MARINE PERILS AND P & I

MARINE PERILS AND P & I

Ship Owner Need To Wreck Removed

Protection and Indemnity (P & I)

Actual Total Loss

Introduction

Marine Perils

Issue:

ISSUE:

Whether MV Scorpion 9 are able to claim actual total loss in marine losses.

Whether MV Scorpion 9 can claim for insurance based on perils of the sea.

Law:

LAW:

Marine Insurance: A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the assured, in manner and to the extent thereby agreed, against marine losses, that is to say, the losses incident to marine adventure.

Marine Perils: Perils consequent on or incidental to, the navigation of the sea, that is to say, perils of the seas, fire, war perils (enemies), pirates, rovers, thieves, captures, seizures, restraints and detainment of princess and peoples, jettison, barratry and other perils, either of the like kind or which may be designed by the policy.

• Based on the situation on question 1, the ship owner can claim all the loss happen on board the ship by using Protection and Indemnity club.
• As of current statistics, as much as 90% of the world maritime tonnage is covered by the mutual P & I Clubs.
• Major clubs vary in size and contributions which are as listed:

Rule 7, MIA 1906, explaining term of “perils of the sea” which refers to fortuitous accidents cause by the sea.

Need to element to be fulfill:

1. Must be accidental, fortuitous and unexpected (e.g. high tide).

2. Must of “of the sea” (e.g. grounding).

S. 57 (1) MIA 1906:

“Where the subject matter insured is destroyed, or so damaged as to cease to be a thing of the kind insured, or where the assured is irretrievably deprived thereof, there is an actual total loss.”

Ship Owner Need To Clean-up The Pollution Coming From The Bunker And Fuel Carried By The Vessel

CASE:

Case:

Canada Rice mills Ctd v. Union Marine $ General Insurance Co. Ctd

• Peril of the sea was unexpected storm.

Asfar & co v Blundell

The vessel carrying dates sank. When it was subsequently raised and docked, the dates were so impregnated with sewage and found to be unfit for human consumption.

Held: There was a total loss of the dates. The dates were biologically remained but commercially lost. Freight was not payable on delivery.

Protection and Indemnity Insurance, or “P&I”: It is usually called, is a shipowner’s insurance cover for legal liabilities to third parties. “Third parties” are any person, apart from the shipowner himself, who may have a legal or contractual claim against the ship.

APPLICATION:

Application:

Risks Covered Are Liabilities, Costs & Expenses For

Five Crew And A Master Were Rescued By A Helicopter And Three Crew Lost At Sea

• MV Scorpion 9, able to clam the insurance since it cause by the heavy wind which was different from the normal weather at the particular period.
• The fact was confirm by Meteorology Department.
• The vessel was badly rolling and pitching until it ripped to half.

MV Scorpion 9 are able to claim for total loss.

• When the subject matter is totally destroyed.

- the vessel was ripped into half.

• When the subject matter cease to be a thing of the kind insured.

- the soybeans and fuel found to be unfit for human consumption.

• When the assured is irretrievably deprived of the subject matter.

- the vessel has become wreck.

• Injury, illness and death of crew, passengers or other persons.
• Cargo loss or damage.
• Wreck removal.
• Pollution.
• Collision.
• Dock damage.

CONCLUSION:

Conclusion:

The Issue That Allows Ship Owner In Question 1 To Claim Under P&I Club Are

MV Scorpion 9 are able to claim for actual total loss in marine losses.

MV Scorpion 9 is able to claim the insurance based on perils of the sea.

Conclusion

Second issue is whether MV Section 9 able to claim for actual total loss in marine losses. In law, this issue including Section S7 (1) MIA 1906. This is because where the subject matter insured is destroyed, or so damage as to cease to be a thing of the kind insured or where the actual total loss.

Beside that, ship owner can claim all the loss happen on board the ship by using Protection and Indemnity club. P&I club stated they will cover is third party legal liability insurance for ship owners, operators and charterers.

• Ship owner need to wreck removed.
• Ship owner need to clean-up the pollution coming from the bunker and fuel carried by the vessel.
• Five crew and a master were rescued by a helicopter and three crew lost at sea.

Marine insurance is important as it protects our vessel from damage upon exposure to a broad range of risks, such as accident, failure in the dock or port area and any damage incurred at sea.

In marine perils, the first issue is whether MV Section 9 can claim for insurance based on perils of the sea. In law, this issue including the Rule 7 MIA 1906, the term “perils of the seas” refers only to fortuitous accidents or casualties of the seas. It does not include the ordinary action of the winds and waves.