(a) State three marine perils.
(b) List and explain three types of cover available under marine insurance.
Explanation
(a) Marine Perils:
(i) Unfavourable climate (weather condition)
(ii) Ship breakdown
(iii) Hijacking (terrorism)
(iv) Wrecking
(v) Stranding
(vi) Collapse of dock
(vii) Theft
(viii) Collision (sea accident)
(ix) fire
(x) Short landing
(xi) Discrepancy
(xii) Jettison
(xiii) Barratry
(xiv) Capsizing
(xv) Piracy (sea attack)
(xvi) Explosion
(xvii) Tidal wave (tsunami)
(xviii) Seizures
(xix) Storm
(xx) Sinking.
(b) Types of Marine Insurance Cover:
(i) Cargo
(ii) Liability
(iii) Hull
(iv) Freight.
(i) Cargo Cover: It grants cover to the goods from the point of loading at the country of origin up to the point of discharge at the country of destination.
(ii) Liability Cover: Is a type of coverage that provides compensation for bodily injury and damage to third party property arising from the usage of the ship and other port facilities.
(iii) Hull Cover: Is a cover that grants protection to ship itself as well as the machineries within the ship arising from loss or damage which may be caused by the perils of the sea.
(iv) Freight Cover: It covers the risk faced by the ship-owners to pay back freight if the cargo fails to reach its destination if lost in transit.