Marine Insurance Flashcards
7 cards from real PGI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Marine Insurance flashcards as text
Which legislation governs marine insurance contracts in Singapore?
Answer: Marine Insurance Act (Cap. 387)
The Marine Insurance Act (Cap. 387) is the primary statute governing marine insurance contracts in Singapore, based on the UK Marine Insurance Act 1906.
What does the principle of 'utmost good faith' (uberrimae fidei) require of a proposer in marine insurance?
Answer: To disclose all material facts that would influence an insurer's decision
Utmost good faith requires the proposer to voluntarily disclose all material facts that a prudent insurer would want to know when assessing the risk, even if not asked.
In marine insurance, what is an 'insurable interest'?
Answer: A legal or equitable relationship between the insured and the subject matter at risk
Insurable interest means the insured must have a legal or equitable relationship with the subject matter such that they benefit from its safety or suffer from its loss.
What is a 'voyage policy' in marine insurance?
Answer: A policy covering a specific voyage from one place to another
A voyage policy covers the subject matter for a specific voyage, attaching at the commencement of the voyage and ceasing when the destination is reached.
Under the Institute Cargo Clauses (A), which of the following risks is EXCLUDED?
Answer: Loss due to inherent vice of the cargo
Inherent vice — deterioration or damage arising from the nature of the goods themselves — is excluded under all Institute Cargo Clauses, including the broadest (A) cover.
What is the 'sue and labour' clause in a marine policy?
Answer: A clause obligating the insured to take reasonable steps to minimise loss, with costs recoverable
The sue and labour clause requires the insured to take reasonable steps to avert or minimise a loss, and allows recovery of the reasonable costs incurred in doing so from the insurer.
Which of the following best describes 'general average' in marine insurance?
Answer: A voluntary sacrifice or extraordinary expenditure made to save the common maritime adventure, shared proportionally by all parties
General average is a principle where losses voluntarily incurred to save the ship, cargo, or freight from a common peril are shared proportionally by all parties to the maritime adventure.