SEAWORTHINESS WARRANTY

-
SEAWORTHINESS WARRANTY seaworthiness warranty is a crucial promise made by the assured (vessel owner) to the insurer. There is an implied warranty in every voyage policy that the ship must be seaworthy at the commencement of the insured voyage or, if the voyage is carried out in stages, at the commencement of each stage of the voyage. Types of Seaworthiness: 1- Voyage Seaworthiness: The vessel must be seaworthy for the specific voyage it's undertaking, considering factors like route, weather conditions, and cargo being carried. 2- Port Seaworthiness: If the policy applies while the vessel is in port, it should be reasonably fit to encounter the ordinary perils encountered within that port (e.g., strong currents, potential collisions with other docked vessels). To be seaworthy, the ship must be reasonably fit in all respects to encounter the ordinary perils of the contemplated voyage, property crewed, fuelled and provisioned, and with all her equipment in proper working order. Cargo policies waive breach of the warranty, except where the Assured or their servants are privy to the unseaworthiness. Breach of the warranty is not excused in a hull voyage policy, literal compliance therewith being required. Although there is no warranty of seaworthiness in a hull time policy, claims arising from unseaworthiness may be prejudiced if the ship sails in an unseaworthy condition with the knowledge of the Assured. Why is Seaworthy warranty Important? 1- Mitigates Risk: A seaworthy vessel is less likely to be damaged or lost at sea, reducing the risk of claims for the insurer. 2- Fair Pricing: Insurers base their premiums on the level of risk involved. A seaworthiness warranty ensures the risk is accurately reflected in the premium amount. 3- Incentivizes Safe Practices: It encourages shipowners to maintain their vessels properly and prioritize crew competence, ultimately promoting safety at sea. If the insurer can prove the vessel was unseaworthy at the outset of the voyage and this unseaworthiness was a contributing factor to a loss, they can deny the claim entirely or partially. The burden of proof typically lies with the insurer to demonstrate unseaworthiness. #BeNewinsurance #InsurTech #inclusiveinsurance #insurance #reinsurance #takaful

Comments

Post a Comment

Thank you for making this valuable comment.

Popular posts from this blog

Disability Appeal

-
Image
Disability Appeal A disability appeal in insurance is a process that allows a policyholder to challenge the denial of their disability insurance claim. If a policyholder's disability claim is denied, they will typically receive a denial letter from the insurance company. The denial letter will explain the reason for the denial and the policyholder's right to appeal. Here are some common reasons why disability insurance claims are denied: -The claim is not covered by the policy. -The policyholder has not met the definition of disability under the policy. -The policyholder has failed to provide sufficient evidence of their disability. -The policyholder has violated the terms of the policy. The insurance company will then review the appeal and make a decision. If the insurance company upholds the denial, the policyholder may have the option to file a lawsuit against the insurance company. Remember during an appeal you must show the court, through substantive evidence and w
Read more

Policyholder (Contract Holder)

-
Image
Policyholder (Contract Holder) A policyholder is the person who purchases and owns an insurance policy. The policyholder is responsible for paying the premiums and is entitled to the benefits of the policy. The policyholder may also be the insured person, but this is not always the case. For example, a parent may purchase a life insurance policy for their child, or a business owner may purchase a health insurance policy for their employees. For life insurance it's a little bit different. You may be the policyholder, but someone else may be the insured party. In addition, you will need to name one or several beneficiaries of the policy. In life insurance, the policyholder owns and controls the policy but is not always the insured. A wife can purchase a term life insurance policy with her husband as the insured and name her adult son and herself as the beneficiaries. As policyholder, she controls the life insurance policy. If her husband dies during the coverage period, the wif
Read more

Offset

-
Image
Offset An offset in insurance is a reduction in the amount of benefits that an insured person is entitled to receive because they are also receiving benefits from another source they receive. Offsets are most common in disability insurance and workers' compensation, but they can also be found in other types of insurance, such as life insurance and health insurance. Insurance companies are not prohibited from applying offsets this because if you were allowed to keep the full amount of all of the various disability benefits to which you might be entitled, it would be possible for you to earn more money on disability than you would by working. There are two main types of offsets: Income offsets: Income offsets reduce the amount of benefits that an insured person is entitled to receive by the amount of other income that they are receiving, such as Social Security Disability Insurance (SSDI) or workers' compensation. Expense offsets: Expense offsets reduce the amount of ben
Read more