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Sample essay topic, essay writing: Maritime Law - 805 words

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Maritime LawThe value of many shipments depends upon fluctuations in the currency rates,freight, handling charges, and other expenses. By means of insurance protectionwill be provided to goods from any uncontrollable variables. A contract ofMarine Insurance is defined by section 7 of the Marine Insurance Act of 1909 as:'A contract whereby the insurer undertakes to indemnify the assured, in mannerand to the extent thereby agreed, against marine losses, that is to say, thelosses incident to marine adventure.' The purpose of marine insurance is toprovide protection against financial loss for an amount, which is as close aspossible to the actual loss recognized. Marine insurance is a contract by whichone party for a specified consideration promises to pay another party a sum ofmoney on the loss of goods that are subject to marine transport. Thereforemarine insurance is a contract of indemnity, which is a contract ofreimbursement, and the amount redeemable is measured by the extent of theassured's or the insured's financial loss. The terms and conditions of thecontract entered into with the insurer determine the amount of reimbursementthat is to be received by the insured.

A contract of marine insurance is embodied in a policy, which specifies:'1- The name of the insured, or of some person who effects the insurance on hisbehalf.2- The subject matter insured and the risk insured against.3- The voyage, or period of time, or both, as the case may be, covered by theinsurance.4- The sum or sums insured.5- The names of the insurers.'The promissor in an insurance contract is called the insurer or underwriter, theperson to whom the promise is made is the insured, assured or the policyholderand finally the contract is referred as the policy.In order to avoid these situations marine cargo insurance has different coveragefor different purposes. on/MarineInsuranceandCargoCla.htmlhttp://ra.irv.ui law/documents/insurance/mia 1906/art/mia 1906.html#01General Average Loss55 Section 72(1) says that a general average loss is any loss or damagevoluntarily incurred for the general safety of the ship and cargo. For example,where goods are thrown overboard in a storm for the purposes of saving a ship,and the rest of the cargo. The Admiral Zmajevic (1983) 2 LLR 86.56 Section 72(3) says that the several persons interested in the ship,freight and cargo must contribute rateably to indemnify the person whose goodshave been sacrificed against all but his proportion of the general loss.1.Does your policy cover perils?2.Does it cover war risks and riots?Due to events like the Los Angeles 3.Does it cover?Nature of Marine Insurance1 Marine Insurance deals with the insurance of marine risks.5 There are a number of terms used in marine insurance, as follows:5.1 The contract of Marine Insurance is generally referred to asthe Policy;5.2 The insurer is the underwriter;5.3 The property insured is called the subject matter of theinsurance;5.4 The assured's interest in that subject matter is called theinsurable interest;5.5 The payment or consideration for which the insurer undertakesto indemnify the insured is called the premium. law/documents/insurance/mia 1906/art/mia 1906.html#01Does your policy cover perils. This is damage caused to your goods due to:heavy weather conditions, salt water damage, collisions, fires, jettisons(voluntary dumping overboard of either cargo or ship's material to protectproperty from a common danger)?2.Does it cover war risks and riots? Due to events like the recent LosAngeles riots and warlike situations occurring worldwide, this point needs muchattention and consideration. Situations arise most often without warning and mayresult in damage to your merchandise.3.Does it cover General Average? This is a loss resulting from a voluntarysacrifice of any part of the vessel or cargo, or an expenditure to safeguard thevessel and the remainder of the cargo. In a declared General Average, thefinancial responsibility you bear is determined by the value of your cargo inrelation to the total values involved in the voyage. This cost can sometimestotal more than the value of your merchandise. rokerag.html#INSURANCE MARINE CARGOINSURANCE AGREEMENT (Sample Agreement)Policy Number:Assured:Phone:FAX:Loss Payee:Commodity:Valuation: Amount of invoice, including all charges therein and including pre-paid and/or advanced and/or guaranteed freight charges, if any, plus 10%.Foreign currency to be converted into dollars at current rate of exchange in NewYork.Voyage:Coverage: Insured against all risks of physical damage from any external cause,irrespective of percentage, including the risks of wars, strikes, riots & civilcommotion, from warehouse to warehouse.Rate:Date of Proposal:[ ] I hereby authorize (Shipper) to insure all of my shipments on and after subject to the above agreement.[ ] I hereby decline insurance coverage and fully understand that (Shipper's)limited liability is $500.00 per shipping package (ocean), $9.07 per pound (air)or $0.50 per pound (domestic).

Name/Title Signature Date of Acceptance/Declination.

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