Marine Hull Underwriting and Claims IC 70 Practice Exam

Marine Hull Underwriting and Claims (IC 70) Practice Exam

Marine Hull Underwriting and Claims (IC 70) is a specialized area of insurance that deals with protecting ships, vessels, and their machinery against potential risks such as accidents, damage at sea, or losses during operations. Underwriting in this context means assessing the level of risk involved in insuring ships and determining the right coverage, while claims handling involves managing the process when damages or losses occur.

In simple terms, this certification helps professionals understand how insurance companies provide coverage for ships, how risks are evaluated before issuing a policy, and how claims are managed when incidents happen. It is crucial in the maritime industry, as it safeguards shipowners, businesses, and insurers from heavy financial losses due to accidents at sea.

Who should take the Exam?

• Marine Underwriters
• Claims Managers
• Insurance Advisors
• Risk Analysts
• Brokers specializing in marine insurance
• Legal Advisors in shipping/insurance
• Shipping company managers dealing with insurance

Skills Required

• Insurance principles
• Analytical and risk assessment skills
• Communication and negotiation skills
• Maritime operations

Knowledge Gained

• Fundamentals of marine hull insurance
• Principles of underwriting marine vessels
• Risk assessment and premium calculation
• Claims management process in marine insurance
• Legal frameworks related to marine claims

Course Outline

The Marine Hull Underwriting and Claims IC 70 Exam covers the following topics -

1. Introduction to Marine Hull and Types of Vessels

• Meaning and necessity of marine hull insurance
• Categories/types of vessels that can be insured (e.g., ocean-going vessels, coastal vessels, sundry hulls)
• Who can take out such insurance
• Classification of vessels

2. Marine Hull Principles and Types of Policies

• Underlying principles for granting hull insurance and policy construction
• Types of policies

3. Various Marine Hull Covers and Clauses

• Institute Time Clauses (Hulls) 1983: history, coverage, exclusions, deductibles, constructive total loss, Sue & Labour, collision liability, claims procedures, warranties, navigation clauses, continuation, termination, freight waiver, returns for lay-up/cancellation
• Institute Voyage Clauses
• Differences between ITC Hulls 1983 vs ITC Hulls 1995
• Navigation, classification, perils clauses; general average, salvage, radioactive contamination exclusion, clause rearrangement
• International Hull Clauses: conditions, claims provisions, limited cover, port risks, yacht clauses (features, liabilities, machinery damage extensions), Fishing Vessel Clauses, British vs American Institute Hull Clauses, Dutch Hull Form, tariff-drafted clauses

4. Ship Builders’ Risks Insurance

• Subject matter and commencement
• Delayed delivery, perils, insured value, exclusions (earthquakes, pollution hazard, faulty design), navigation, deductible, notice of claim
• Collation liability, protection & indemnity clause, exclusions, rating, deductible, premium payment

5. Marine Hull Underwriting and Rating

• Vessel-related risk aspects, technical and insurance-specific details
• Physical and moral hazards, vessel valuation, trading limits, deferred repairs, towage risks, declined risks
• Initial and renewal rating, deductible, premium payment, conditions for inland vessels, dredgers, fishing vessels, sailing vessels

6. Ship Classification Societies

• International Association of Classification Societies (IACS)
• Indian Register of Shipping (IRS)

7. Special Insurances

• Ship repairers’ liability insurance
• Charterers’ liability insurance
• Marine defense insurance
• Mortgagee’s interest insurance
• Port liabilities insurance and port package policies: prerequisites, coverage, indemnity, subrogation

8. Insurance of Oil and Gas Structures, SBM (Single Buoy Mooring)

• Oil & gas wells: exploration, production, risk types/losses
• Energy package policy: property damage, well control, third-party liability, rating
• SBM: meaning, components, operational risks, types of losses, insurance policy

9. War and Strikes Risks Insurance

• War risks time policy under Indian Government scheme: coverage and features
• Institute War… (likely committee/clause coverage)

10. Protection & Indemnity Clubs (P&I Clubs), Marine Hull Reinsurance

• P&I clubs: introduction and coverage aspects
• Facultative reinsurance arrangements for marine hull

11. Marine Insurance Associations & International Standards

• Key associations and frameworks
• Standards/Codes: ISM Code, ISPS Code, MARPOL

12. Introduction to Marine Hull Claims

• Fundamental principles: utmost good faith, warranties, insurable interest, indemnity, subrogation, contribution, proximate cause, concurrent causes, burden of proof, “without prejudice”
• Loss types: actual/constructive total loss, notice of abandonment, partial loss, expenses, particular charges, sue & labour charges, salvage, extra charges, unrepaired damage

13. Claims on Marine Hull Policies

• Types of losses and indemnity mechanisms for ship claims
• Claim process: notice to insurer, surveys, removable expenses, warranties, deductibles, temporary repairs, dry-docking, gas freeing, wages, fuel/stores, bottom treatment, agency commission, port/superintendence charges
• Claims across vessel types: ocean-going, sailing, fishing, inland; survey reports, casualty details, warranty commentary, finalization, reinsurance recovery

14. General Average and Salvage Claims

• Concepts: general average vs particular average, GA sacrifice, York–Antwerp Rules, GA expenditures, forms, differences with salvage, role of average adjuster, GA security and procedures, documents (letter of transfer, cash deposits, port of refuge expenses), salvage remuneration, Lloyd's Open Form, successive GA, contributory values, insurer liabilities, GA coverage via cargo policy, disbursements insurance

15. Collision Liabilities and Insurance of Freight Claims

• Collision liabilities: meaning, how liabilities arise, three fourths liability, single/cross liability, limitation, cargo owner positions, sister ship clause, demurrage
• Role of P&I Clubs, freight concepts: valued vs unvalued policies, freight claims, partial/total/constructive loss of freight