In order to satisfy the varied requirements of the insured
suitable condition are incorporated in marine policy. These condition are the
clauses which are found in the policy.
There are many conditions under which a policy is issued but we shall discuss below
the most important among them:
(1) NAME
OF THE INSURED: In marine policy, the
opening words are following by a blank space which are is used for the name of
insured or his agent. If the name of is not inserted in the policy, the
document will not be a considered as a marine policy. The names of those
persons, who have an insurable interested in the subject matter insured alone
should be inserted in the policy. In the
past in some of the policies the opening words were “ In the name of God”, such
practice does not exist any longer. (2) ASSIGNMENT CLAUSE: According to this clause, a marine policy is a freely
assignable unless this is expressly prohibited. The policy may be assigned to
any person who has insurable interest or
who may acquire it at some later date. Generally, cargo policies can be
assigned freely without giving prior notice to the underwriter insurer but in
case of the hull insurance, the policy cannot be assigned freely and the consent of the underwriting is essential because the degree of risk of
the subject matter is the materially
altered when the management and ownership of the vessel is changed.
As the cargoes on ships change ownership several times before they finally reach the
port of destination the assignment of a
cargo policy is to be done by means of the blank endorsement i.e, by putting
the signature of the insured or his agent if the policy is in the name of the
agent. On the contrary, the hull insurance policy should be assigned only by
means of specific endorsement. It is
interesting too note that marine policy can be a assigned even after it takes places, but the assignee
cannot be a get a better title than the assignor.In marine policy was that
sometimes the merchants receive information of shipments of their cargoes very
late, particularly after the sailing of
the steamer. In such cases therefore both the parties viz. the insured and the
insurer were ignorant about the safety or otherwise of the subject matter. In
order to provide protection to the
merchants for such shipments the Lost or Not Lost Clause has been inserted in the policy which makes the insurer liable
to indemnify the insured whether the subject matter before the date of issues
of the policy has already been lost in the way or not lost. The inclusion of
these words makes the policy effective
from a retrospective date and
covers any loss which might have occured
between the period of shipment of the date of issue of the Policy.
It is quite obvious that the clause
pre-suppose complete reliance on the principle of good faith on the part of the
parties. If at any point of time, it is proved that one of the parties, was in
possession of information about the safety or otherwise of the subject matter,
the contract of marine insurance will
come to an end. For example if the insurer at the time of taking the policy
knows that the good have already reached
the port of destination safely or the insured aware that the goods have
been destroyed on the way, then in both
the cases, the policy will be declared void an account of concealment of fact. This
clause was most prevalent in olden times
when communications network was not so developed. But now this clause has lost
of much of its importance.
(4) AT AND FROM CLAUSE: This clause describes the
point of times from which the risk
commences and is generally applied to hull and frieght insurance. When a ship is insured “at and
Form” a particular place, the risk commences as soon as the ship is arrives at the port safely. It means that
the policy covers the subject matter
while it is lying at the port of the departure
and from the time the ship sails.
For example, if they policy contains the
words, “ at and from Chennai it means that the subject matter is covered under
the policy up to the time the ship
stays in Chennai or any time it leaves
the Chennai port. In case the policy
contains the word “From” instead of at and from the risk of covered only from the time of a departure and bot
prior to that. For example if the policy provide. From Mumbai, it will imply
that the insurer is liable for any loss
or damage arising after the ship has sailed
from the port of Mumbai and not before that. In case of goods, the risk commences from the time
they are loaded on a the vessel and insurers are not responsible for the loss
while in transit In lighters and crafts from the shore to the ship. If the
place of departure is specified by the
policy and the ship sails from other place than the specified one, the
risk does not attach.