CERTIFICATE OF PRACTICE BRANCH AN INTRODUCTION TO P13 MARINE AND AVIATION INSURANCE

OBJECTIVES: To provide an appreciation and understanding of marine and aviation insurance practices and the economic, geographic and national and international legal context in which the operate.

Knowledge rating WORLD GEOGRAPHY WITH PARTICULAR INSURANCE LEGAL PRINCIPLES REFERENCE TO TRADE Characteristics of utmost good faith, indemnity, insurable Relationship of world geography to marine and aviation interest, subrogation, contribution and proximate cause. 2 insurance. 1 Application of these principles to marine and aviation Climatic and physical features of the oceans, seas and insurance. 3 waterways. 2 Location of major ports and shipping routes. 2 Characteristics of the main types of cargo carrying vessel. 2 Characteristics of the marine form. 2 Suitability of routes for main types of vessel. 2 Types of policy issued. 1 Nature of major commodities carried by sea. 2 Distinction between valued and unvalued policies. 2 Nature of goods suitable for carriage by air. 1 Nature of ‘slip’ policies. 1 Characteristics of warranties used in marine insurance. 2 INTERNATIONAL TRADING PRACTICES Nature of hull and cargo clauses. 2 Nature of international trade. 1 Factors determining rating of marine risks. 2 Nature of the documentation involved in international trade. 1 Importance of the Marine Insurance Act 1906 in the Scope of international bonds and guarantees. 1 conduct of marine insurance. 2 Characteristics of payment processes in international trade. 2 Terms of the Marine Insurance Act 1906 relating to the contract, , insurable value, disclosure Nature of main forms of contracts of affreightment. 1 and representations, the policy, double insurance, Obligations and immunities of carriers under contracts of warranties, the voyage, assignment, the premium, loss affreightment. 2 and abandonment, partial losses, indemnity and insurers’ Amount to be insured as freight. 1 rights. 2 Specialist marine terminology from the Marine Insurance Act 1906. 2 NATIONAL AND INTERNATIONAL LAW RELATING TO INTERNATIONAL TRADE NATIONAL AND INTERNATIONAL LAW RELATING Nature of the liabilities of owners and operators of ships to the owners of goods, passengers and the public. 2 TO AVIATION Nature of the responsibilities of carriers of goods by road Characteristics of the development of aviation law. 1 and rail. 2 Role and functions of international organisations governing Limitations to the liabilities of carriers. 2 aviation. 2 Scope of international conventions and national legislation Nature of national legislation regulating the national relating to the carriage of goods by sea, road and rail. 2 aviation industry. 2 Scope of international conventions and national legislation relating to the liability of owners and operators of aircraft THE MARINE AND AVIATION INSURANCE and to offences committed on board aircraft. 2 MARKET Principles of the Warsaw Convention 1929. 2 The operation of the insurance market place. 1 Rights of passengers and cargo owners under the Warsaw Nature of the need for marine and aviation insurance. 1 Convention. 2 Development of the aviation insurance market. 1 Principles and terms of the Chicago Convention 1944. 2 Types of intermediary involved in marine and aviation insurance. 2 AVIATION INSURANCE Types of insurer involved in marine and aviation insurance. 2 Types of policy issued. 1 Procedures for placing marine and aviation risks with Nature of the hull and liability policy forms. 2 insurers. 2 Scope of the cover provided by aviation policies. 2 Characteristics and use of ‘slips’. 2 Nature of specific and general exclusions on aviation policies. 2 Nature of developments in the placing of insurances. 2 Nature of aviation clauses. 2 Nature of brokers’ responsibilities and rights relating to premium payments. 2 Factors determining rating of aviation risks. 2 Calculation of brokerage. 2 Nature of insurance for specialist aviation risks. 1 Role and functions of insurance market organisations. 2 Nature of insurance for space risks. 1 Use of surveyors and loss adjusters in claims handling. 1

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REINSURANCE Knowledge ratings Reasons for and benefits of reinsuring. 2 Each sub-topic has been designated a numerical knowledge rating as Specialist terminology. 1 follows: Features of the various methods of reinsurance including: 1 General background awareness necessary. —treaty. 2 2 Requires a knowledge of the major elements of procedures or concepts and their uses. —facultative. 2 3 Requires the ability to evaluate concepts, issues, policies and —pools. 1 procedures, together with an understanding of associated aspects Characteristics of proportional reinsurance treaties of these items and their application to various situations. including surplus and quota share. 2 Characteristics of non-proportional reinsurance treaties including excess of loss and excess of loss ratio. 2 Study materials Application of reinsurance to marine and aviation insurance. 2 The following list provides details of various publications which may assist with your studies. The primary text for this syllabus is shown in bold type. Periodicals and publications listed as additional reading will be of value in ensuring candidates keep up to date with developments and in providing a wider coverage of syllabus topics. The reference materials cited are authoritative, detailed works which should be used selectively as and when required.

Primary text Coursebook P13: An introduction to marine and aviation insurance. The Chartered Insurance Institute.

Additional reading Introduction to marine insurance. 2nd edition. Robert H Brown. London: Witherby, 1995

Reference material Aviation insurance: the law and practice of aviation insurance, including hovercraft and spacecraft insurance. 2nd edition. Rod D. Margo. London: Butterworths, 1989. Aviation insurance practice, law and reinsurance. 2nd edition. Adel Salah El Din. 1989. Marine insurance: law and policy. Donald O’May, Julian Hill (ed and co. author). London: Sweet and Maxwell, 1993. Chalmer’s Marine Insurance Act 1906. 10th edition. Sir Mackenzie D. Chalmers. London: Butterworths, 1993.

Periodicals The Journal. London: Chartered Insurance Institute. Six issues a year. Post Magazine. London: Timothy Benn Publishing. Weekly.

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