10 MARINE PERILS IN MARINE INSURANCE

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Marine perils are perils related to or arising from the navigation of the sea, including risk associated with the sea itself, loss by fire and war perils, loss arising from pirates, thieves, captures, seizure, restrain, and loss arising from the detainment of princes and people and any other risks that may be mentioned in the policy.

A marine peril is any peril that is incidental to or arises from maritime navigation.

For our purpose, we shall discuss ten major marine perils: perils of the sea, loss by fire, loss by enemies, jettisoning, barratry, man-of-war, loss by pirates and thieves, loss by restraints, loss by detainment, and other perils that may be agreed by the insured and the insurer.

1. Peril of the sea: This category includes peril peculiar to the sea. It is any peril or danger that the ship faced in the course of a voyage which is not necessarily the result of human intervention.

Perils of the sea refer to only fortuitous loss. It does not include loss arising from the fraud or misconduct of the insured.

For example, if a loss arising from the insured sea peril was caused by the dishonesty or willful misconduct of the insurance, the insurer is not liable to compensate the insured under the terms of the policy.

2. Loss by fire: This is a special kind of marine peril. 

Broadly speaking, marine insurance does not cover all kinds of fires. Marine insurance covers only two fire-related perils.

First, It covers damages caused by the fire's heat or smoke arising from spontaneous combustion, lightning, explosions, or other causes such as the negligence of the master or crew etc.

Second, marine insurance covers damages of goods resulting from water used to extinguish fires due to lightning, explosions, negligence on the part of the captain or crew, spontaneous combustion, etc.

Standard marine insurance policies do not cover loss resulting from the insured's willful wrongdoing.

A marine insurance policy will not also cover a fire that happened due to the vice or nature of the insured subject matter.

It is crucial to note that some fire-related losses that aren't covered by standard marine insurance policy can be covered by having special clauses included in the policy, however doing so will cost you more money.

3. Loss by enemies: Wiktionary defines an enemy as "someone hostile to, feels hatred towards, opposes the interests of or intends injury to someone else".

It includes suffering as a result of the hostile acts of an enemy.

Enemies also include all types of ships belonging to the foe or enemy countries as well as their hostile acts, provided that these acts formed part of the enemy hostile campaign.

Losses by seizure, capture or taking at sea by an enemy are also considered losses by enemies.

4. Jettisoning: Jettisoning is the voluntary and intentional discarding of a portion of the cargo or the vessel's equipment to lighten or relieve the ship in the event of a need or emergency to have a safe journey or adventure.

The main purpose of jettison is to relieve an overloaded ship so that it would not sink or capsize.

It's crucial to understand that maritime insurance only covers things that are thrown overboard on purpose from the ship.

If the goods or cargo is accidentally or carelessly thrown away, then the loss is not covered by the marine policy.

It is also crucial to remember that a marine insurance policy does not provide coverage for items that are thrown away due to its inherent vice.

5. Barratry: This term refers to any illegal or dishonest behaviour by a ship's crew that endangers the ship's owner

Cases of barratry include stealing the ship, purposefully deviating from the designated shipping route, sinking the ship, scuttling cargo or fraudulently selling the ship.

For an insurance company to be liable for loss arising from barratry, the fraudulent act by the crew members must be done without the knowledge or connivance of the owner of the vessel.

If it can be proven that the owner of the vessel participated in the act of barratry, the insurance company is not required by law to compensate the insured.

6. Man-of-war: Any losses resulting from collisions with man-of-war are covered by the policy. Man-of-war refers to vessels that nations have authorized and maintained for attack or defence.

7. Loss by pirates and thieves: As its name seems to suggest, this peril includes the loss or damage of goods caused by the activities of pirates and thieves. 

Pirates and thieves were highly prevalent in earlier times when water transportation was underdeveloped.

But today, as a result of technological development, the activities of pirates and thieves have been greatly reduced.

By the way, a pirate is a person who steals or plunders goods from a ship.

Pirates are essentially sea robbers. They forcedly rob good at sea. The act of piracy is either committed by marauders from outside the ship or by passengers inside the ship.

8. Loss by restraint: Government sometimes prevent the free use of a port. This is called restraint.

Restraint is a peril since it can sacrifice cargo, interrupt voyages, and even trip cancellation for journeys involving the restricted port.

9. Loss by detainment: This covers financial losses resulting from detention of a ship, or its cargo due to a potential quarantine order, blockage, or other interference by a nation's police power while a ship is in the port.

Marine insurance policies typically exclude losses arising from just travel delays, interruptions, market losses, or other unusual circumstances.

RELATED POST: 5 PRINCIPLES OF MARINE INSURANCE

10. Other perils: A marine insurance policy may also cover any other peril as agreed upon by the insurer and the insured, in addition to the perils mentioned above.

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