ESSENTIALS OF OCEAN MARINE INSURANCE CONTRACT
"A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the insured, in manner and to the extent thereby agreed, against the losses incidental to marine adventure". The essentials of ocean marine insurance contract are (1) Insurable interest (2) Disclosure of facts (3) Seaworthiness of the ship (4) Legality of voyage (5) Non deviation.
Insurable Interest. The insured must have insurable interest in theproperty insured. In the event of loss, if the facts are found otherwise, the contractwill be void at law.
Disclosure of all facts. An essential feature of the marine insurancecontract is that every contract or insurance must disclose all the facts. If theprinciple of 'Utmost Good Faith' is not observed by either party, the affected partymay sue and declare the contract void,
Seaworthiness of the ship. The-insurer shall promise to the insured thatthe ship is in a good condition and can face the ordinary perils of the sea.
Legality of voyage. The insured must also get a guarantee that thevoyage of the ship is lawful. The illegality of the venture makes the contract ofinsurance void.
Non-Deviation. The policy holder should also get a guarantee from theinsurance company that the ship will not part or deviate from the prescribed route
"A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the insured, in manner and to the extent thereby agreed, against the losses incidental to marine adventure". The essentials of ocean marine insurance contract are (1) Insurable interest (2) Disclosure of facts (3) Seaworthiness of the ship (4) Legality of voyage (5) Non deviation.
Insurable Interest. The insured must have insurable interest in theproperty insured. In the event of loss, if the facts are found otherwise, the contractwill be void at law.
Disclosure of all facts. An essential feature of the marine insurancecontract is that every contract or insurance must disclose all the facts. If theprinciple of 'Utmost Good Faith' is not observed by either party, the affected partymay sue and declare the contract void,
Seaworthiness of the ship. The-insurer shall promise to the insured thatthe ship is in a good condition and can face the ordinary perils of the sea.
Legality of voyage. The insured must also get a guarantee that thevoyage of the ship is lawful. The illegality of the venture makes the contract ofinsurance void.
Non-Deviation. The policy holder should also get a guarantee from theinsurance company that the ship will not part or deviate from the prescribed route
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