mod 1-5

Question 1

what is maritime law

Answer 1

maritime law is the body of laws that regulate nautical matters such as matters pertaining to delivery delays, lost packages, cargo damage, and other disputes that may arise while shipping like damages to the ship, collision, accidents, and injury to the crew.
Maritime laws are greatly influenced by international customs and practices, which is very obvious due to the subject matter and field of this law.

Question 2

maritime law vs admiralty law

Answer 2

Maritime law means the legal rules and concepts relating to the business of carrying goods and passengers by water. On the contrary, admiralty law is considered a branch of jurisprudence that pertains to maritime matters of civil and criminal nature. Also, it envisages a court or a tribunal administering maritime law through its separate and peculiar procedures.

Broader Scope: Maritime law encompasses a wider range of legal issues related to the sea, including shipping, navigation, maritime trade, and marine insurance.
International Focus: Maritime law is primarily governed by international treaties and conventions, such as the United Nations Convention on the Law of the Sea (UNCLOS).
Key Areas: Maritime law covers topics such as the delimitation of territorial seas, the rights of coastal states, the freedom of navigation, and the laws governing ships and their crews.
Admiralty Law:

Narrower Focus: Admiralty law is a specific branch of maritime law that deals with legal disputes arising from maritime activities.
Domestic Laws: Admiralty law is typically governed by domestic laws and regulations.
Key Areas: Admiralty law covers topics such as maritime torts, maritime contracts, salvage, and maritime liens.

Question 3

Hstory of maritime law

Answer 3

Maritime law, a body of law governing nautical issues and private maritime disputes, has a rich and ancient history dating back to the early days of seafaring. Its roots can be traced to the ancient civilizations of the Mediterranean, particularly the Phoenicians, Greeks, and Romans.

Early Beginnings:

Rhodian Sea Laws: One of the earliest known maritime legal codes, the Rhodian Sea Laws, originated on the island of Rhodes around 900 BC. These laws governed seafaring trade and conduct in the Mediterranean, establishing principles such as the concept of general average (where all parties share in the losses and expenses incurred to save a ship and cargo).
Roman Maritime Law: Roman law incorporated elements of maritime law, including the Lex Rhodia de iactu, which codified the principles of general average.
Medieval Developments:

Consolat de Mar: In the 13th century, the Consolat de Mar, a comprehensive maritime code, was developed in Barcelona. It became influential throughout the Mediterranean and influenced the development of maritime law in other regions.
Rolls of Oléron: Another important early maritime code was the Rolls of Oléron, which originated in the 12th century. It was widely adopted in Europe and influenced the development of English maritime law.

Question 4

admiralty law

Answer 4

Admiralty” is a complex and comprehensive body of law. It has been defined in part as “the rules governing contract, tort, and workers’ compensation claims arising out of commerce on or over navigable water.”
The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 consolidates the laws relating to admiralty jurisdiction , legal proceedings in connection with vessels, their arrest, detention, sale and other matters connected therewith or incidental thereto. it repeals 5 old statutes and consolidates them

Question 5

UNCLOS?

Answer 5

The United Nations Convention on the Law of the Sea (UNCLOS) is a comprehensive international treaty that governs all aspects of ocean use, including territorial seas, exclusive economic zones (EEZs), continental shelves, high seas, and deep seabed resources. It was adopted in 1982 and entered into force in 1994.

Importance of UNCLOS:

Global Maritime Framework: UNCLOS provides a comprehensive legal framework for the use of the world’s oceans, addressing issues such as navigation, marine resources, environmental protection, and dispute settlement.
Stability and Security: UNCLOS promotes stability and security in the maritime domain by establishing clear rules and procedures for the use of the oceans.
Economic Development: UNCLOS provides opportunities for coastal states to develop their economies through the sustainable use of marine resources, such as fisheries and seabed minerals.
Environmental Protection: UNCLOS includes provisions for the protection of the marine environment, such as measures to prevent pollution and conserve marine biodiversity.
Dispute Settlement: UNCLOS establishes a mechanism for the peaceful settlement of maritime disputes, helping to prevent conflicts and promote cooperation among coastal states.

UNCLOS has been ratified by 168 countries and is legally binding on those states.

It’s considered one of the most widely ratified international treaties in history, reflecting its importance in regulating maritime affairs. While not all countries have ratified it, the treaty’s principles and norms are often considered customary international law, meaning they are binding on all states regardless of ratification

Question 6

Maritime zones

Answer 6

Baseline:
It is the low-water line along the coast as officially recognized by the coastal state.

Internal Waters:
Internal waters are waters on the landward side of the baseline from which the breadth of the territorial sea is measured.
Each coastal state has full sovereignty over its internal waters. No right of innocent

**Territorial SEA: **
seaward up to 12 nautical miles from baseline
coastal state has sovreignity and jurisdiction over the territorial sea - this right extends to the seabed subsoil and airspace
Coastal states rights are limited by innocent passage through territorial sea

EEZ= Exclusive Economic Zone
200NM from baseline
Coastal state rights: Sovereign rights for the purpose of exploring, exploiting, conserving and managing natural resources, whether living or nonliving, of the seabed and subsoil.
Rights to carry out activities like the production of energy from the water, currents and wind.
However, the coastal state cannot prohibit freedom of navigation of other parties

High Seas:
The ocean surface and the water column beyond the EEZ are referred to as the high seas.
It is considered as “the common heritage of all mankind” and is beyond any national jurisdiction.
States can conduct activities in these areas as long as they are for peaceful purposes, such as transit, marine science, and undersea exploration.

Question 7

admiralty law india and england

Answer 7

Admiralty jurisdiction refers to the legal authority of courts to hear and decide cases related to maritime matters. The development of admiralty jurisdiction in India and England has been influenced by historical, legal, and economic factors.

England
Early Development: Admiralty jurisdiction in England can be traced back to the medieval period. The High Court of Admiralty, established in the 14th century, was responsible for hearing cases related to maritime affairs.
Expansion: The jurisdiction of the Admiralty Court gradually expanded to include a wider range of maritime disputes, such as torts, contracts, and salvage.
Merger with Common Law Courts:In the 19th century, the Admiralty Court was merged with the common law courts, creating a unified system of justice for maritime matters.

India
Colonial Influence: The development of admiralty jurisdiction in India was heavily influenced by the British colonial period. The Indian High Courts, established during British rule, inherited the jurisdiction of the Admiralty Court.
Post-Independence: After India gained independence, the Admiralty jurisdiction of the High Courts continued to be exercised.
Specialized Courts: In recent years, India has established specialized maritime courts to handle maritime disputes more efficiently. These courts have jurisdiction over a wide range of maritime matters, including admiralty actions, maritime torts, and maritime contracts.
Key Similarities and Differences:

Historical Roots: Both England and India have a long history of admiralty jurisdiction, dating back to the medieval period.
Colonial Influence: The development of admiralty jurisdiction in India was significantly influenced by British colonial rule.
Specialized Courts: Both countries have established specialized maritime courts to handle maritime disputes.

Question 8

maritime collision

Answer 8

Side collisions – when a vessel is struck on the side by another vessel.
* Bow-on collisions – when two vessels strike each other head-on.
* Stern collisions – when one vessel runs into the back of another.
* Allisions – when a vessel strikes an object, such as a bridge.
To avoid vessel collisions, the International Maritime Organization has rules that govern waterway navigation.
CAUSES:
Equipment failure: Engine failure, loss of maneuvering capabilities, or other equipment malfunctions.
* Weather: Bad weather conditions such as fog, high winds, ice flows, and storms at sea.
* Human errors: This is the most common cause of maritime collisions and can include errors or carelessness by crewmembers or confusion about maritime traffic schemes.
* Infrastructure: Something out of position on land, such as a drawbridge dropping too early, between a ship and a stable or a floating structure like an offshore drilling platform or an ice berg or even a port.

Question 9

COLREG, 1972

Answer 9

The International Regulations for Preventing Collisions at Sea (COLREG), adopted in 1972, is a set of international rules designed to prevent collisions between ships at sea. It establishes a standardized system of navigation lights, shapes, sounds, and other signals that ships must use to indicate their presence and intentions to other vessels.

Why COLREG was Established:

1. Standardization: Prior to COLREG, there were a variety of different rules and customs governing navigation at sea, which could lead to confusion and misunderstandings. COLREG aimed to standardize these rules and create a common language for mariners.
2. Safety: The primary goal of COLREG is to prevent collisions at sea, which can result in loss of life, property damage, and environmental harm.
3. Efficiency: COLREG also helps to improve the efficiency of maritime operations by reducing the risk of delays and disruptions caused by collision

Major Points of COLREG:
Navigation Lights: COLREG specifies the types and colors of navigation lights that ships must use to indicate their presence and direction. These lights are designed to be easily seen at night and in low visibility conditions.
Shapes: Ships must also use shapes, such as cones and spheres, to indicate their presence and nature of their cargo.
Sounds: Ships must use sound signals to indicate their presence, intentions, and any dangers they may pose to other vessels.
Rules of the Road: COLREG establishes rules for the conduct of ships in various situations, such as when two ships are approaching each other head-on, when one ship is overtaking another, and when ships are crossing each other’s paths.
Distress Signals: COLREG specifies the distress signals that ships should use to indicate that they are in danger and require assistance.
Safe speed limit

Question 10

Seafearers rights?

Answer 10

the rights of seafarers is the International Labour Organization (ILO) Convention Concerning the Labour Convention of Seafarers, 1996

1. Fair labour conditions: Seafarers are entitled to fair wages, working hours, and living conditions.
2. Medical care: Seafarers have the right to adequate medical care, including emergency medical treatment and repatriation in case of illness or injury.
3. Accommodation: Seafarers are entitled to decent accommodation on board the ship.
4. Food and water: Seafarers are entitled to sufficient and wholesome food and water.
5. Rest periods: Seafarers are entitled to adequate rest periods, including shore leave.
6. Protection from abuse: Seafarers are protected from abuse, harassment, and discrimination.
7. Social security: Seafarers are entitled to social security benefits, such as pensions

under the MARITIME LABOUR CONVENTIONS=
Written contracts: Seafarers must have written employment agreements that clearly set out their terms and conditions of employment.
Seafarers’ Employment Agreement (SEA): The MLC 2006 requires all seafarers to have a SEA, which is a standard form of employment agreement

Enforcement: The MLC 2006 has a stronger enforcement mechanism, including port state control inspections and sanctions for non-compliance.

Question 12

Maritime Lien

Answer 12

Amaritime lien in respect of a particular ship, travels with that ship, irrespective of whether or not that ship changes ownership. Ultimately, it is the ship itself which owes obligations which may be breached.
- it is a charge on the ship
- travels with the ship unconditionally
- enforced by an action in rem against the ship not the owner
- providing security for various maritime claims and
- ensuring that maritime property is held accountable for services rendered or damages caused

Under the Admiralty Act, 2017.
* These claims are enforceable against the owner, demise charterer, manager, or operator of the vessel.

Question 13

Limitation of Liability

Answer 13

legal doctrine that limits the liability of shipowners and other maritime parties for losses or damages arising from maritime accidents. This limitation is designed to protect shipowners from excessive financial burdens and to encourage investment in shipping.

The sinking of the titanic was a wake-up call as there were many claims for loss of life and personal injuries, and loss of property and were tried in uk, usa and norway

Exceptions: There are certain exceptions to the limitation of liability, such as willful misconduct or gross negligence on the part of the shipowner or its employees.
International Conventions: The limitation of liability is governed by international conventions, such as the International Convention on Limitation of Liability for Maritime Claims, 1976 (LLMC 76).
* Limitation Fund: The Convention establishes a limitation fund, which is calculated based on the gross tonnage of the ship. This fund represents the maximum amount that a shipowner can be liable for in a single incident.
Types of Claims:The Convention covers a wide range of maritime claims, including:
1. Loss of life or personal injury
2. Loss of or damage to property
3. Environmental damage

Rights of Claimants: The Convention ensures that claimants have the right to pursue their claims against the shipowner, even if the shipowner’s liability is limited.
Dispute Resolution: The Convention provides for a mechanism for the settlement of disputes between shipowners and claimants.

Answer 14

Ports and Harbors
Definition: Ports and harbors are artificial structures or natural features along a coastline that provide safe anchorage and facilities for ships.
Regulations: Maritime law governs the construction, operation, and regulation of ports and harbors. This includes rules related to port charges, security, and environmental protection.
Port Authorities: Many countries have established port authorities or port authorities to oversee the management and operation of ports and harbors.

Pilotage
Definition: Pilotage is the service provided by a pilot to guide a ship into or out of a port or harbor.
Compulsory Pilotage: In many jurisdictions, pilotage is compulsory for certain types of ships or in specific areas. This means that ships must employ a licensed pilot to navigate in those waters.
Liability: Maritime law governs the liability of pilots and shipowners in case of accidents or damage caused during pilotage operations.

Wrecks
Definition: A wreck is a ship that has been abandoned or sunk.
Salvage: Maritime law addresses the rights and responsibilities of salvors who attempt to recover a wreck or its cargo.
Ownership: The ownership of a wreck can be a complex legal issue, often involving disputes between the original owner, the salvor, and the government.

Key Maritime Conventions:
United Nations Convention on the Law of the Sea (UNCLOS): This international treaty provides a comprehensive framework for the law of the sea, including provisions related to ports, harbors, and maritime navigation.
International Convention for the Safety of Life at Sea (SOLAS): SOLAS sets standards for the safety of ships, including requirements for port state control and the prevention of marine pollution.

Question 15

Enforcement of maritime claims

Answer 15

Enforcement of maritime claims refers to the legal processes involved in recovering debts or damages arising from maritime activities. This can include claims related to shipping contracts, charter parties, salvage operations, maritime torts, and other maritime disputes.

Key Aspects of Enforcement of Maritime Claims:

Jurisdiction: Maritime claims are typically heard in specialized maritime courts or admiralty courts. These courts have jurisdiction over a wide range of maritime disputes.
Maritime Liens: Maritime liens are security interests that attach to a ship or its cargo to secure payment of debts arising from maritime activities. These liens can be enforced through judicial proceedings.
Arrest of Ships: In certain cases, it may be possible to arrest a ship to secure payment of a debt or claim. This is known as the maritime arrest procedure.
Sale of Ship: If a ship is arrested and the owner fails to satisfy the judgment, the court may order the sale of the ship to satisfy the debt.
Insurance: Maritime insurance can provide coverage for various types of maritime claims. If a shipowner or cargo owner has insurance, they may be able to recover losses or damages through insurance claims

Question 16

Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017

Answer 16

Consolidation of Laws:
Efficiency:
International Standards: The Act aligns India’s maritime law with international standards, promoting harmonization and facilitating international trade

The Act applies to all maritime claims arising within Indian territorial waters, the contiguous zone, the exclusive economic zone, or the continental shelf. It covers a wide range of maritime disputes, including:

Maritime torts: Such as collisions, salvage, and marine pollution.
Maritime contracts: Including charter parties, bills of lading, and salvage contracts.
Maritime liens: Security interests that attach to a ship or its cargo to secure payment of debts arising from maritime activities.
Other maritime claims, Alternative Dispute Resolution

Question 17

Contracts of Affreightment

Answer 17

Contracts of Affreightment in maritime law are agreements between a ship owner (shipowner) and a cargo owner (shipper) for the carriage of goods by sea. this includes the freight rate, loading and unloading port, Cargo Description, liability etc

here are two main types of contracts of affreightment:

Voyage Charterparty: In a voyage charterparty, the shipowner agrees to carry a specific cargo between two designated ports for a fixed freight rate. The ship owner bears the risk of loss or damage to the cargo during the voyage.

Time Charterparty:, the shipowner agrees to lease the entire ship to the charterer for a specified period of time. The charterer is responsible for loading and discharging the cargo, and the shipowner is responsible for operating the ship. The freight rate is typically calculated based on the daily hire rate of the ship.

Question 18

bill of lading parties and functions and detauls included

Answer 18

shipper- supplies the goods= aka seller.
carrier= party the moves the cargo aka shipping company
consignee= party designated to recieve the shipment = buyer

Functions:
1. Evidence of contract of carriage,
2, reciept of goods- basically acknowledges that carrier has recieved the freght
3, document of legal title to goods = , which permits the sale of goods in transit and availing financial credit

details in bill of lading
party details, cargo description, cargo weight, package count, terms of payment, port of loading, port of discharge,

Question 19

what is the process of bill lading

Answer 19

1. An importer (buyer) and exporter (seller/shipper) enters into a sales contract, for which the importer issues a letter of credit as a guarantee for payment.
2. exporter wants to ship consignment- reserves space on the vessel and the carrier tells the date and time of delivery of goods to exporter
3. once goods are delivered- the person in charge of the chip hands over reciept called “mates reciept” to Port Trust Authority. its a temporary reciept issues to show that goods are loaded
4. exporter makes payment of port dues, to collect the Mates Reciept from port authority
5. Mates Reciept needs to be handed over to the carrier to get the bill of lading
6. the carriers agent will check the detaisl provided in the reciept, at loading, and frieght will be calculated accordingly and bill of lading will be prepared in accordance w the mates reciept which is signed by shipmaster
7. Thereafter the shipper has the option to directly dispatch the bill of lading
   to the consignee or through the bank (in case of import/export)

It must be noted that the** actual negotiable bill of lading is made in three
originals, each of them is signed by the master.** Out of which one is kept by
the consignor of the goods, one by the shipmaster and the last one is
forwarded to the consignee, who has to surrender the same, to get the
delivery of the goods. On receiving the goods, the other two bills become
null and void

Question 20

 the Hague-Visby Rules
 The Hamburg Rules
 The Rotterdam Rules

Answer 20

Hague-Visby Rules (1968)
Scope: Primarily applicable to traditional bulk cargo shipments.
Liability: Increased the liability of shipowners compared to the original Hague Rules.
Shipper’s Declaration: Introduced the concept of a shipper’s declaration of value.
Limitation of Liability: Set limits on the liability of shipowners. only discusses contracts evidenced by bill of lading

Hamburg Rules (1978)
Scope: Expanded to cover containerized cargo and other modern forms of shipping, and contracts of carriage by sea
Seaworthiness: Placed a stricter duty on shipowners to ensure seaworthiness.
Cargo Interests: Extended protection to cargo interests beyond the shipper.
Time Bar: Introduced a time bar for bringing claims against shipowners.

Rotterdam Rules (2008)
Scope: Further expanded to cover all forms of sea carriage, including multimodal transport.
**Electronic Bills of Lading: **Recognized the use of electronic bills of lading.
Alternative Dispute Resolution: Encouraged the use of alternative dispute resolution mechanisms.
Seaworthiness: Reinforced the duty of shipowners to ensure seaworthiness.

Key Differences:

Scope: The Rotterdam Rules have the broadest scope, covering all forms of sea carriage.
Seaworthiness: The Rotterdam Rules place an even stricter duty on shipowners to ensure seaworthiness.
Electronic Bills of Lading: Only the Rotterdam Rules explicitly recognize the use of electronic bills of lading.
Alternative Dispute Resolution: The Rotterdam Rules encourage the use of alternative dispute resolution, while the Hague-Visby and Hamburg Rules do not explicitly address this.’

In summary, while all three sets of rules aim to govern the carriage of goods by sea, the Rotterdam Rules represent the most modern and comprehensive framework. They build upon the provisions of the Hague-Visby and Hamburg Rules, offering greater protection to cargo interests and adapting to the evolving landscape of international trade

Question 21

6 principles of marine insurance

Answer 21

Introduction to Marine Insurance

Marine insurance is a contract in which the insurer agrees to indemnify the insured against loss or damage to ships, cargo, or freight caused by maritime perils. It is one of the oldest forms of insurance, designed to manage risks associated with sea transport. The policy covers various risks, including natural disasters, collisions, piracy, and human errors during the voyage.

Principles of Marine Insurance

1. Utmost Good Faith (Uberrimae Fidei): Both parties must disclose all material facts honestly.
2. Insurable Interest: The insured must have a financial interest in the subject matter of the insurance.
3. Indemnity: The insurer compensates the insured for actual losses, ensuring no profit is made.
4. Subrogation: After compensating the insured, the insurer can recover the loss from third parties responsible.
5. Proximate Cause: The insurer is liable only for losses caused directly by insured perils.
6. Contribution: If multiple policies cover the same risk, insurers share the liability proportionately.
7. Loss Minimization: The insured must take reasonable steps to minimize loss after an incident.

This ensures fairness and efficient risk management in maritime operations.

Question 22

Warranties in Marine Insurance

Answer 22

• Warranties are fundamental terms or promises in a marine insurance contract, the breach of which can void the insurer’s liability,
• Express warranties under section 37 of Marine Insurance Act,
• Implied Warranties
  These are not written but are presumed to exist, such as:
  Seaworthiness Warranty: The ship must be fit for the voyage at the commencement of the journey.
  **Legality Warranty: **The voyage must not involve illegal activities.
  No Deviation Warranty: The ship must follow the agreed route unless deviation is reasonable (e.g., to save lives or property).

BREACH of warranty when excused:
1. Change in Circumstances
If the circumstances under which the warranty was made cease to exist, and the warranty no longer has relevance, its breach may be excused.
Example: A warranty requiring the use of a particular route becomes irrelevant if that route is blocked due to unforeseen events.

2. Implied Waiver by the Insurer
   If the insurer accepts the risk or premium after being aware of the breach, the breach is considered waived.
3. Reasonable Justification for Non-Compliance
4. Modification by Agreement
5. Perils Covered Occurring Independently or due to acts of third parties

Question 23

Voyage in Marine Insurance

Answer 23

A voyage policy is defined by s 25 as one where the subject-matter is insured ‘at and from’ or ‘from’ one place to another, or others. It is to be noted that s 25 is of general application, and, therefore, a voyage policy may be effected upon ship, goods or freight

. Time polices are more straightforward in the sense that
there can be little doubt as to when a policy commences and terminates: as time and date are specifically set out, there can be no uncertainty or confusion as to the precise moment when the policy begins and ends.

FromWhen a ship is insured ‘from’ a particular place, ‘the risk does not attach until the ship starts on the voyage insured’ from that particular placeand must “start” on the “voyage insured”. if a ship departs from a different port than the named port or sails for a different destination- risk doesnt attach

At and From
- Where a ship is insured “at and from” a particular place,
and she is at that place in good safety when the contract is concluded, the risk attaches immediately’.

BUT But a ship well may be ‘at’ a particular place for a purpose other than for the insured voyage. If, for example, she is at the named port for another voyage or
for a purpose (for example, repairs) which is unrelated to the insured voyage, it would be difficult to argue that the policy attaches the moment she arrived at that port.

CASE:
** Lambert v Liddiard (house of lords)**= It is submitted that the keys words here are ‘for the voyage’, meaning the insured voyage. For the risk to attach, the ship must be at the named port either for or preparing for the insured voyage

Haughton v Empire Marine Insurance Co,35 for example, the vessel was damaged by coming into contact with an anchor after entering the harbour and whilst passing over a shoal up to her place of discharge. It was held that the policy attached as soon as the vessel arrived within the port named.

Question 24

Causation of Maritime Peril

Answer 24

This refers to the relationship between the loss and the peril insured against in a marine insurance policy. For a claim to be valid, the loss must result from a covered peril and be its proximate cause.
INCLUDING :
Perils of the sea (e.g., storms, waves, collisions).
Fire, piracy, theft, or barratry (fraudulent actions by the crew).
War, capture, or detainment by hostile forces.

Proximate Cause- The insurer compensates only if the proximate cause is an insured peril.
Example: If a storm (covered peril) damages cargo, but negligence during unloading (excluded peril) worsens the damage, only the storm-related damage is covered.

Excluded Perils
Perils specifically excluded by the policy, such as ordinary wear and tear or inherent vice (defects in the cargo itself).

Question 25

TOWAGE:

Answer 25

• involves the utilization of one vessel to expedite the voyage of another, primarily aimed at accelerating its progress.
• ordinary and extraordinary towage. Ordinary towage pertains to vessels without damage or injury, where the tug receives a standard reward. In contrast, extraordinary towage involves disabled vessels and may necessitate towing to ports or places of safety. This distinction, elucidated in cases like Maritime Towage v. Seafaring Shipping (1985), delineates the scope and remuneration structure of towage contracts.

towage contracts must be distinguished from salvage contracts. While towage aims to expedite vessel voyages under non-perilous conditions, salvage contracts are invoked during imminent peril, with remuneration contingent on success.

TYPES of towage in most cases:
1. Deep sea towage
2. coastal and river towage
3. harbour towage

a) Manoeuvring towage: This is the service performed by a tug to a vessel to enter or leave a port, or to manoeuvre in it; or to cross a channel or a passage which, although it has its own propulsion, requires this support for safety reasons. Normally in this type of tow, the towed party maintains control and
direction of the manoeuvre
b) Transport towing: This is the service performed by a tugboat to tow, push or even pull (tied to the side of the vessel) to move the vessel by water from one place to another. In this type of towing, it is normally the tug who maintains control and direction of the manoeuvre.

Jai Prakash v. M.V. Sea Bird (2019), where the Bombay High Court affirmed its jurisdiction over towage claims arising from services rendered outside Indian territorial waters.

Question 26

Implied obligations in towage

Answer 26

Towage in Maritime Law

Towage refers to the service of towing a vessel, typically provided by a tugboat, to assist a ship in navigation, docking, or passing through confined waters. It is a service, not a salvage operation, unless extraordinary risks are involved. Towage agreements are usually based on contracts that govern the obligations of the tugowner and the tow.

Principle of Towage

Towage is founded on mutual benefit and assistance, where the tug provides power and control, while the tow retains its operational responsibilities (e.g., navigation). The principle assumes that the relationship is one of contract, not rescue, as towage does not involve saving a vessel from imminent danger. The purpose is efficient transport or assistance in maneuvering.

Implied Obligations in Towage

In the absence of specific contractual terms, certain implied obligations are recognized in towage agreements. These obligations ensure fairness and safety in the relationship between the tug and tow:

Obligations of the Tugowner
1. Provide a Seaworthy Tug
- The tug must be fit for the intended towage operation, including sufficient power, a competent crew, and necessary equipment.
2. Exercise Reasonable Care and Skill
- The tugowner must perform the service diligently and safely, avoiding unnecessary risks to the tow.
3. Avoid Deviation
- The tug must not deviate from the agreed route unless necessary for safety or justified by circumstances.

Obligations of the Tow
1. Provide a Seaworthy Tow
- The vessel being towed must be in a condition suitable for towage, with proper rigging and equipment.
2. Avoid Hindrance to Towage
- The crew of the tow must not interfere with or endanger the operation.
3. Assist with Maneuvering
- The tow may be expected to assist in navigation and provide signals if necessary.

Question 27

towage contract

Answer 27

Key Clauses in Towage Contracts
A) Personal elements
a) Owner of the tugboat (tugowner)
Liability and Indemnity: Specifies responsibilities for damage to the tow, the tug, or third parties.
Performance Standards: Outlines the tug’s duty to perform the towage safely and effectively.
Force Majeure: Excuses liability for uncontrollable events like severe weather.
Insurance Requirements: Ensures both parties have adequate insurance coverage.
FEE: remuneration for towage

Question 28

4 types of marine insurance

Answer 28

1. Cargo insurance: The word cargo refers to goods and merchandise which are in transit by
sea, road, rail or air. While in transit, there is risk of goods (raw materials, finished goods,
equipment’s, wares) being damaged and thus the need for marine cargo insurance to indemnify the shippers against the financial loss caused due to damage to the cargo.

2. Hull marine insurance:In this type of marine insurance, the subject matter is the vessel and
its equipment. The insurer compensates the insured in case the latter suffers financial loss due to damage or destruction of the vessel or its equipment. The policy covers risk caused due to fire, collision,
sinking, overturning, crew negligence, earthquake, floods, piracy and violent thefts. It does not cover risks due to radioactive damage, war, terrorist’s activities, deliberate damage and insolvency of the ship owner.

3. Freight insurance:It provides protection to vessel owner in case of non-payment of freight
charges due to loss of the cargo. The freight charges are paid to ship owners for transporting
the goods and merchandise safely. In case of payment of freight charges on delivery, the vessel
owner faces the risk in the event cargo is damaged. Thus, here the vessel owner has insurable
interest and purchases freight insurance to cover the risk. It is done on a time basis, certain
freight amount of freight is insured for a 12 month period.

4. Liability insurance: It is an Insurance policy provided to the insured to cover his liabilities
against the third-party contingent to marine accidents or adventures. It will cover accidental
loss of property of the third person as well as the fatal or non-fatal injury to the third party. It can be of two forms:

Question 29

voyage, time mixed and unvalued policy

Answer 29

1. Voyage policy: It refers to policy issued for a specific passage from departure location to the
destination location. It is applicable where subject matter is the cargo. Here, the risk arises
when the ship leaves the departure port and covers the cargo even when it is located at
intermediate places. Ex. A voyage policy from Bombay port to Hong Kong port.
2. Time policy:As the name implies, the subject matter is covered for a specific period of time which is usually one year. In the case where time has to be extended more than one year, a
Continuation clause is to be added in the contract. It is applicable in case of hull insurance where the vessel is insured while it is navigating or it is being constructed. The vessel can follow any course it wants. They are standard clauses with respect to freight and premium
which are added on to this policy. Ex. A time policy from 1st Jan, 2016 to 1st Jan,2017 .
3. Mixed policy: It is hybrid of Voyage and Time policy where the insurance policy covers risk
during a particular voyage for a specified time period. It is more applicable in case of cargos.
4. Unvalued policy: It refers to that policy where the value of the subject matter is not
mentioned in the contract. The compensation is paid after ascertaining the value of the loss,
where the method to determine the loss is already pre decided and mentioned in the contract.
The value so determined after loss is known as Insurable value or valuable. This policy is also
known as open policy.

5. Valued policy: It is reverse of the unvalued policy, here the worth of the subject matter is
   ascertained and thus the value of loss to be indemnified is pre decided between the insured and
   the insurer while making the contract and it does not change. The value here is refer as insured
   value or agreed value and it may not be the actual value to be indemnified.

Question 30

INSURABLE INTEREST

Answer 30

-Requirement of Insurable Interest (Section 7)
The insured must have an insurable interest in the subject matter at the time of the loss.

It prevents insurance fraud by ensuring that you only purchase insurance for property/assets in which you have a financial stake.

It provides an incentive to take care of your insured property since it directly correlates to your financial well-being.

Your entitlement to compensation is ensured if you suffer a loss/damage (subject to policy terms) to the insured property since you have a financial stake in it.