Marine Insurance Doomed if you Don’t?


by Marine Matters


Main photo: www.cargolaw.com, insets: internet.


Above: Head on collision between M/V Nada V and M/V Grande Nigeria blocks all shipping at Belgian port of Antwerp in 2003. Opposite: Waiter ringing the ‘Lutine Bell’ once for bad news twice for good news.


The Origins The Wikipedia definition of Ma-


rine Insurance is an insurance that cover the loss of damage of ships, cargo, terminals and any transport or cargo by which property is trans- ferred, acquired or held between the points of origin and final desti- nation. A little bit about the history of


Marine Insurance. It was the earliest well developed kind of insurance. As far back as during the fourteenth century with its origins in Italy, the phenomena of covering risks in exchange for a payment spread to Northern Europe. In particular London, through its growing im- portance as a trade centre, was


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increasing demand for marine insur- ance and during the 15th century the basic development of what we now know as modern marine insur- ance was established. In the late 1680’s a gentleman named Edward Lloyd opened a coffee house on Tower Street in London which soon became a popular haunt for ship owners, merchants and ship’s cap- tains and thereby a reliable source of the latest shipping news. It became the meeting place for parties in the shipping industry to insure their cargoes and their ships and those willing to underwrite these risks. The small coffee house of Edward Lloyd ultimately led to the establishment of the now infamous insurance mar-


ket Lloyd’s of London, a multi billion insurance and re-insurance market. There are several types of insur-


ance related to marine. For example, typically a ship owner will insure his vessel under a Hull & Machinery Policy. This covers any damage to the vessel and any damage or losses caused by the vessel or its crew. Then there is Protection & Indemnity insurance also known as P&I insurance. This insurance typi- cally covers the liability aspects of the ship owner over and above what the Marine Policy does not cover. In case for example of an oil spill due to a collision, the risks of cleaning up are partially covered through a P&I insurance.


April 2014


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