4. Definition
• Peril of the Sea — refers to extraordinary
forces of nature that maritime ventures
might encounter in the course of a voyage.
Some examples of these perils include
stranding, sinking, collision, heavy wave
action, and high winds.
5. Perils of Sea In Marine Insurance
• Perils of the sea in marine insurance include
extraordinary forces of nature faced by
maritime ventures during the voyage.
Broadly speaking, 'peril of the sea' covers
damages to ship during the voyage by the
Act of God.
6. Perils of Sea Losses Covered In Insurance
Covered
• Foundering at Sea
• Ship Wreckage
• Stranding
• Collision
Not Covered
• Wear & Tear
• Breakage of Goods
• Springing a leak
• Inherent Vice
• Death of animals onboard
due to natural perils
• Loss by rats
7. 12 Marine Perils in Marine Insurance
1. Perils of Sea
2. Fire
3. Man-of-War
4. Enemies
5. Pirates, Rovers, Thieves
6. Jettison
7. Barratry
8. Restraints and Detainments
9. The Free of Capture and Seizure Clause (F.C. & S. Clause)
10. Explosion
11. Strikes, Riots, and Civil Commotion Clause
12. All Other Perils
8. 1. Perils of Sea
• Under the perils of the sea, the
ordinary action of the winds and
waves, ordinary wear and tear to
the vessel, the inherent risk of
the cargo is not included.
• The underwriter may be liable
for losses caused by Perils of the
sea; he is not necessarily liable
for perils on the sea.
• Document required for marine
insurance.
9. 2. Fire
• In olden times fire was the biggest
maritime peril, but recently it has
been under control to a greater
extent. Damage resulting from fire
and smoke is included under fire-
peril.
• The water used for extinguishing a
fire may cause damage to the
insured goods.
• So, this peril is also insurable. The
damage due to spontaneous
combustion may be maritime peril
and be insured against.
10. 3. Man-of-War
• This is the vessel that is
authorized by nations
for the purpose of
defense or attack in the
event of hostilities.
11. 4. Enemies
• Tile ships belonging to
the foe (enemy) may
cause loss to the insured
and is re-underwritten
by the marine policy.
12. 5. Pirates, Rovers, Thieves
• The perils on account of
pirates, rovers, and
thieves were common in
olden times, but they
have been reduced
considerably.
13. 6. Jettison
• Jettison means voluntary
throwing away of the
cargo or part of vessel’s
equipment for lightning
or relieving the ship for
the common safety.
14. 10. Explosion
• The risk of the explosion
has greatly increased. The
explosion on board a vessel
damaging hull or cargo or
both could be constructed
as peril on the sea, and an
explosion onshore might
damage a ship or its cargo.
15. Conclusion
• This attempt to revise and to come up with a new
definition to the term ‘peril of the sea’ may be useful in
actually outlining the parameters of perils of the sea. In
order to ascertain what sort of perils fall under this most
commonly covered range of risk in marine insurance, the
conclusive meaning of the term is deemed pertinent. In
defining ‘perils of the sea’ and ascertaining whether a
particular peril qualify as such, it is extremely important
to always bear in mind the two conditions proposed by
Ivamy above; firstly, that such peril must be accidental
and fortuitous and secondly, that it must be ‘of the sea.
