12 Marine Perils in Marine Insurance

Losses in marine insurance business are the result of the various perils. The marine
insurance policy does not necessarily cover all the risks.
The insurer is liable to indemnify an insured in respect of only losses which result from
perils insured against.
When the loss occurred is beyond the insured peril, the insured himself shall have to
bear.
The onus of proof under a policy of Marine insurance is upon the insured to establish
that the loss was proximate, caused by an insured peril.
When goods are insured against ‘All Risks’, the onus of proof of loss is transferred to
the insurer.
The perils insured against are mentioned in the policy and the underwriter shall be
liable for damages caused by the insured perils.
“Marine Perils means the perils consequent on”, or incidental to the navigation of the
sea, that is to say, perils of the seas, fire, war perils (enemies), pirates, rovers, thieves,
captures, seizures, restraints and detainment of princes and peoples, jettisons, barratry
and other perils, either of the like kind or which may be designated by the policy.”
Let’s look at the following marine perils;
1. Perils of Sea
Under perils of the sea, the ordinary action of the winds and waves, ordinary wear,
and tear to the vessel, the inherent risk of the cargo is not included.
The underwriter may be liable for losses caused by Perils of the sea; he is not
necessarily liable for perils on the sea.
Perils of the sea refer to fortuitous accidents or casualties of the sea. If the loss arising
out of any of the perils of the sea insured is attributable to the fraud or willful
misconduct of the assured, the underwriter is acquitted from the liability under the
policy.
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2. Fire
In olden times fire was the biggest maritime perils, but recently it has been under
control to a greater extent. Damage resulting from fire and smoke is included under
fire-peril.
The water used for extinguishing fire may cause damage to the insured goods.
So, this peril is also insurable. The damage due to spontaneous combustion may be
maritime peril and be insured against.
Damage was done due to lightning, explosion and fire originating from the negligence
of the crew are recoverable from underwriters.
The losses which are not included in the standard policy can be covered by having
special clauses and paying extra-premium.
Read More: What is Fire Insurance?
3. Man-of-War
This is die vessel which is authorized by nations for the purpose of defense or attack
in the event of hostilities.
Any damage to the goods or ships arising out of collision against a man-of-war is
insurable.
4. Enemies
Tile ships belonging to the foe (enemy) may cause loss to the insured and is re-
underwritten by the marine policy.
This policy extends to all the persons of the enemy country and to their hostile acts
provided such acts form part of the enemy actions.
5. Pirates, Rovers, Thieves
The perils on account of pirates, rovers, and thieves were common in olden times, but
it has been reduced considerably these days.
These acts are generally committed for the pursuit of individual gain by the persons
beyond the jurisdiction of a state.
The term ‘thieves’ does not mean clandestine theft or a theft committed by anyone of
the crew or officers or passengers.
6. Jettison
Jettison means voluntary throwing away of the cargo or part of a vessel’s equipment
for the lightening or relieving the ship for common safety.
 Aim of the intentional throwing away of the goods or property is to relieve the
vessel from some imminent peril.
 Accidental falling of things does not constitute jettison.
 Own inherent-vice of cargo is also not included in the jettison.

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7. Barratry
Barratry includes every wrongful act willfully committed by the master or crew the
prejudice of the owner. The act of barratry must be committed without the knowledge
of the owner.
The theft, the setting fire to ship, fraudulent selling of vessel and cargo without the
connivance of the ship-owner are the various examples of the barratry. The insurer, if
barratry insured, is liable for losses arising out of barratry.
8. Restraints and Detainments
The preventions free use of a port by the government of the country is called
restraints. It may cause interruption and possible loss of voyages involving such ports
and sacrifice of cargo.
The term ‘detainments’ covers losses resulting from the detention of a vessel and its
cargo by blockage or possibly quarantine regulation or other interference by the police
power of a nation while a vessel is in port.
It does not cover losses which are the result merely of delay or interruption of the
voyage, or loss of market or some other remote result.
9. The Free of Capture and Seizure Clause (F.C. & S. Clause)
The policy generally covers war perils. But, to include perils of the sudden declaration
of war, the war clause or free of capture and seizure clause is added to relieve war
perils.
By deletion of this clause, the policy is automatically restored to its original condition
and adequate premiums are charged for the purpose.
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10. Explosion
The risk of the explosion has greatly increased. The explosion on board of a vessel
damaging hull or cargo or both could be constructed as a peril on the sea. An
explosion on shore might damage a ship or its cargo.
Marine cargo policies were amended to include the risk of explosions not clearly
caused by war perils. The explosion, in case of hull policies, ‘on shipboard or
elsewhere’ is covered in the amended “Inchmaree or Negligence clause”.
11. Strikes, Riots and Civil Commotion Clause
The marine insurance on cargo is extended to cover from warehouse to warehouse or
otherwise insures the goods on shore prior to shipment and after discharge; the danger
of underwriters being held liable for losses, resulting from the unlawful acts of strikers
from riots or civil commotions is materially enhanced.
The insurers are unwilling to assume liability for losses due to unlawful acts.
12. All Other Perils
The loss occurred by the salt water of the sea, action of worms on timber, cattle dying
due to wanting of fodder as a result of lengthy voyage constitute sea perils.
There may be other damages due to oil, sweat, heat, which are insured under other
perils.