Marine Insurance Law (LAWS0240)

The module involves the study and appraisal of the English law of marine insurance.

Marine Insurance Law represents the development of centuries of commercial practice and common law and is the foundation for the law governing all insurance transactions. The law is constantly evolving to meet new technologies and economic circumstances and remains influential in the development of general insurance law in England and other countries. This involves the consideration, amongst other things, of (a) the definition and requirements of a valid marine insurance contract, (b) the conclusion of the contract and the duty of utmost good faith (duty of fair presentation), (c) the categories of marine insurance contract, (d) the parties and their agents, (e) the principle of indemnity, (f) coverage focussing on marine and war risks, (g) the terms of the contract, (h) the measure of indemnity, and (i) the principles of subrogation and contribution.

The law of marine insurance concerns the insurance of property, financial interests and liabilities arising by exposure to maritime and other perils and principally relates to the insurance of ships, cargoes and energy interests. The module involves a close reading of the Marine Insurance Act 1906 and also involves consideration of the extensive case law. The module also considers the Insurance Act 2015, which entered into force on 12 August 2016.

Module Syllabus

• The Contract of Marine Insurance and Insurable Interest
• Formation, Construction and Rectification of the Marine Insurance Contract
• Voyage and Time Policies
• Valued and Unvalued Policies
• Floating Policies and Open Covers
• Composite and Joint Policies
• The Duty of the Utmost Good Faith (Duty of Fair Presentation) – Part I
• The Duty of the Utmost Good Faith (Duty of Fair Presentation) – Part II
• The Broker in the Contract of Marine Insurance
• The Consideration for the Contract – Premium
• Assignment
• Express Warranties and Terms of the Policy
• Implied Warranties
• Marine Risks – Part I
• Marine Risks – Part II
• Causation and Excepted Perils
• War and Strike Risks
• Sue and Labour
• Measure of Indemnity: Partial and Particular Average Losses
• Measure of Indemnity and Actual Total Loss
• Measure of Indemnity and Constructive Total Loss
• Subrogation and Contribution
• Reinsurance, Mutual Insurance and Rights of Third Parties

Recommended Materials

• Marine Insurance Act 1906
• Insurance Act 2015

There are no required text books. However, the following text books are useful reference sources:

• Arnould’s Law of Marine Insurance and Average (19th ed., 2018)
• Rose, Marine Insurance: Law and Practice (2nd ed., 2012)
• Bennett, The Law of Marine Insurance (2nd ed., 2006)
• Gurses, Marine Insurance Law (2nd ed., 2016)

Preliminary Reading

Background Reading (optional):

• Arnould’s Law of Marine Insurance and Average (19th ed., 2018), chapters 1, 10 and 11
• Rose, Marine Insurance: Law and Practice (2nd ed., 2012), chapters 1, 2 and 3
• Bennett, The Law of Marine Insurance (2nd ed., 2006), chapter 1 and para. 3.02-3.64
• Gurses, Marine Insurance Law (2nd ed., 2016), chapter 1

Module reading lists and other module materials will be provided via online module pages, available at the beginning of term once students have enrolled.

Key information