owner) may require marine insurance cover against:

  • actual or constructive total loss of his ship’s hull, machinery and equipment (H&M cover);
  • accidental (particular average) damage to his ship’s hull, machinery and equipment (H&M cover);
  • liability to owners of other vessels (or their cargoes) with which his ship collides (collision liability);
  • liability for general average charges;
  • liability for salvage charges;
  • liability for damage done by his ship to a third party’s property;
  • liability for other third party risks, e.g. cargo claims, personal injuries, pollution, wreck removal costs, etc. (called “P&I risks”);
  • liability for oil pollution claims;
  • loss of earnings due to strikes;
  • loss of earnings due to operation of war risks;
  • loss of freight;
  • loss of charter hire (e.g. when vessel goes “off-hire” after sustaining damage);
  • increased value, disbursements and excess liabilities (an additional source of recovery over and above the hull and machinery insured value in case of total loss); and
  • employer’s liability to workers.

A ship-owner may need to take out other special insurances on an emergency basis in certain circumstances. When his vessel deviates from its contracted voyage in some respect, for example, ship owners’ liability insurance (SOL) may be needed to protect the owner against the extra risks he incurs if he loses his defenses to liability under The Hague or Hague-Visby Rules.

Read More: Business & Command

What do you think?

Written by Admin


Leave a Reply

Your email address will not be published. Required fields are marked *



What is the International Maritime Organization (IMO)?

FUND – 1992