The Sue And Labour Clause (Mitigation Of Loss) 1. The Sue And Labour Clause The ‘sue and labour’ clause in the SG form of policy reads: ‘and in case of any loss or misfortune it shall be lawful to the assured, their factors, servants and assigns, to sue, labour, and travel for, in and about...
November 21, 2024
Category: The terms of the contract; risks; and causation
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The terms of the contract; risks; and causation
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April 28, 2022July 25, 2022Marine Insurance Law, The terms of the contract; risks; and causation
Causation
Causation 1. The proximate cause In order to be indemnified for a loss under a marine insurance policy, it must be established that the loss: was proximately caused by an insured peril was not proximately caused by an excepted or excluded peril. The requirement that the loss has been proximately caused by an insured peril...
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April 27, 2022July 25, 2022Marine Insurance Law, The terms of the contract; risks; and causation
Excepted Risks
Excepted Risks 1. Excepted perils Generally, but not always, an excepted peril is a peril which would be included within an insured peril and would be covered by the policy but for the exception. That is, the excepted peril is often a sub-set of the insured perils. For example, the policy may provide cover for...
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April 27, 2022July 25, 2022Marine Insurance Law, The terms of the contract; risks; and causation
War, Political and Strike Risks
War, Political And Strike Risks 1. War Risks Clauses The SG form scheduled to the MIA covered marine and war risks. However, it became common for war risks to be excluded from cover. This was done by the ‘FC&S’ clause (standing for ‘free of capture and seizure’). One form of the FC&S clause provided: ‘Warranted...
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April 27, 2022July 25, 2022Marine Insurance Law, The terms of the contract; risks; and causation
Marine Risks
Marine Risks 1. The ingredients of a valid insurance claim The essence of a marine insurance contract is that it is a contract of indemnity, that is, the insurer undertakes to be responsible for any losses sustained by the assured provided that the cause of the loss is within the scope of the indemnity (Castellain...
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April 27, 2022July 25, 2022Marine Insurance Law, The terms of the contract; risks; and causation
Implied Warranties
Implied Warranties 1. Implied Warranties Section 33(2) MIA recognises that warranties may be implied. Warranties may be implied into the marine insurance contract either by reason of the parties’ agreement or by law (via MIA). A warranty may be implied by reason of the parties’ agreement if the implied warranty is necessary (not merely desirable)...
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April 27, 2022July 25, 2022Marine Insurance Law, The terms of the contract; risks; and causation
Conditions Precedent and Other Terms of The Insurance Contract
Conditions Precedent And Other Terms Of The Insurance Contract 1. Conditions Precedent Conditions precedent are frequently used in insurance policies. A condition precedent is classically a clause which imposes an obligation on the assured as a condition precedent to the insurer’s liability. If the condition precedent is not complied with, the insurer will by the...
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April 27, 2022July 25, 2022Marine Insurance Law, The terms of the contract; risks; and causation
Express warranties
Express warranties 1. Definition Of Warranties Two different types of warranties should be distinguished: a) Promissory warranties, the breach of which will discharge the insurer from liability. b) Descriptive or suspensive warranties, the breach of which will merely suspend the insurance cover while the assured remains in breach. i) Promissory Warranties Section 33(1) MIA defines...
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April 27, 2022July 25, 2022Marine Insurance Law, The terms of the contract; risks; and causation
Attachment, Duration and Termination of The Insured Risk
Attachment, Duration And Termination Of The Insured Risk 1. Policy Period, Time Policy And Voyage Policy The same considerations within section 25 MIA. These considerations can be found in Parts 7 and 8 of this Mini Series. 2. Cargo Policies And The Institute Clauses Cargo is invariably insured under voyage policies given that the very...
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April 27, 2022July 25, 2022Marine Insurance Law, The terms of the contract; risks; and causation
Premium
Premium 1. Introduction The premium is the monetary consideration paid by the assured in return for the insurer’s promise of indemnity in respect of losses covered by the policy. In the ordinary course of marine insurance business, the premium is paid by the assured to the broker; the broker pays the premium to the insurer...