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Marine Transportation Insurance - Coggle Diagram

- - - - The first known insurance contract relating to Marine Insurance dates back to 1347, signed in Genoa. It covered both transport accidents and delays in the arrival of the ship at its destination.
        The first Insurance Institutions appeared in the Maritime, Life and Fire branches with more technical bases, especially based on the Law of Large Numbers and the Law of Probabilities.
        
        This system, although not often, is practiced by large companies, which periodically constitute an economic fund with which to face possible claims. However, this procedure, insofar as it eliminates community and risk dispersion, cannot be considered as insurance in the strictly technical sense.
        
        Insurance is a contract by which one of the parties (the insurer) is obliged, by means of a premium paid by the other party (the insured), to compensate for a damage or fulfill the agreed benefit if the foreseen event occurs, such as an accident or fire, among others. This relation in the damage insurance is easy to appreciate, while in the life insurance it is more difficult because it will be an economic evaluation of the consequences of the death or survival of a person (case of the life insurance in case of surviving at a certain age).
        
        Risk: It is the cause of the contract because in case there is no risk, the contract will be void, since the contract is stipulated for the insurer to compensate the damages that an uncertain event may cause to the insured. It is therefore an essential element of the contract. It is the possibility of loss or damage. The man since he is born lives with the constant threat of illness, accident, death... In the same way his properties can suffer fires, robberies, etc.
- - - - Reticence
        It is any false statement or concealment of data which, in the opinion of experts, if known by the insurer would not have accepted the insurance or would have changed the conditions of acceptance. There are two kinds of reticence: guilty and fraudulent. The first is in good faith, with no intention of obtaining advantages. In this case the contract is voidable and the insurer has 3 months to contest it. If the reticence is fraudulent or in bad faith the contract is void.
        
        Contract documentation or policy: this is the document in which the insurance contract and its modifications or additions are formalized. The insurer has to give the policyholder (the one who signs the contract) the policy or at least a document of provisional coverage. The policy must be written in a language that is convenient for the parties and must contain the following mentions: identification of the parties and domicile; designation of the insured and beneficiary if applicable; the concept in which the insurance is insured, that is, the identification of the interest that links the insured with the insured object (owner, etc.)
        
        Obligation to guarantee against risk: this is the abstract obligation during the life of the contract, and, once the loss has occurred, it is specified in the payment of the compensation. It must compensate at the end of the investigations necessary to establish the existence of the loss. Only then this debt is licit and enforceable.
        
        The proposal of the insurance contract, whatever its form, does not oblige the insured or the insurer. The proposal may be subject to prior knowledge of the general conditions.
        
        Co-insurance is an insurance contract subscribed on the one hand by the insured party and on the other hand by several insurers who assume with complete independence from each other the obligation to respond separately from the part of the risk that corresponds to them. It is possible that an insurer cannot respond financially for the totality of a risk because it does not transfer its plenary sessions and it is when the figure of co-insurance appears, by virtue of which there are several insurers that intervene independently in the insurance.
- - - - The validity of the insurances that are handled in this branch are not expressed chronologically, that is to say, determining the day and the hour, but, in the case of the marine insurance the validity is established from the moment in which the goods remain in charge of the carriers, it continues during the normal course of the trip and it finishes with the unloading of the same ones in the wharf of the port of destination or with the delivery of the goods in the consignee's warehouse (this last one in the case of having contracted the extension of the validity of "warehouse to warehouse").
        
        Just before the turn of the century (1900) a very intelligent judge named Lord Chalmers decided that it was too complicated to always have to resort to legal antecedents and introduced a bill in the House of Lords in order to compile old cases in an easy to understand work, giving rise to the 1906 book of statutes, which became the 1906 marine insurance law still applicable today.
        At about the same time, the London Underwriters Institute, which later changed its name to the International Underwriting Association (IUA), became increasingly important as the organizer of the standard clauses for marine insurance.
        
        Single or per trip: it is applied for occasional expeditions and offers protection to the goods during a given journey. The insured party must provide the shipment documents, which attest to the movement and commercial invoices that support the purchase-sale operation. It summarizes the fundamental guidelines that the insured party must follow in order to protect the rights of recovery, minimization of loss and attitude towards claims.
        
        The covers constitute the set of risks that are insured and their purpose is to obtain all the protection depending on the nature of the loss or damage, the importance of one or another, and the circumstances in which it occurs. The scope of the coverage ranges from the minimum protection, of total loss of the ship only, to the maximum of "against all risks".