Page 14 - Insurance Times March 2017 Sample

8. Marine Insurance Act, 1963 - The insurance business  Indian Stamp Act, 1899
of Marine Cargo & Hull is governed by this Act. The
 The Foreign Exchange Management Act, 1999
Act deals with basic principles, basis of valuation under
the policies, basis of settlement of losses etc.  Sale of Goods Act, 1930

9. Sec 19 of MIC Act states that "A contract of Marine  The Public Liability Insurance Act, 1991
insurance is a contract based upon the Utmost Good  The Railways Act, 1989
Faith, and if the utmost good faith be not observed by  The Carriage of Goods by Sea Act, 1925
the either party, the contract may be avoided by the
 The Merchant Shipping Act, 1958
other party.
 The Bill of Lading Act, 1855
10. Sec 3 of MI Act states that "A contract of Marine
Insurance is an agreement whereby the Insurer  The Indian Ports (Major Ports) Act, 1963
undertakes to indemnify the Assured, if the manner  The Indian Railways Act, 1890
and to the extent thereby agreed against Marine
 The Carriers Act, 1898
Losses, i.e. to say, the losses incidental to Marine
Adventure.  The Carriage by Air Act, 1972

11. Sec 79 of MI Act states that whether the loss is total
or partial, the Insurer are subrogated to all rights and Sailent feature of principle of proximate
remedies of the Insured. cause
12. The terms and conditions of the Marine Cargo Policy 1. The common law principle of Proximate Cause is
shall be as per Institute Cargo Clauses and Inland Transit codified under Sec 55(1) of MI Act , 1963.
Clauses 2. The contract of insurance embodied in the policy
13. Marine policy is an evidence of contract. promises to indemnity the insured against any loss
which bears clear and direct relationship with the
14. As per section 24 of Marine Insurance Act, a contract insured peril.
of marine insurance is inadmissible in evidence unless
it is embodied in a policy. 3. The loss should not be the result of an excepted peril.

15. Survey fees and stamp duty shall be paid by the insured. 4. The onus of proving the loss due to the peril insured
against lies primarily on the insured.
16. All policies/certificate of insurance should be claused
and duly stamped as per Indian Stamp Act, 1899. 5. The insurers to prove that the loss was proximately
caused by an excepted peril.
17. Sec-7 of Marine Insurance Act - It relates to Insurable
6. The insurers cannot afford to indemnity those losses
interest.
which are the effect of any remote cause which is
18. If the recovery rights of the insurance company is not specifically not covered under the policy.
protected the claim will be settled on Non-standard
7. The phenomenon of determination of cause of loss
basis.
gives rise to the Doctrine of proximate Cause which,
19. Marine business was detariffed in 1994. inter-alia provides that immediate and not the remote
cause is to be regarded.
The UK Marine Insurance Act 1906 - The basics of Global
Marine Insurance Underwriting. 8. The insurers can decide about the liability if it is known
that the loss is caused by an insured peril or an
uninsured peril or an excluded peril.
Some of the following IMPORTANT Acts to be read in details
while opting for Marine Insurance for exam: 9. The rule says that once the cause is identified, it is not
 The Carriers Act, 1865 necessary to go further.
 Carriage by Road Act,2007 10. Under marine All Risk Policy, the insured has simply to
prove that the damage has occurred during the
 The Carriage by Air Act, 1972
currency of the policy and burden of proof shifts to the
 The Multimodal Transportation of Goods Act, 1993 insurer if the contends that the proximate cause of loss

 The Inland Vessels (Amendment) Act, 2007 is in fact an excluded or excepted peril.
14 The Insurance Times, March 2017

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