PHYSICAL RISKS AND OTHER RISKS: MARINE CARGO INSURANCE
ANSWER ANY FIVE OF THE FOLLOWING
1. Explain the significance of marine insurance policies being valued policies.
2. Explain in terms of insurance law principles and policy wording the different ways in which piracy can result in a claim under a cargo policy incorporating the Institute Cargo Clauses (A) (1/1/09).
3. Clause 1 of the Institute Cargo Clauses (A) (1/1/09) reads, in part, as follows: ‘This insurance covers all risks of loss of or damage to the subject-matter insured'. Discuss the limitations on the scope of ‘all risks' cover contained in the quoted words.
4. What is the significance of the case of Soya v White to our understanding of cargo insurance and inherent vice?
5. Compare and contrast the duration of risk under the Institute Cargo Clauses (A) (1/1/09), the Institute Cargo Clauses (A) (1/1/82), and the Institute War Clauses (Cargo) (1/1/09).
6. Cargo is insured under a valued policy with an agreed value of US$500,000. The carrying vessel sinks with the cargo on board. To recover the cargo, recondition it, and forward it to the contractual destination will cost US$350,000. Once there, it would have a market value of US$300,000. What is the assured's position in terms of making a claim under the policy and in terms of the measure of indemnity the assured may recover?
7. Faced with a claim under a cargo policy, the claims handling department of the insurer discovers that the placement of the risk by the assured's broker omitted certain information relating to the assured's claims history. For the insurer to have a remedy for breach of the duty of fair presentation of the risk, what will the insurer have to prove, and what will the remedy be? Assuming that the insurer does have a remedy and exercises it, what should the assured then consider?