PGI Marine Insurance

Question 1

Which legislation governs marine insurance contracts in Singapore?

Accepted Answer

Marine Insurance Act (Cap. 387)

Answer

Insurance Act (Cap. 142)

Answer

Maritime and Port Authority Act

Answer

Merchant Shipping Act (Cap. 179)

Question 2

What does the principle of 'utmost good faith' (uberrimae fidei) require of a proposer in marine insurance?

Accepted Answer

To disclose all material facts that would influence an insurer's decision

Answer

To pay premiums on time without delay

Answer

To accept any policy terms offered by the insurer

Answer

To use only approved surveyors for vessel inspection

Question 3

In marine insurance, what is an 'insurable interest'?

Accepted Answer

A legal or equitable relationship between the insured and the subject matter at risk

Answer

The premium amount the insured pays for coverage

Answer

The geographic area covered by the marine policy

Answer

The minimum vessel tonnage eligible for insurance

Question 4

What is a 'voyage policy' in marine insurance?

Accepted Answer

A policy covering a specific voyage from one place to another

Answer

A policy covering a vessel for a fixed calendar period of 12 months

Answer

A policy covering the vessel only while in port

Answer

A policy covering multiple annual voyages under one premium

Question 5

Under the Institute Cargo Clauses (A), which of the following risks is EXCLUDED?

Accepted Answer

Loss due to inherent vice of the cargo

Answer

Theft during transit

Answer

Rough handling causing damage

Answer

Accidental damage from vessel collision

Question 6

What is the 'sue and labour' clause in a marine policy?

Accepted Answer

A clause obligating the insured to take reasonable steps to minimise loss, with costs recoverable

Answer

A clause requiring the insured to hire maritime lawyers for claims

Answer

A clause permitting the insurer to sue third parties on behalf of the insured

Answer

A clause covering legal costs arising from cargo disputes

Question 7

Which of the following best describes 'general average' in marine insurance?

Accepted Answer

A voluntary sacrifice or extraordinary expenditure made to save the common maritime adventure, shared proportionally by all parties

Answer

The average annual claims cost across all marine policies

Answer

The standard deductible applied to all marine cargo claims

Answer

The average premium rate applied to vessels of average age