Marine Insurance Course Of Marinarch, Mumbai (Taught By Dr. Brijendra K. Saxena)
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- 1.
Insurance is to cover all:
- A.
Financial and known losses
- B.
Financial and unforeseen losses
- C.
None of these
- D.
Emotional and unforeseen losses
Correct Answer
B. Financial and unforeseen lossesExplanation
Insurance is a financial protection mechanism that helps individuals or organizations mitigate the risks of unforeseen events that may result in financial losses. By providing coverage for unforeseen losses, insurance ensures that policyholders are financially protected in case of accidents, natural disasters, or other unexpected events. This coverage does not extend to emotional losses or known losses, as insurance primarily focuses on providing financial support for unforeseen circumstances.Rate this question:
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- 2.
Which of the following does not come in the scope of marine insurance?
- A.
Damage to the accommodation of a ship
- B.
Liability of the ship owner towards injury sustained by an office executive of a shipping company
- C.
Containerized cargo traveling on a truck
- D.
Liabilities of a charterer
Correct Answer
B. Liability of the ship owner towards injury sustained by an office executive of a shipping companyExplanation
The correct answer is "Liability of the ship owner towards injury sustained by an office executive of a shipping company." This does not fall within the scope of marine insurance because it pertains to the liability of the ship owner towards an individual, rather than insuring against risks related to the transportation of goods or vessels. Marine insurance typically covers risks such as damage to the accommodation of a ship, containerized cargo traveling on a truck, and liabilities of a charterer.Rate this question:
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- 3.
Which of the following will not be included in general average?
- A.
Intentional damage to the ship
- B.
Intentional damage to the cargo
- C.
Total loss of the ship
- D.
Total loss of four containers intentionally thrown in the sea
Correct Answer
C. Total loss of the shipExplanation
General average is a principle in maritime law where all parties involved in a sea voyage share the losses incurred for the common good. It is based on the concept that sacrifices made for the safety of the ship and cargo should be shared by all. In this context, the total loss of the ship is not included in general average because it is not a sacrifice made for the common good. It is a complete loss that cannot be shared among the parties involved.Rate this question:
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- 4.
Which of the following may have exposure of risk on a charterer?
- A.
Damage to a machinery due to negligence of an engineer on board ship
- B.
Damage to a machinery due to bad weather
- C.
All of these
- D.
Damage to a machinery due to bad quality of fuel
Correct Answer
D. Damage to a machinery due to bad quality of fuelExplanation
When a charterer is responsible for hiring a ship, they may be exposed to the risk of damage to machinery due to bad quality of fuel. This is because the charterer is responsible for ensuring that the ship is supplied with proper fuel, and if they fail to do so, it can result in damage to the ship's machinery. This risk can lead to increased costs for repairs and potentially delays in the charterer's operations.Rate this question:
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- 5.
A ship owner is purchasing a second hand ship which was insured by the existing owner four months back for a period of one year. Advice the new owner regarding the hull insurance.
- A.
He does not need to do anything.
- B.
He can continue the same insurance for next eight months.
- C.
He needs to buy a fresh hull insurance.
- D.
He can be a joint insurer with the earlier ship owner.
Correct Answer
C. He needs to buy a fresh hull insurance.Explanation
The new owner needs to buy a fresh hull insurance because the existing insurance was purchased by the previous owner and it is not transferable. Since the new owner is purchasing the ship four months after the insurance was taken, the coverage will only be valid for the remaining eight months. Therefore, to ensure continuous coverage, the new owner should buy a new hull insurance policy.Rate this question:
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- 6.
A vessel has H&M policy with a deductible of 100,000 $. The insured value of the Vessel is 10,000,000 $. During the voyage the vessel is reported missing presumed actual total loss. The ship owner will receive 9,900,000$ from the insurance as a settlement of claim.
- A.
Yes he will get 9.9 million $.
- B.
No he will get 10.0 million $
- C.
He will get 10.1 million $.
- D.
He will not get anything.
Correct Answer
B. No he will get 10.0 million $Explanation
The insured value of the vessel is $10,000,000 and the deductible for the H&M policy is $100,000. In the event of a claim, the insured would receive the insured value minus the deductible. Therefore, the ship owner would receive $10,000,000 - $100,000 = $9,900,000.Rate this question:
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- 7.
A ship ran aground due to the negligence of the master of the vessel resulting in damage to its hull. The company can claim for this damage from its Hull and Machinery insurance.
- A.
No this will not be covered.
- B.
Yes it will be covered.
- C.
No. It has to claim from its P&I club.
- D.
It will be shared between H&M and P&I insurances.
Correct Answer
C. No. It has to claim from its P&I club.Explanation
The correct answer is that the company cannot claim for the damage from its Hull and Machinery insurance and instead has to claim from its P&I club. This is because Hull and Machinery insurance typically covers physical damage to the vessel itself, while Protection and Indemnity (P&I) insurance covers liabilities and legal expenses arising from the operation of the vessel, including damage caused by negligence. Since the ship ran aground due to the negligence of the master, the damage falls under the scope of P&I insurance rather than Hull and Machinery insurance.Rate this question:
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- 8.
A tweendecker ship is carrying assorted types of general cargo. During voyage smoke was seen coming out from a cargo hold. Master realizing that there was a big fire in the cargo hold ordered fire to be fought by using water. Afterwards it was found that the fire was small. Some packed cargo got damaged due to the effect of seawater used in fighting fire. With regards to general average which will be your answer?
- A.
Yes ship owner will be right in declaring GA.
- B.
No he cannot declare GA.
- C.
Declaring GA may not be valid as the action taken was not reasonable.
- D.
Declaring GA may not be valid as the ship was not seaworthy.
Correct Answer
C. Declaring GA may not be valid as the action taken was not reasonable.Explanation
The correct answer is "Declaring GA may not be valid as the action taken was not reasonable." This is because the master's decision to fight the fire with water, which resulted in damage to the packed cargo, was not a reasonable action. General Average can only be declared if the actions taken to prevent or minimize the loss are reasonable and necessary. In this case, using water to fight a small fire in a cargo hold was not a reasonable action, as it caused further damage to the cargo. Therefore, the ship owner may not be able to declare General Average in this situation.Rate this question:
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- 9.
An exporter of expansive garments is sending a large consignment of ready made garments to a buyer. As per the contract of sale, the seller needs to insure the cargo. The seller is confused if he should insure with ICC (A); ICC (B); or ICC (C) clauses. Briefly advise the seller.
- A.
He should insure under ICC (C)
- B.
He should insure under ICC (A)
- C.
It is not necessary to insure.
- D.
He should insure under ICC (B)
Correct Answer
B. He should insure under ICC (A)Explanation
The seller should insure under ICC (A) because it is stated in the question that the seller needs to insure the cargo as per the contract of sale. Therefore, insuring under ICC (A) would fulfill the requirement of the contract.Rate this question:
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- 10.
A salvage company is paid when:
- A.
The ship is not saved
- B.
The ship is saved
- C.
The charges are pre-decided and the salvors are paid immaterial of the result
- D.
The ship is saved then the Arbitration decides the amount
Correct Answer
D. The ship is saved then the Arbitration decides the amountExplanation
In this scenario, the correct answer is "The ship is saved then the Arbitration decides the amount." This means that if the salvors are successful in saving the ship, the amount they will be paid is determined by the arbitration process. This suggests that there is a separate evaluation or negotiation that takes place after the ship is saved, in order to determine the appropriate payment for the salvage company.Rate this question:
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Current Version
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Apr 28, 2023Quiz Edited by
ProProfs Editorial Team -
Apr 19, 2020Quiz Created by
Brijendra Saxena
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