Cross Culture

Risk Covered

Fire & explosion

Fire define as burnt,smoke& water damage and explosion define as an event that is violent,noisy and it is caused by rafid chemical or nuclear reaction

If the fire started by the master or the crew of the vessel to avoid being capture to the enemy

Gordon V remmengton,supra “Plantiff win due to the captain burn his own vessel due to the cargo falling into the hand of the enemy

Vessel being stranded or grounded or sunk

loss of a damage to the subject-matter insured reasonably attributable to vessel or craft being stranded, sunk, grounded or capsized

A ship must be ground for an appreciable period of time (at least 15 minutes) before she can be considered as stranded” .

If the ship on touch the ground and runs, this is not consider as stranding.

: M’Douglas V Royal Exchange Assurance Co.

The vessel brought  ½ quarters of oats valued at $540,Whilst leaving the New Grimsby the vessel struck the rock and fell on her beam ends,stuck on the rock for about a minute and half before freeing herself.

Discharge of cargo at port of distress

Port of distress is the nearest port that carrier/vessel can discharge their cargo due to the problems encountered during the transit

Washing overboard or Jettison

It is described to be having overboard of the cargo on order to lighten the carrying vessel.  It must be deliberate act done in a voluntary manner in order to save the adventure from a total loss.

However the underwriter is not liable for the jettison of deck cargo unless it is customary for the particular type or cargo to be carried on deck or unless it is specifically provided in the insurance policy

Berkley v Pressgrave plaintiff won “All loss which arises in consequence of extraordinary sacrifices made or expenses incurred for the preservation of the ship and cargo come within general average and must be borne proportionably by all who are interested. Natural justice requires this”

Entry of sea, or river water into vessel, container or place of storage (water damage)

Water damage caused by entry of sea, river water into carrying vessel, conveyance, or place of storage (flood damage).  

Water damage to cargo carried on deck of a vessel caused by condensation in hold or damage by rain water whilst good are in the open are Not covered

The assured must proved that the water entered the vessel as a result of “peril of the sea”.

 Perils of the sea refers only to accidental accidents or causalities of the sea and Does Not include the ordinary action of the wind and waves

Thames and Mersey Marine Insurance Co V Hamilton, Fraser & Co

This situation happens when rats bite a hole in a pipe which passed through the cargo of rice, Then, sea water entered and damaged the rice, loss or damage due to lake or river water will be covered

Piracy

The term pirates includes passengers who has intention to attack the ship from the shore in the violent and unlawful manner.

Theft

The theft must be associated the “person outside the ship and not belonging to it

Collision

contact of vessel craft or conveyance with any external object other than water

Will not cover damage or loss of assured goods in:

1. Ship’s cargo in bad weather
2. Container truck on rough terrain.

Church of Tonga v Pacific Trading Ltd “The plaintiffs claim damages in negligence for damage to their vessel which occurred when the defendant’s vessel collided with a neighbouring vessel while the vessels were moored at the wharf. (total claim = $35,00)”

Exclusion

General

Willful misconduct

A course of action undetakendeliberatly (intentionally) by the assured

The extent to which the assured would get profit by the loss of his cargoes or vessel

No man can take advantages of his wrong

The damge or loss deliberatly or willful by the crew, captain or stranger otherthan assured can be coverd

Slattery vs mance

Of course the plaintiff cannot recover if he was the person who firred his own ship

delay

Loss or damage to goods due to insolvency caused by delay even though delay is caused by an insured peril

E.g. a vessel carrying a consignment of fruits deteriorated after delay at aintermediate port due to collision

Loss is not recoverable even though delay was caused by collision (insured peril).

Excuses for delay:

1. If the policy provided

2. save human live

Pink V Fleming

The vessel carries oranges and lemonsThere was insurance of fruits against collisionThe fruits get deteriorated when arriving the port.the fruit got deteriorated due to the delay and NOT because of the collision. Because the fruits condition is still good by the time the collision happened.

Insolvency or financial default of carrier

• Financial default refers to the act of carrier abandoning the cargo at intermediate as a security for his financial liability.  

For example cost of warehousing or forwarding the goods where such goods have been abandoned by carrier as a result of the financial insolvency

London& Provincial Leather Processor V Hudson.

The judge conclude that, this case were
covered under the all risk policy. Wrongful misappropriation by the third party due to insolvency is covered under an all risk policy, Assured thought that the goods were stolen/theft

Accident caused by the Nuclear weapons and device

Its introduction is undoubtedly due to the widespread arsenal of nuclear weapons among the great powers and the fear that those weapons may find their way to the third countries

loss or damage expense directly or indirectly caused by or arising from the use of a weapon or device employing atomic or nuclear fission and or fusion or other like reaction or radioactive force or matter is

Spesific

Unseaworthiness and Unfitness

In the voyage policy there is implied warranty that the commencement of the voyage the ship shall be seaworthy for the particular adventure insured” and

“the vessel must be reasonably fit to carry the goods to the destination contemplated by the policy

The vessel must be registered under one of the recognised  Classification Society (e.g International Association of Classification Society-IACS)

Must be exceed certain age limits (.e.g bulk vessel not exceed 10 years and for other vessel less than 15 years).  If > 15 year is subject to addition premium.

Specific matters relating to seaworthiness

Design and construction, Machinery, equipment and navigational aids,

Sufficiency and competence crew, Sufficiency and quality of fuel

,Stability and stowage of cargoes

Hunt v Australasian United Steam Navigation Company Ltd

The court found that the insulating apparatus was not in working order and this went to the seaworthiness of the vessel, The bill of lading contained no stipulation as to seaworthiness and it did not apply to the implied contract

Classification requirements

-this is to ensure that the vessel is seaworthy in which the insured cargo is carried

-if the cargo is insured for a particular voyage or known as single shipment cargo, the insurer can satisfy themselves as to the ownership, classification and age of the ship

Class requirement

Qualify Vessel

Mechanically self-propelled vessels of steel construction classed with a Classification Society

Age limit

Cargoes and or interest carried by Qualifying vessel which exceed the following age limits will be insured on the policy or open cover conditions subject to an additional premium to be agreed.