23 The Law of Marine Insurance

Subject(s):

Modes of liability — Inconvertibility of payments — Seafarers — Nationality of ships

This chapter examines the basics of marine insurance law. It emphasizes the principles of indemnity, insurable interest, and utmost good faith. Marine insurance refers to the insurance of vessels, cargo, shipowner’s, shiprepairer’s, and other marine liabilities, and various other moveable property and associated interests exposed to the risks incidental to the marine transport. It protects the insured against damage, loss, and liability arising from the exposure of a vessel, goods, or any moveable property to the maritime perils, meaning the perils consequent on, or incidental to, the navigation. The three common types of marine insurance are hull insurance, cargo insurance, and marine liability insurance. Unfortunately, there is no standing international legal framework regulating the law of marine insurance. In Commonwealth countries, a source of marine insurance law is common law, reflected in and developed through case law and through the Marine Insurance Act 1906.