Page 35 - Insurance Times July 2016

the carriage of a single bulk cargo such as iron ore,
crude oil, coal or grains. A bulk cargo may be for a one
shipper or a number of shippers and the cargo may be
bought or sold during the voyage.
(iii) Specialist Marine Operations- such as support vessels
for offshore and onshore and other operations,
salvaging, dredging, towage, coastal patrolling,
piloting, fire-fighting and others.
In the last three decades ship architecture and construction
technology have gone through a major transformation,
thanks to automation leading to enhanced GRT and DWT.
Natural gas has largely replaced coal and diesel as fuel in
ships thereby reducing pollution of the environment.
Containerization, multi-modular transportation, automation
in engine room operations and a high degree of
computerization and digitalization of functions which were
hitherto done manually, use of the state-of-the-art
instruments and mechanisms for ship to shore wireless
communication, totally automated cranes with booms
which can turn around 360 degrees for loading and
unloading operations and others have been installed which
have made navigation of voyages of massive ships through
very deep waters effortless and smooth, apart from
reducing the number of crew members on board the ships.
Vessels like bulk cargo carriers, super tankers and crude
carriers such as VLCCs and ULCCs with DWT over one million
tons have as few as 15 to 25 members. All these features
combined with a high degree of volatility and mobility in
commercial shipping operations makes underwriting of
marine insurance a highly skilled job. It is imperative for the traditional non-insurance sense is understood as a term of
underwriter whether he writes cargo or hull to be fully
conversant with the hazards of navigation through the
major oceans, seas and other water bodies and fully skilled
and understands the geography and climatology and
constituents of the risks posed by high seas and oceans. In
particular he/she has to be well conversant with the
following factors:
(1) Commercial: Routes, ships, nature of cargo carried;
port conditions and facilities for loading and unloading
cargo; facilities for billeting the crew;facilities for
carrying out minor repairs to ships; import-export
practices and documentation; functions of excise and
customs duty personnel and others.
(2) Technical: Ship's architecture and design; equipment
like wireless and fire-fighting instruments provided;
quality of construction of ships especially the engine
room and lay out of the holds where cargo is stacked;
billets for the crew members; flag the ship flies;
tonnage both GRT and DWT of the ship and her
classification; law of the sea; nature of cargo the ship
is designed to carry; packing of cargo and how it is
stowed in the holds; damage from other cargo due to
contact or contamination; galley and how it is fitted
for making meals for the crew members; emergency
medicines etc.
(3) Human: A ship is a miniature world where people of
many nations, speaking different tongues and from
varied cultures and traditions come together, live
together and work together. Hence camaraderie
among the members of the crew is very essential.
Selection of crew members, how they are trained and
supervised; ability to work together (particularly with
crew of different nationalities speaking different
tongues); social factors of shipboard life; the "culture"
of marine life, habits and approach of seafarers.
Warranties in Marine Insurance
Warranty in Contract Law: The term 'warranty' in its most
the contract, the breach of which entitles the aggrieved
party to damages, but not a right to treat the contract as
void. Accordingly, the aggrieved party is still under an
obligation to perform the contract despite the fact the
contract is breached by the other party. The term
'warranty' is also used to refer to certain guarantees given
by a retailer under a sale contract. For example, in a
contract for sale of a car, the seller might agree to replace
parts found to be defective within a period of one year. This
kind of guarantee called a warranty is binding on the part
of the seller since it forms part of the sale contract.
Warranty in Insurance Law: Unlike general contract law,
the use of the term 'warranty' is rather qualified in
Insurance Law. The term is, occasionally, used in some
The Insurance Times, July 2016 35