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
When a marine cargo insurer pays a claim and wishes to recover the loss from a negligent carrier, which legal principle allows it to do so?
Answer: Subrogation
Subrogation allows the insurer, after paying the insured's claim, to step into the insured's legal shoes and pursue recovery from the third party responsible for the loss.
What is a 'notice of abandonment' in marine insurance, and when must it be given?
Answer: A notice the insured gives to the insurer when electing to treat a constructive total loss as an actual total loss, transferring title to the insurer
Notice of abandonment must be given by the insured to the insurer when claiming a constructive total loss; by accepting abandonment, the insurer acquires whatever remains of the subject matter.
In a marine cargo claim, what is the significance of the 'survey report' obtained from a marine surveyor?
Answer: It establishes the cause, nature, and extent of loss or damage to support the claim assessment
A marine surveyor's report documents the cause, extent, and nature of the loss or damage, providing the evidence base for the insurer to assess and settle the cargo claim.
Under Singapore's Insurance Act, who is authorised to carry on marine insurance business in Singapore?
Answer: Only insurers licensed by the Monetary Authority of Singapore (MAS)
Only insurers licensed by MAS under the Insurance Act are authorised to carry on insurance business, including marine insurance, in Singapore.
What is 'average' in the context of marine insurance (as distinct from general average)?
Answer: A partial loss of the subject matter insured
In marine insurance, 'average' (or 'particular average') refers to a partial loss of the subject matter, as opposed to a total loss or a general average sacrifice.
Which of the following is a key document typically required when making a marine cargo claim in Singapore?
Answer: The original Bill of Lading, commercial invoice, packing list, and survey report
A marine cargo claim typically requires the original Bill of Lading, commercial invoice, packing list, and a survey report to establish ownership, value, and the extent of loss.
Why is Singapore considered a major hub for marine insurance in Asia?
Answer: Singapore is one of the world's busiest ports and a regional financial centre with a well-developed legal framework for marine disputes
Singapore's status as one of the world's busiest ports, combined with its English common law legal system, skilled workforce, and MAS regulatory framework, makes it a leading Asian marine insurance hub.