Question Ans:

__________ is a rate percent applied to the Sum Insured

of the Vessel and is thus conditioned by the age and
insured value factors of the Vessel. Total Loss
___________ is a specialised division of the International
Chamber Of Commerce (ICC) IMB
__________________ is a loading buoy anchored
offshore that serves as a mooring point and interconnect
for tankers loading or offloading gas or fluid products. Single Buoy Mooring
_________is wrongful act of the master and/or crew to
the detriment of the owners of the vessel. Barratry
__are expenses incurred by the assured, their servants or
agents with the intention of preventing or minimizing any
loss or damage that is caused by an insured peril. Sue and Labor charges
A cargo ship on a voyage from Singapore to Hamburg,
carried on board 2,000 containers loaded with general
consumer goods. Freight was $ 500 per container payable
on delivery. Insurance was subject to Institute Voyage
Clauses - Freight and the premium was 3% of the sum
insured. 200 containers were washed overboard due to
heavy weather. Freight was valued at $ 1,300,000What
would be the amount of claim under valued policy? $100,000
A cargo ship on a voyage from Singapore to Hamburg,
carried on board 2,000 containers loaded with general
consumer goods. Freight was $ 500 per container payable
on delivery. Insurance was subject to Institute Voyage
Clauses - Freight and the premium was 3% of the sum
insured. 50 containers were lost due to fire. Freight was
valued at $ 1,300,000What would be the amount of claim
under valued policy? $25,000
A drilling machine is also commonly referred to as _____ Rig
A ship and its cargo incurred loss due to stormy weather.
Propose the type of loss under the marine insurance. Particular Average
A ship had to incur expenditure for jettisoning the cargo
to lighten the ship. Propose a term to describe such type
of expenditure in marine law. General Average
A ship incurred big loss. The reason discovered was the
breakage of shaft of the ship. The insured shipping
company is arguing with the insurer that this reason is not
subject to the requirement of due diligence on the part of
the assured, owners, or managers. Is this argument right? This argument is wrong
A vessel has to undergo survey by a classification society At periodic intervals as suggested by the
________. classification society
A vessel is aground and her engine and equipment are
damaged in efforts to refloat the vessel. The act gets
qualified as General Average with insurance company.
This act is an example of ____. Extraordinary sacrifices
A vessel is insured for 10,00,000 under ITC-Hulls with a
deductible of 10,000. A particular average claim for
damage of 15,000 arises from an insured casualty
occurred on 1.10.90. Subsequently on 1.10.92, a recovery
of 6,600, inclusive of 600 interest, is made. Calculate the
apportionment of interest between the assured and
Insurer for the period 1.10.91 to 1.10.92. Assured Rs.300 and Insurer Rs Nil
A vessel is insured for 10,00,000 under ITC-Hulls with a
deductible of 10,000. A particular average claim for
damage of 15,000 arises from an insured casualty
occurred on 1.10.90. Subsequently on 1.10.92, a recovery
of 3,300, inclusive of 300 interest, is made. Calculate the
apportionment of interest between the assured and
Insurer for the period 1.10.91 to 1.10.92. Assured Rs.75 and Insurer Rs 75
A vessel with cargo on-board gets detained by pirates in
Somalia. Pirates put the ransom demand of USD 5 million
for the release of the vessel, its cargo and crew. In such a
case the payment of ransom to pirates for release of
vessel and cargo will be considered to be _________ General Average Act
a) Underwriters agree to indemnify the assured for 3/4ths
amount of any sum PAID by the assured to any other
person(s) by reason of the assured becoming legally liable
by way of damages for which of the following types of
losses, damages or liabilities?I. Loss /damage to any other
vessel or property on any other vessel;II. Delay to or loss
of use of any such other vessel or property thereon;III.
General average of, salvage of or salvage under contract
of any such other vessel or property thereon.IV. Removal
or disposal of obstructions, wrecks, cargoes or any other
thing whatsoever I, II, and III
ABC Ltd. a ship repairing company wants to know which
of the following losses can it claim under the Ship
Repairers Liability Insurance. Kindly help the company by Liability of the repairer or his agents /
choosing the right option. contractors towards removal of wreck
ABC Ltd. a shipping company wants to cover a few perils
by paying some additional premium under the Institute
Additional Perils Clause Hulls 1-10-1983. Which one of the
following perils can the company cover? Any boiler which bursts
ABCD Ltd., a shipping company is looking for a vessel that
has facility for shipping lorries, trailers, cars etc. without
need for cranes. Propose which is most appropriate. Ro-Ro Vessel
Advise in a situation of successive losses, about the An underwrite is liable for successive losses
insurers liability with regards to the claim processing for even though the total amount of such
Marine Hull Insurance. losses may exceed the sum insured
Ajay, an insurance student wants to know that in which of
the following cases can the insured claim Constructive
Total Loss under Marine policy?I. Subject matter is I, II and III
reasonably abandoned because Actual Total loss appears
unavoidable II. To prevent Actual Total Loss some
disproportionate expenditure is required to be incurred
which exceeds the value of the goods after it is savedIII.
When the assured is deprived of the subject matter
insured
An insurance student is confused as to which one of the
following statements best describes an producing well.
Identify for him. Wells that produce hydrocarbons
An insurance student wants to know, what are Flexible
Subsea Hoses, generally referred to as? Risers
An oil company is installing a SBM to create a transfer
system by means of which crude oil or gas can be
transferred from the VLCC to the shore or vice versa. Do
you agree? The company is doing right
An oil exploration company wants to know the wells that
are drilled to maximise production from the reservoir
after the appraisal wells. Propose them. Development Wells
Ultra Large Crude Carrier - over 300,000
Analyse which one of the following is true. DWT
ARB Shipbuilders have taken a HM policy with respect to
one of the vessels being constructed. The vessel during its
testing had a collision with another vessel. Explain under
the collision liability clause of Institute Clause for Builder
Risk, which one of the losses is covered and provided for? General average of other vessel
As per the franchise clause in case of particular average
loss of freight, proximately caused by the insured perils,
other than those mentioned in the said clause, there will
be no claim on the insurers unless the loss exceeds ____
of the insured or insurable value. 3%
As per the War Risks Scheme administered by GIC, losses
on account of damages can be claimed only on the
declaration of war by a country. Argue No. I totally disagree
Ashwin, an insurance student says, "If clauses or
endorsements are attached to the policy they will
override the clauses printed on the policy". Is the student
right? Yes, he is
VLCC's are quite safe and therefore the
Assess which one of the following statement is not a number of explosions are minimal on these
characteristics of VLCC (Very Large Crude Carriers). vessels.
C, an insurance student wants to know, a Ship Repairers
Liability Insurance (SRL) covers which of the following
loss, liability or damage?I. Loss or damage caused to the
vessel under care custody and control of the repairer
while being worked uponII. Any loss in respect of life and
bodily injuryII. Any property owned by / leased to / used
by the assured.IV. Any other property other than that Only I
covered above.V. Collision liability, Tower's liability,
Liability arising out of navigation of subject vessel
Cargo gets damaged by water that was being used to
extinguish fire on vessel. The act gets qualified as General
Average with insurance company. This act is an example
of _________________. Choose an appropriate answer. Extraordinary sacrifices
Charterers' liabilities are the ________liabilities of the
Charterer of a ship. Contractual and legal
Damage caused by collision, stranding, grounding, heavy
weather, fire, etc. are examples of _______. Particular average
Distinguish between Liners and Tramps. Evaluate which In times of depression, tramps are less
one of the following is incorrect. likely to be unemployed than liners
Each ISM compliant ship is audited, first by the company
(internal audit) and then each 2.5 to 3 years by the ____ Flag State Marine Administration
Elizabeth a cargo ship is being sailed to another port with
the intention of being broken and sold for scarp. During Limited to the market value of the vessel as
the voyage, the ship get damaged. What is the basis of scrap at the time the loss/damage is
claiming loss or damage in such instance? sustained
Evaluate one of the following is not a standard clause in It is obligatory on the part of the insurance
the Premium instalment clause framed by Tariff Advisory company to remind the clients about the
Committee? instalments
Evaluate which of the following statement is correct with
regard to 'Partial loss' under section 56 of Marine A Partial loss can be classified as either
Insurance Act? particular average or general average
Evaluate which one of the following classification society
is not a member of IACS? Iranian Classification Societies
Evaluate which one of the following clauses will not be
covered under additional perils under the Institute Loss caused due to defect in the design of
Additional Perils Clause Hulls 1-10-1983. vessel
The indemnity payable under MII shall be
an amount equal to whichever shall be the
least of:i. The unrecoverable claim or part
thereof under Owners' Policies ii. The
outstanding indebtedness under the
Explain how the indemnity payable under a mortgagees declared loan at the time for payment.iii.
Interest Insurable is calculated. The s
A provisional buildingvalue is declared at
inception and the actual completedvalue is
finally declared on delivery. This could be
Explain how the ship building value is determined in up to 25% more than the provisional value-
accordance with Institute of Builders Risk Insurance without need to obtain underwriters prior
clauses dated 1-6-1986. agreement
Explain the indemnity provided for loss under the Indemnity for loss of freight is limited to the
Institute Time Clauses - Freight, gross freight lost
A claim arises on the policy only where the
aggregate of all claims arising out of each
Explain the role of deductible clause in marine insurance. separate accident or occurrence exceeds
 the amount of the deductible
It is designed to give comprehensive
Explain the role of ISPS code. Choose the most guidelines measures to enhance the
appropriate option. security of ships and port facilities
Deadweight Tonnage is the capacity in tons
of the cargo required to load a ship to her
Explain the term Deadweight Tonnage. load-line level
Fishing vessels are allowed to ply only up to ____ nautical
miles into the sea from shore, as per the erstwhile Tariff
and Clauses. 50
Formulate a term to describe loading buoy anchored
offshore that serves as a mooring point and interconnect
for tankers loading or offloading gas or fluid products. Single Buoy Mooring
Fire resulting from carrying dangerous
Formulate an example of GA arising from fault. cargo
The expense of hiring craft to lighten a
Formulate an example of GA expenditure. vessel when it is stranded
Formulate an example of the peril that is subject to the
requirement of due diligence on the part of the assured,
owners, or managers as per ITC-Hulls 1-10-1983. Barratry of crew
Freight for specific voyages or anticipated freight when a
vessel is in ballast may also be insured provided that the
total of all freight insurances does not exceed _______ of
the H&M value. 25%
Himalaya Shipping wishes to insure one of their vessel
worth Rupees 1 Crore for 80 lakhs only. In case of
constructive total loss, what would be the underwriters Underwriter's liability for all claims would
liability? be restricted to 80/100
Hull insurance cover's ship-owners' various insurable
interests. Which of the following are these?I. Hull and
MachineryII. Insurance of Freight - Time/VoyageIII.
Disbursements and Increased Value Insurance All of the above
Identify the next process, once the survey is completed The operator will drill a well to a particular
and the zones below the earth that may possess viable depth to check whether that zone is
quantities of oil or gas are earmarked. commercially viable for production or not
Identify the peril that is not subject to the requirement of
due diligence on the part of the assured, owners, or
managers. Jettison
Identify the time period of coverage in case of builders From the time of laying the keel until the
risk insurance covers for vessels under construction. time of trial runs
Identify the type of vessels which are subject to the
conditions of IFVC 20-7-1987 clauses. Fishing vessel
Identify the type of wells which are drilled to help
estimate the size of the oil or gas reservoir and help
develop it most efficiently. Appraisal Wells
Identify which one of the following is not a broad group
that covers the 26 clauses in the ITC-Hulls 1-10-1983? Underwriting procedure
If General Average can be described as either a 'sacrifice'
or 'expenditure', extra ordinary in nature voluntarily
incurred, then which of the following incidents will be Cargo is sacrificed by jettisoning to prevent
considered as an act of 'Sacrifice'? total loss of the vessel
If Losses of Extraordinary charges qualify as General Straining of a ship's engines when the ship
Average in marine insurance, then which of the following is aground and in a position of peril, in
instances will qualify under General Average? trying to force her off the ground
If the vessel were not insured for its full contributory
value, then underwriter's liability for general average Charged to Profit and Loss account as and
expenditure would be _________ when issued for consumption
If two vessels owned by the same ship-owner collide with
each other, at law, the ship-owner cannot claim from
himself. The clause therefore, provides that in such cases,
for purposes of collision liability the vessels will be
deemed to be in separate ownership and liability decided
by ______________. Arbitrator
IFDI bank has filed for a claim under the Mortgagee When a claim has been presented under
Interest Insurable (MII) cover sought with an insurance the owners' policies and at such a time
company. Advise the bank with regards to the timing of when those underwriters have failed to pay
payment of claim under the MII cover. in whole or in part
In case of claim processing, the sworn statement is made
by the __________. Master of ship
In case of General Average expenditure, the assured ins
entitled to _______. Rateable proportion of his expenses
In case the insurance of the ship gets expired before the The insured must give prior notice to the
ship has reached its destination what step shall the underwriter and pay an additional premium
insured take. Propose. or pro rata monthly basis
In India, explain the position of underwriters with regards The underwriters are free to determine
to determining premium rates and amount of deductibles their own premium rates and the amount
for Marine Hull Insurance? of deductibles
In marine and hull insurance, the term LASH stands
for__________. Lighter aboard ship
From the estimated sound value of the
ship, the cost of repairing any damage
sustained due to the accident and any
In marine insurance how is contributory value of 'ship' subsequent damage received during the
determined? voyage is deducted
In the case of an unvalued policy, the sum which the
assured can recover in respect of a constructive loss on a
policy by which he is insured, to the full extent of the
insurable value, is called ______________. Measure of Indemnity
International Ship and Port Facility Security
ISPS code stands for _______. Code
Kartik an employee at the Carver Insurance Co is drafting
an insurance policy based on the guidelines given in the
Institute of Builders Risk Insurance clauses dated 1-6- Liability in respect of workmen's
1986. Suggest which one of the following is specifically compensation
not covered under the policy?
A provisional buildingvalue is declared at
Mandar, an insurance executive at SGS Shipping wants to inception and the actual completedvalue is
estimate the insured value of a ship being constructed by finally declared on delivery. This could be
his client for which insurance cover has been sought. up to 25% more than the provisional value-
Apply the guidance in Institute of Builders Risk Insurance without need to obtain underwriters prior
clauses dated 1-6-1986 to determine its insured value. agreement
Mr Ajay is drafting an insurance policy for one of his client
who wishes to get a H&M cover. Generally under the ITC
(Hulls) clauses, some standard exclusions are provided.
Which one of the following is not an exclusion under the
clauses? Nuclear exclusions
Mr Sameer is drafting an insurance policy for one of his
client who is into ship building business. The policy is to
be drafted as per the Institute Clauses for Builders' Risks
1-6-1986. Some standard exclusions are provided under
this policy. Which one of the following is not an exclusion
under the clauses? Loss caused due to faulty design of parts
Mr. A, an insurance student wants to know that the
underwriters agree to indemnify the assured for 3/4ths
amount of any sum PAID by the assured to any other
person(s) by reason of the assured becoming legally liable
by way of damages. But which of the following types of
losses, damages or liabilities are not paid for?I. Loss
/damage to any other vessel or property on any other
vessel;II. Cargo or other property on, or the engagements
of, the insured vessel;III. Any real or personal property or
thing whatsoever except other vessel or property on
other vessels.IV. Loss of life, personal injury or illness II, III and IV
Mr. A, an insurance student wants to know which of the
following are exclusions from the collision liability payable
by underwriters?I. Removal or disposal of obstructions,
wrecks, cargoes or any other thing whatsoeverII. Any real
or personal property or thing whatsoever except other
vessels or property on other vesselsIII. The cargo or other
property on, or the engagement of, the insured vessel All three
Mr. B is an insurance student. Help him identify, the
vessel which is not an example of sundry vessel? Container vessels
Nitin, an employee of a insurance company is drafting a
policy covering war risks for one of its clients in
accordance with Institute War and Strike Clauses Hulls
Time (1-10-1983). Which one of the following perils will
be covered? Expropriation
One of the ships of a shipping company is damaged and
the estimated cost of repairing it would exceed its
repaired value. The company plans to abandon the ship
and claim CTL. Is their claim admissible? Yes, their claim is admissible
Propose a device used by SBM's Mooring and Anchoring
Parts to connect the buoy to the seabed. Anchor
Propose a term commonly used to describe an oil-well or
a gas-well or a gas reservoir which is to be reached in the
process of exploration of oil. Wellbore
Propose the name of the class of ocean marine insurance
that provides ship owners comprehensive liability
insurance for property damage and liability to third
parties. Protection and indemnity insurance
Propose the term used to refer to the expenses incurred
by the assured, their servants or agents with the intention
of preventing or minimizing any loss or damage that is
caused by an insured peril. Sue and Labor charges
The column of mud inside the well has to
be kept at a density so that it exerts a
Propose the way in which the pressure exerted by the pressure greater than the pressure exerted
formation of wells upwards is balanced. by the formation
Rule VII of the York-Antwerp Rules is about _____. Damage to Machinery & Boilers
Rule XIV of the York-Antwerp Rules is about _____. Temporary repairs
Salvage charges are charges recoverable under Marine
Law by a ___________ independently of contract. Salvor
Sameer has been given an exercise to determine the
capacity of a ship. He computes the total space available
on the ship and reduces certain spaces such as
machinery, crew accommodation, ballast spaces. Which
measurement is he likely to compute? Net Tonnage
Section 352-B of the Merchant Shipping Act is based on
the International Convention relating to the Limitation of
Liability of Owners Sea going Ships, 1957. What is the
right to limitation liability for personal injury set at? 3,100 gold francs/Tonne
Seema, an employee at the Emmar Insurance Co is
drafting an insurance policy based on the guidelines given
in the Institute of Builders Risk Insurance clauses dated 1-
6-1986. Suggest which one of the following is specifically
not covered under the policy? Cost of renewing faulty welds
Sometimes it may be necessary to effect temporary
instead of permanent repairs, for the following reasons:I
It is not possible to effect permanent repairs at the
particular port due to lack of proper facilities , orII. Owing
to high prices, it may be more economical to effect
temporary repairs and move the vessel to another port
for permanent repairs, orIII. It may suit the convenience
of the ship owner to effect temporary repairs only so that
he can gain time which is often of considerable
importance where a contract of affreightment is
concerned.In which of the following situations is the
temporary cost reimbursed by insurers? I and II
Sue and labour clause covers the expenses incurred only
by the ______________________. Assured and his employees
Sujit an employee at Franco Insurance company is
drafting an insurance policy for one of its clients who is in
ship building business. Sujit refers to the Institute Clauses
for Builders' Risks 1-6-1986 for details to be included in
Section I. Suggest which one of the following detail is not Name of person in case the vessel is
to be included in the policy document under Section I. mortgaged
Sumit entered into a Marine Hull contract with BN
Insurance. Which of the following legal rights can arise in
Marine insurance in case of Constructive Total Loss? Right of Abandonment
Suppose that:Contributory Value of the vessel
10,00,000H&M Policy (so valued)
6,00,000General Average Contribution 5%Thus the
Insured's liability under GA is 50,000From the ITC Hulls,
he can claim 5% of 6,00,000 i.e. 30000Suppose the
Insured has an Excess Liabilities cover for
2,00,000Calculate the recovery under this policy. Rs. 50,000
The auction fee incurred for disposing a damaged cargo
and sale charges are examples of ___________________. Extra charges
The cover granted under hull policy meets the
requirements of an individual ship-owner and protects
him against loss of cargo on the ship. Argue. The statement is wrong
The entered value for war risk insurance scheme in India
will include:I. Hull and machinery valueII. Increased value
insurance for marine risksIII. Disbursement I, II and III
The following data is provided for a particular vessel
belonging to JLN Shipping: GT - 20,000Sum Insured -
30,00,00,000Type - General cargo carrierTotal Loss Rate -
0.75%OTL - Rs 80.00 per GTDeductible -
10,00,000Calculate Total combined premium. Rs. 30,50,000
The following data is provided for a particular vessel
belonging to MZN Shipping: GT - 10,000Sum Insured -
15,00,00,000Type - General cargo carrierTotal Loss Rate -
0.75%OTL - Rs 40.00 per GTDeductible -
10,00,000Calculate slip rate to be quoted to the client. 1.11%
The Government of India War Risks Scheme for Marine Ships registered under The Merchant
Hulls was introduced in the year 1976 is applicable to __ Shipping Act
The insured value of a vessel is 60 lakhs and the sound
value of the vessel is 80 lakhs. The sue and labor charges
that was incurred by the assured at the time of peril was
40 lakhs. What amount should the insured claim from the
insurance company? Rs. 30 lakhs
The purpose of reinsurance is to:I. Reduce overall liability
to within underwriting limitsII. Offload an undesirable risk
either fully or partly Both I and II
The Real Property section under the Ports package Defects in design
insurance policy covers certain losses and damages.
Identify which one of the damage/loss is not covered in
this section.
This is a sworn statement made by the Master/Chief
Officer/ Chief Engineer before a _______. Notary public
Two vessels 'A' & 'B' are in collision and owner of vessel
'A' is 75% to blame and owner of 'B' is 25% to blame. The
damages assessed are as follows:i. Damage to 'A' is
1,00,000ii. Damage to 'B' is 2,00,000Calculate A's single
liability to B. Rs.125,000
Two vessels 'Alpha' & 'Beta' are in collision and owner of
vessel 'Alpha' is 75% to blame and owner of 'Beta' is 25%
to blame. The damages assessed are as follows:i. Damage
to 'Alpha' is 2,00,000ii. Damage to 'Beta' is
4,00,000Calculate the value receivable / payable by B
using single liability principle. Receivable Rs.250,000
Under marine insurance, if an insurance policy covers
Total loss, then which of the following type of losses will
be covered under the policy? Actual Total loss of Constructive total loss
Under notice of claims and tenders clause provided under
ITC Hull Clauses 1-10-1983, what is the maximum
allowance provided for the time lost between the
invitation to tender and the acceptance of the tender. 30%
Under the Builders Risk Insurance cover, if the insured
value ascertained exceed 125% of the provisional value,
the limits of indemnity shall be ________. 125% of provisional value
Under the Builders Risk insurance cover, which one of the
following losses or damages is not covered by the
underwriter during the insurance period? Renewing faulty welds
Under the collision liability clause of ITC hulls clauses 1-
10-1983, evaluate which one of the losses is covered and Demurrage caused to the other vessel due
provided for? to collision
Under the collision liability, what is the maximum time
period allowed for prosecuting claims arising therefrom? One year
Under the I.T.C. Hulls Port Risks 20-7-1987 clauses which
one of the following perils is not covered? Earthquake
Under the Institute Clauses for Builders' Risks 1-6-1986,
instalment facility for payment of premium is available for
policies with a tenure of more than _______ 12 months
Under the Institute Clauses for Builders' Risks 1-6-1986,
insurers are not liable for any loss or expenditure incurred
solely in remedying a fault in design or for any additional
expenses incurred in any improvement or alteration in
design. Do you agree? Yes. Agree completely
Under the Institute Clauses for Builders' Risks 1-6-1986,
Underwriters agree to indemnify the assured for ___ of
any sum PAID by the assured to any other person(s) by 4/4th
reason of the assured becoming legally liable by way of
damages due to collision.
Under the Institute War and Strike Clauses Hulls Time - 1-
10-1983, evaluate which one of the following damages, Damages due to detonation of nuclear
losses or liability is excluded? weapon
Under the Insurance policy provided for SBM's, which of
the following losses are covered?I. Damage due to
contact with aircraftII. Damage to subject matter insured
caused by any latent defectIII. Damages due to
earthquakes I and II
Under the insurance policy provided for SBM's, which of
the following losses are excluded?I. Fire, lightning and
explosionsII. Damage to subject matter insured caused by
any latent defectIII.Loss due to earthquakes Only III
Under the Premium Instalment Clause of Marine Hull Full stamp duty paid with the first
Insurance, explain how stamp duty is to be paid. instalment
Under the Rule of Practice of Association of Average
Adjusters, which section contains the York-Antwerp
Rules? Section C
Under the Rule of Practice of Association of Average
Adjusters, which section contains the Damage and repairs
to ship? Section D
Underwriters are liable for detention or loss of
employment of the ship (demurrage) consequent on
particular average damage. Do you agree? No, I don't
War Risks Scheme for Marine Hulls introduced by From the time of launching in Indian waters
Government of India applies to ships which were under or from the time the ships are at risk of
construction or were purchased from foreign owners __ Indian owners
What are the conditions to be fulfilled for a Mortgagee's
Interest Insurance?I. A Registered Ship Mortgage on the
vessel must be held by the insured Bank/Lender.II.
Owners' Policies and Club Entries must be taken out for
an insured value and a limit of liability must not be less
than the Applicable Facility Amount.III. The Assured's
right to the Owner's policies must be assigned to the
Mortgagee I, II and III
What is the advantage of the fixed premium (non-mutual)
P I cover that is offered by some of the PI clubs?I. It is
cheapII. It has high indemnity limitsIII. Ship-owner does
not have to bear the additional calls for premium due to
adverse claims of other fleets during the year. I and III
What is the maximum limit under the Disbursement and
Increased value Insurance for insurance coverage? 25% of the H&M value may be insured
When a hull insurance is renewed, the renewal terms may
provide for reduction in rates in cases of favourable claim
ratio based on the formula suggested by Hull Technical
Committee. How many past years data was evaluated to 5 years
infer a favourable claim ratio?
When did the IRS attain full membership in IACS? June 2010
Which factor is used to indicate the towing power of a
vessel? BHP
Which of the following are covered under the property
damage of a Port Package Policy?I. Impact Damage from
Vessels.II. Mechanical Electrical Breakdown, explosions,
release of safety valvesIII. Cost & Expenses for removal of
debris I and III
Which of the following are covered under the property
damage of a Port Package Policy?I. Impact Damage from
Vessels.II. Strike, Riot, Civil Commotion and Terrorism
(Excluding War).III. Cost & Expenses for removal of debris I, II and III
Which of the following are covered under the property
damage of a Port Package Policy?I. Impact Damage from
Vessels.II. Mechanical Electrical Breakdown, explosions,
release of safety valvesIII. Wear & Tear Only I
Which of the following are incorrect as per The "Total
Loss" clause (No. 15) of Institute Time Clauses - FreightI.
In the event of total loss (actual or constructive) of the
vessel named herein, the amount insured shall not be
paid in full, if the vessel be fully or partly loaded or in
ballast, chartered or unchartered.II. In ascertaining
whether the vessel is a constructive total loss, the insured
value in the insurances on hull and machinery shall be
taken as the repaired value and nothing in respect of the
damaged or break-up value of the vessel or wreck shall be
taken into account.III. Should the vessel be a constructive
total loss but the claim on the insurances on hull and
machinery be settled as a claim for partial loss, no
payment shall be due under this clause. Only I
Which of the following are part of Customer Liabilities &
Third Party Liabilities under a Port Package Policy?I.
Business InterruptionII. Liability for Errors & omissionsIII.
Liability for Fines & Duties II and III
Which of the following are part of property damage
under a Port Package Policy?I. Real PropertyII. Handling
EquipmentIII. Port Blockage I and II
Which of the following are perils that Sea ports may be
exposed to, during the course of their operations?I. Costs
of Pollution, clean-up and containmentII. Loss due to
piracyIII. Liability to Ship-owners / cargo owners and
other customers I and III
Which of the following damages are covered under the
energy package policy under the Section 2 Control of
wells?I.Loss of drilling equipment insured else whereII.
Cost of fire fightingIII. Pollution caused which is violation Only II
of governmental rule
Which of the following is correct for General average
expenditure?I.Expenditure is intentionally/voluntarily II.
Incurred for common safetyIII. There is no limit and may
be unreasonable at time I and II
Which of the following is correct in relation to Collision
Liability?I. Claims under the Collision Liability Clause are
to be added to other claims under the policy arising out of
the same accident or occurrence and the policy
"deductible" is applied to the aggregate of such claims.II.
Where the carrying ship has been partly to blame the
cargo owners may proceed against the ship owner and
recover the whole of their loss and the Admiralty rule as
to division of loss has no applicationIII. Underwriters
agree to indemnify the assured for 3/4ths amount of any
sum paid by the assured to any other person by way of
loss or damage to others vessel I, II and III
Which of the following legal rights confers proprietary
interests in the subject matter on payment of claim in
marine insurance? Right of Abandonment
Which of the following losses can be recovered under the
Marine policy? All of the above
Which of the following statements are correct as per the
York-Antwerp Rule?I. Jettison of cargo shall be made
good as general average provided such cargo is carried in
accordance with the recognised custom of tradeII.
Damage done to a ship and cargo shall be made good
which is caused by fire and smokeIII. Expenditure incurred
by the parties to the adventure in the nature of salvage
shall be covered provided they are strictly covered under
contract Only I
Which of the following statements are correct as per the
York-Antwerp Rule?I. Jettison of cargo shall be made
good as general average provided such cargo is carried in
accordance with the recognised custom of tradeII.
Damage done to a ship and cargo shall be made good
which is caused by fire and smokeIII.When a ship is
intentionally run onshore for the common safety the
consequent loss or damage to the property involved in
the common maritime adventure shall be allowed in
general average I and III
Which of the following statements are correct?I. In case
of total loss the amount recoverable is the value insured
by the policyII. In case of sue and labour expenses, they
are paid after deducting a deductibleIII. From third part
liability arising from collision the claim payable is always
in full I only
Which of the following statements best describe the act
of collision as described in Collision Liability Clause of ITC- Forcible contact between two or more
Hulls ? ships
Which of the following well is drilled to maximise
production from the reservoir? Development Wells
Which one of the following is a condition to claim a
constructive total loss (CTL) under Section 60 of Marine The vessel is damaged and the estimated
insurance Act 1963? cost of repair exceeds the insured value
Which one of the following is not true for a sailing Sailing vessels carry both dry bulk cargo and
vessels? liquid bulk cargo
Which one of the following is the main role of To protect the integrity of international
International Maritime Bureau (IMB)? trade by seeking out fraud and malpractice
To provide for a forum to discuss and
Which one of the following is the main role of exchange ideas of common interest to
International Union of Marine Insurance (IUMI)? marine insurers and reinsurers
Which one of the following losses and damages are
covered under the Ship Builders Risk Insurance clauses? Collision liability
Which one of the following losses and damages are
excluded under the Ship Builders Risk Insurance clauses? Punitive and exemplary damages
Which unit of measurement is preferred during the
calculation of H&M Risk with respect to tankers? DWT
Whilst on a voyage from Takoradi to Liverpool with 5,000
bundles of timber, a vessel catches fire. 140 bundles are
destroyed totally by fire. Subsequently the vessel
encounters a storm and 110 bundles are washed
overboard and lost during heavy weather.Freight, at the
rate of US dollars 30 per bundle, was at the risk of ship
owner and he has insured it under a valued policy subject
to Institute Voyage Clauses-Freight, for US dollars
170,000. Premium for the policy was US dollars
10,000.Calculate the claim under the policy. $7,500
Who is responsible for the audit of an ISM compliant
ship? Flag State Marine Administration
XYZ Ltd. A shipping company wants to know the correct
insured value of one of its vessels to ascertain the
Constructive Total Loss. Propose the right value to be
taken. Repaired value
XYZ Ltd., a shipping company wants a ship that helps it
carry many and varied services for merchant fleets. Tugs
XZR, a shipping company had insured its vessel with ABC
Insurance Company. The vessel is met with an accident
and drowns in the ocean. If the shipping company decides
to abandon the subject matter to the insurers as the cost
of recovering exceeds the benefits. In this case the
shipping company can claim Constructive Total Loss