Insurance Flashcards
What is NOA
Notice of abandonment.
The insured cannot claim for a total loss and keep the subject matter.
If the insured suffers a CTL and elects to abandon their property they must serve a NOA on the underwriters, otherwise the loss is treated as a partial loss.
What are the types of losses
ATL - Actual total loss - the subject matter is lost or destroyed so that it ceases to be a thing of the kind insured.
CTL - Constructive total loss - the subject is reasonably abandon on account of its ATL being unavoidable or it cannot be preserved without an expenditure greater than its actual value
What is particular average
Average generally indicates partial loss. Particular average is when an accident occurs against an insurable item and is not regarded as general average. The loss is borne directly by the owner.
What is general average?
A loss that is shared by a number of interested parties. EG, A vessel is forced to jettison cargo to maintain stability during an unavoidable storm.
There is a GA when and only when an extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety. It must involve
1. A sacrifice
2. Be extraordinary
3. intentional
4. Reasonable
5. Made for common safety
6. Purpose of preserving property from peril
What is noting protest?
A solemn declaration under oath by the master that the conditions beyond his/her control have or may have conceivably caused damaged to ship or cargo, or caused him/her to take action which may give rise to owner liability to a third party.
Made before a notary and should be made as soon as possible upon entering port
How would you go about noting protest?
Take official logbook, deck/engine LB as appropriate and all relevant info surrounding event to be protested. Go to an authority registered to take sworn oaths along with one or more witnesses from crew.
Make a sworn statement.
Obtain at least 3 certified copies, send two to ship owner and keep one as ships record. Pay the fee and get receipt.
Also prudent to seek advice from company and P&I club ashore
What is a letter of protest?
A letter of protest is the documentary record of protest at some action which is prejudicial to the legal and commercial interests of the ship.
Purpose to protect owners interests by recording that a particular situation was brought to the attention of the other party and the time and date.
EG Loading/discharge rate being too slow, berth/fender arrangements inadequate
