Shipping Lawyer Marine Insurance Law

Question 1

What is 'Protection and Indemnity' (P&I) insurance in shipping?

Accepted Answer

Liability insurance covering third-party claims against shipowners including cargo loss, crew injury, and pollution

Answer

Hull insurance covering physical damage to the vessel

Answer

Cargo insurance covering goods in transit

Answer

Insurance against charter party disputes

Question 2

What is 'hull and machinery' (H&M) insurance?

Accepted Answer

Insurance covering physical damage to the vessel and its machinery

Answer

Liability insurance for vessel operations

Answer

Insurance for cargo carried on the vessel

Answer

Insurance for the vessel's fuel

Question 3

What is the doctrine of 'utmost good faith' (uberrimae fidei) in marine insurance?

Accepted Answer

Both parties must disclose all material facts relevant to the risk, whether or not asked

Answer

The insurer must act in good faith in settling claims only

Answer

The insured must notify the insurer of all voyages

Answer

The insurer must accept all risks presented

Question 4

What is an 'actual total loss' of a vessel under marine insurance?

Accepted Answer

The vessel is destroyed, irretrievably lost, or ceases to be a vessel

Answer

The cost of repair exceeds the insured value

Answer

The vessel is stranded for more than 30 days

Answer

The vessel suffers damage exceeding 50% of its value

Question 5

What is a 'constructive total loss' (CTL) of a vessel?

Accepted Answer

When the cost of recovering and repairing the vessel exceeds its insured value

Answer

When the vessel is declared a total loss by the classification society

Answer

When the vessel is missing for 30 days

Answer

When the vessel is arrested by a foreign government

Question 6

What is a 'sue and labor' clause in a marine insurance policy?

Accepted Answer

A clause requiring the insured to take reasonable steps to minimize loss, with reasonable costs reimbursed by the insurer

Answer

A clause allowing the insurer to sue third parties

Answer

A clause requiring the insured to labor on board the vessel

Answer

A clause covering legal fees in cargo disputes