Current Trends in Maritime Insurance

• Author: Viorica Puscaciu, Stephanie Odubo Ebiere
• Position: Professor, PhD, Danubius University of Galati, Faculty of Economic Sciences, Romania/Postgraduate student, Danubius University of Galati, Faculty of Economic Sciences, Romania
• Pages: 487-495

ISSN: 2067 – 9211 Miscellaneous

487

Current Trends in Maritime Insurance

Viorica Puscaciu1, Stephanie Odubo Ebiere2

Abstract: This paper portrays relevant information about different aspects in maritime insurance with its history and we also

emphasize on the principle of utmost goo d faith which is a very important principle that has to be noticed when making an

insurance contract. We also refer to different types of maritime insurance policies offered by maritime insurance companies,

as well as the P&I Club, together with their benefits. The different type of average and the maritime insurance Premium, and

also Express Warranties are other topics which our work deals with. This analysis is based on qualitative methods and is

addressed both to the specialist in this field and, also, to students and researchers which might be interested in. The aim of this

research is to bring into attention this important problem of insurance – in any situation of life and, especially, in this area of

the maritime activity. Our conclusion is that maritime insurance helps to spread risk and also makes provision for the share of

losses as seen in the function of general average and it also indemnifies the assured of their losses or damages accordingly.

Keywords: risks; good faith; confidence; principle; P&I Club

JEL Classification: F5; J59; R41

Motto:

“New-York is not the work of men, but of the insurances…”

Henry Ford

1 Introduction

The globalization of trade has greatly enhanced global shipping of goods from one geographical region

of the world to another. Thus, making shipping one of the efficient ways of transporting bulk goods

across sea bound regions and through inland water ways as well.

The process of moving goods from a place of origin to a destination via the sea involves a lot of risk

both for cargo owners, ship owners and the crew onboard. The occurrence of these maritime risk at sea

has called for the need to insure cargo, vessel and crew in order to minimize and possibly recover the

cost of losses or damages. Therefore, maritime insurance exists for this very purpose of providing a

coverage for all such risks so that the assured maybe able to recover from any possible risk insured

against during maritime venture.

This paper portrays relevant information about different aspects in maritime insurance with its history

and we also emphasize on the principle of utmost good faith which is a very important principle that has

to be observed when making an insurance contract and, according to the marine insurance Act, if the

utmost good faith be not observed by either party, the contract may be avoided by the other party.

1 Professor, PhD, Danubius University of Galati, Faculty o f Economic Sciences, Romania, Address: 3 Galati Blvd, Galati

800654, Romania. Tel.: +40372 361 102, fax: +40372 361 290, Corresponding author: viorica.puscaciu@univ-danubius.ro.

2 Postgraduate student, Danubius University of Galati, Faculty of Economic Sciences, Romania, Address: 3 Galati Blvd, Galati

800654, Romania. Tel.: +40372 361 102, fax: +40372 361 290.