Marine Insurance Volume 3: Hull Practice

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This second edition is a complete rewrite of the first edition and encompasses a much wider range of subjects. It examines and analyses Hull insurance risks and leading Hull Clauses issued by the Institute of London Underwriters.


Chapter I

Introduction to Merchant Ships

Introduction—Basic ship construction and operation

—Types of ship—Loadlines, freeboard and draught—

Tonnage, classification and registration—Seaworthiness

and trimming—Supplementary notes on ship construction

and operation.

Chapter II Insurable Interest in Hull Practice

Introduction—Principle of hull insurable interest—

Shipowner’s and manager’s interest in the ship—

Mortgagee’s interest in the ship—Charterer’s interest in the

ship—Freight and similar interests—Ship operator’s interest

in expenditure—Ship operator’s ancillary interests—Ship

operator’s liability interests—Ship operator’s interest

in excess liabilities—Ship repairer’s liability interest—

Underwriter’s insurable interest.

Chapter III Effecting the Hull Insurance Contract

Introduction—Insurance markets—London market

associations and services—The broker’s role in the hull

insurance market—The broker’s order—Understanding

the risk—The London market broker’s placing slip—

Placing detail—Placing the risk—Brokers’ covernotes

—Agreements and amendments after placing—Held

covered agreements—Effecting renewals—London market

joint hull understandings.

Chapter IV Premiums, Premium Settlement and Return


Introduction—Hull and machinery premium rating—

Premium rating for short term H & M policies—Premium

adjustments due to variations in insured value—Renewal

premium rating—Brokerage and discounts—Deferred

account—Premium collection and payment—Additional

premiums—London market terms of trade—London market

premium advices—London market centralised accounting

and settlement—Returnable premiums and the MIA, 1906—

Return premiums and London market understandings—

Returns allowed for policy cancellation—Returns allowed

for lying up.

Chapter V Hull Policies and Marine Policy Construction

Introduction—The policy as a legal contract—Lloyd’s

SG policy and insurance company equivalents—The MAR policy used in hull practice—Structure of a marine

insurance policy—Gambling policies and PPI policies—

Jurisdiction clauses—English law & practice clause—

Valued and unvalued policies—Policy assignment—London

market policy preparation & signing—Duplicate and copy

policies—London market renewal policies used in hull

practice—Attaching standard hull clauses to policies—Slip


Chapter VI Franchises and Deductibles

Introduction—The franchise in H & M policies—Customary

groundings clause—The franchise in freight policies—

Deductibles in Institute hull clauses—Subrogation and

deductibles—The franchise in freight policies—Deductibles

in Institute hull clauses—Subrogation and deductibles—

Machinery damage additional deductible—Annual aggregate

deductibles—Deductibles and franchises in foreign hull


Chapter VII Cover for Loss of or Damage to Ship

Introduction—Cover for damage to ship—Cover for total

loss—Actual total loss—Constructive total loss—Multiple

valuation and constructive total loss—Procedure for

claiming a constructive total loss—The waiver clause and

constructive total loss—Compromised and/or arranged total

loss—Hull & Machinery limited terms cover—Reinsurance

of H & M cover.

Chapter VIII Marine Perils and the SG Form of Policy

Introduction—Principle of proximate cause applied to a hull

policy—Marine perils in the SG form of policy—Negligence

& additional perils (Inchmaree) clause—Liner negligence

clause—Pollution hazard clause (1973)—Marine perils in

the American Hull Form—Deliberate damage (pollution

hazard) clause (AHF).

Chapter IX Marine Perils and the MAR Form of Policy

Introduction—The perils clause in the Institute time clauses,

hulls (1983)—Institute additional perils clauses—Institute

additional perils clauses (ITC 1983)—Institute additional

perils clauses (AHF)—Pollution hazard clause (ITC 1983)—

Marine perils in other Institute (Hull etc.) clauses.

Chapter X Perils Excluded from a Marine Policy

Introduction—Statutory exclusions (MIA, 1906)— F. C. &

S. clause and the SG form of policy—Paramount exclusion

clauses (ITC 1970)—Paramount exclusion clauses (ITC

1983)—Paramount exclusion clauses (AHF 1977)—

Concluding comment on exclusion clauses.

Chapter XI Minimising Loss — Sue & Labour

Introduction—Sue & labour clause in the SG form of

policy—Sue & labour clause in the AHF—Duty of

assured clause (ITC 1983, etc.)—Deductibles in relation

to sue & labour charges—Sue & labour charges and

total loss—Effect of underinsurance on claims for sue

& labour charges—Sue & labour charges and excess


Chapter XII General Average and Salvage

Introduction to general average—Determining a general

average loss—Examples of general average sacrifice

—Examples of general average expenditure—Carrier’s

responsibilities in general average—Marine insurer’s

liabiliy for G. A. sacrifice—Treatment of “new for

old” in G. A. sacrifice—Marine hull insurer’s liability

for G. A. expenditure—Marine insurer’s liability for

(G. A.) freight—General average contributory values

and adjustments—Marine hull insurer’s liability for

G. A. contributions—Further matters concerning general

average—Introduction to maritime salvage—Marine hull

insurer’s liability for salvage charges—Services in the

nature of salvage.

Chapter XIII Marine Insurance Warranties & Navigation

Introduction—Nature of a marine insurance warranty

—Breach of warranty (MIA, 1906)—Warranty of

legality—Warranties regarding unseaworthiness of

ship—Warranties concerning towage and salvage

services—Breach of warranty clauses—Disbursements

warranty—Non-payment of premium warranties and

conditions—Locality (navigation) warranties—Institute

warranties—A. G. W. I. and intercoastal limits—

Classification warranties—Transfer of cargo at sea—

Break-up voyages.

Chapter XIV Duration of Cover in Hull Voyage Policies and

Other Matters Concerning Hull Voyage Policies

Introduction—Structure of policy form in relation to

voyage covered—Lost or not lost clause—Commencement

of cover—Delay in sailing—Sailing on a different

voyage—Change of voyage—Delay in prosecuting the

voyage—Deviation from route of voyage—Excuses for

deviation and delay in prosecuting the voyage—Deviation

held covered by policy—Termination of cover in a voyage

policy—The SG policy and hull voyage clauses on limited

terms—The MAR form of policy and hull voyage clauses

on limited terms—Supplementary matters concerning

voyage policies.

Chapter XV Duration of Cover in Hull Time Policies

Introduction—Agreed attachment and termination of

cover—Renewal of Hull Time Policies—Continuation

clause in Hull Time Policies—Sale of the insured ship

or change of ownership—Assignment of interest—The

Master of the insured ship—Management of insured ship

—Change of flag—Chartering and its effect on a Hull Time

Policy—Requisition of insured ship—Change of insured

ship’s classification—Supplementary matters concerning

termination of cover.

Chapter XVI Shipowner’s Liability Insurance

Introduction to the law of liability—Contractual

liability—Third party liability—Liability under Statutory

Powers—Liability insurance and the MIA, 1906—

Introduction to collision liability—Collision liability :

degree of fault—Development of the running down clause

—Supplementary nature of RDC—Application of three

fourths limit in the RDC (ITC/IVC, 1983)—Scope of

cover in the RDC (ITC/IVC, 1983)—Exclusions expressed

in the RDC (ITC/IVC, 1983)—Treatment of costs in the

RDC (ITC/IVC, 1983)—The RDC in foreign hull policy

conditions—Underinsurance and the RDC (ITC/IVC

1983)—Supplementary matters concerning collision

liability—Development of P & I Clubs—Structure and

operation of P & I Clubs—Scope of cover offered by

P & I Clubs—Institute P & I Clauses—Pollution liability—

Carrier’s liability to cargo—International limitation of

liability—Effect of underinsurance on claims for liability,

etc.—Insurance of excess liabilities.

Chapter XVII Hull & Machinery — Limited Terms Insurance

Introduction—Total Loss Only (TLO) insurance—Institute

H & M TLO conditions—Total loss etc. insurances—

Institute total loss etc. conditions (time)—Institute total loss

etc. conditions (voyage).

Chapter XVIII Hull Interest Insurances

Introduction—Hull “increased value” insurances—The

insurance of disbursements—Disbursements warranty

—Permitted additional insurances—Institute disbursements

and I/V clauses—Average disbursements—American hull

interest policies.

Chapter XIX Insurance of Hull War and Strikes Risks

Introduction—War risks protection clubs—British

government war risks protection—The F. C. & S. clause and

the “Coxwold” amendment—Paramount exclusion clauses,

1970—Frustration of voyage or adventure—Malicious acts

exclusion, 1970—Nuclear exclusion, 1970—Paramount

exclusion clauses, 1983—War exclusion, 1983—Strikes

exclusion, 1983—Malicious acts exclusion, 1983—Nuclear

exclusion, 1983—War, atomic and nuclear exclusion clause,

hull reinsurance—Mutual war risks insurance—Institute

war & strikes conditions, hulls time, 1970—Institute war

& strikes conditions, hulls voyage, 1970—Institute war

& strikes conditions, hulls time, 1983—Institute war &

strikes conditions, hulls time (limited), 1983—Institute war

& strikes conditions, hulls voyage, 1983—Cancellation

of cover and automatic termination—Premium rating for

hull war & strikes cover—War risks trading warranties—

Blocking and trapping insurance—American Institute hull

war & strikes clauses.

Chapter XX Hull & Machinery — Port Risks and Builders’


Introduction to port risks insurance—The SG policy and

port risks conditions—Port war & strikes risks (SG policy)—

The MAR policy and port risks conditions—Comparison

between ITC (CL. 280) and IPRC (CL. 311)—Comparison

between IPRC (CL. 311) and IPRC (CL. 312)—Port war &

strikes risks (MAR policy) —Introduction to builders’ risks

insurance—The SG policy and builders’ risks conditions—

Builders’ risks war & strikes (SG policy)—Institute

builders’ risks clauses (CL. 351)—Institute faulty design

and P & I clause (CL. 352)—Institute builders’ risks war

clauses (CL. 349)—Institute builders’ risks strikes clauses

(CL. 350)

Chapter XXI Freight at Risk Insurance

Introduction to freight at risk insurance—The SG policy and

freight at risk conditions—The SG policy and freight war &

strikes—The MAR policy and freight at risk conditions—

Institute freight time clauses (CL. 287)—Institute freight

voyage clauses (CL. 288)—Institute freight war & strikes

clauses, time (CL. 296)—Institute freight war & strikes

clauses, voyage (CL. 297)—Freight waiver clause.

Chapter XXII Analysis of American Hull Clauses and Clauses

Related Thereto

Introduction—American hull form (CL. A1B)—Additional

perils clause (CL. 301)—Machinery damage additional

deductible clause (CL. 304)—Additional deductible

adaptation clause (CL. 307)—Increased value & excess

liabilities clauses (CL. A175 & CL. A209)—War & strikes

clauses (CL. A237)—Trade warranties (CL. A210).

Chapter XXIII Analysis of Institute Hull Clauses

Introduction—Mortgagees’ interest clauses (CL. 337)

—Bridging clause, hulls (CL. 302)—Additional perils

clause (CL. 294)—Standard dutch hull form (CL. 308)

—Additional perils clause (CL. 310)—Machinery damage

additional deductible clause (CL. 309)—Additional

deductible adaptation clause (CL. 306)—Institute fishing

vessel clauses (CL. 346)—Additional perils clause

(CL. 347).

Chapter XXIV Yacht Insurance

Introduction—Institute yacht clauses (CL. 328)—

Machinery damage extension clause (CL. 332)—Personal

effects clauses (CL. 331)—Racing risk extension clause

(CL. 330)—Speedboat clauses (CL. 333)—Yacht transit

clause (CL. 122)—Yacht war & strikes clauses (CL. 329)—

American yacht clauses (CL. A231).

Chapter XXV Hull Claims (Part One)

Underlying Principles and Practice

Introduction—Principle of good faith—Compliance with

warranties—Proximate cause and insured perils—Principle

of successive losses—Measure of indemnity and total

loss—Measure of indemnity for damage to ship—Measure

of indemnity for particular charges—Measure of indemnity

for salvage charges—Measure of indemnity for general

average contributions—Subrogation rights of insurer—

Rights in contribution—Ex gratia and “without prejudice”


Chapter XXVI Hull Claims (Part Two)

Personnel and Procedures

Introduction—Role of the Salvage Association—Role

of a Lloyd’s agent—Broker’s role in claim collection—

Roles of the average adjusters, solicitors, etc.—Notice of

accidents—Deciding the port for docking following an

accident—Duty of assured to prove loss—Surveys and

survey fees—Salvage Association structural condition

surveys—Procedure for claiming a constructive total

loss—Claim documentation.

Chapter XXVII Hull Claims (Part Three)

General Matters Concerning Hull Claims

Introduction—Taking tenders for repairs—Compensation for

loss of time awaiting tenders—Penalty for non-compliance

with tender clause—Choosing the repair firm—Costs of

removal for repairs—Costs of wages & maintenance of

master, officers and crew—Costs of proving a claim—

Temporary repairs—Overtime costs—Tank cleaning and

gas freeing—New for old deductions—Deferred repairs,

unrepaired damage and depreciation—Definitions of

stranding and grounding—Customary groundings (suez

canal) clause—The ship’s “bottom”—Costs of sighting

ship’s bottom—Bottom fouling prevention and care—Costs

of scraping and painting ship’s bottom—Treatment of costs

for repairing ship’s bottom.

Chapter XXVIII Hull Claims (Part Four)

Basic Claim Calculations (Repair Costs, etc.) .

Introduction—Application of H & M policy deductibles

—Deductibles in connection with recoveries—Treatment

of interest on recoveries—Machinery damage additional

deductible—Annual aggregate deductibles—Claims for

damage repairs and dry dock costs—Recoveries from

others—Freight at risk claims.

Chapter XXIX Hull Claims (Part Five)

Basic Claim Calculations (Liabilities)

Introduction—General average and salvage contributions

—Sue & labour charges—Collision liabilities—Excess


Appendix A Marine Insurance Act, 1906 1029

Appendix B York-Antwerp Rules, 1974 1065

Appendix C Rules of Practice, 1986 (amended 1992) 1075

Appendix D Carriage of Goods by Sea Act, 1971 1107

Appendix E Hamburg Rules, 1978 1121

Appendix F Carriage of Goods by Sea Act, 1992 1147

Index 1153


Title: Marine Insurance Volume 3: Hull Practice, 2nd Edition
Number of Pages: 1187
Product Code: 4405Q103
ISBN: ISBN 10: 0-948691-45-X (094869145X) 
Published Date: July 1993
Weight: 1.60 kg