This document discusses the important conditions and clauses found in marine insurance policies. It explains that there are generally three main types of clauses: hull clauses, cargo clauses, and freight clauses. Hull clauses cover losses related to vessels, cargo clauses define the scope of cargo insurance, and freight clauses cover losses of freight revenue. Some key clauses discussed include assignment clauses, "at and from" clauses, deviation clauses, sue and labor clauses, and various other clauses relating to specific risks or terms of the policy.

1. Important Conditions in Marine
Policy
Prof. Isha Jaiswal

2. Introduction
A marine insurance is entirely based on conditions. To
make the standard policy suitable for the different
types of contracts some appropriate suitable
conditions are added to the policy. The conditions are
inserted in the policy in the form of clauses. A marine
insurance policy may have a number of clauses.
These clauses may be general for all types of policies,
or may be special to cover certain agreed points. A
policy should cover all types of things so that it may
avoid misunderstanding or avoid disputes at a later
stage.

3. Conditions/Clauses in a Marine Policy
There are mainly three types of clauses in marine
policy:
1. Hull Clauses
2. Cargo Clauses
3. Freight clauses

4. Hull Clauses
These clauses are especially framed with the insurance
on vessels and are inserted in hull policies. These
framed clauses may be pertaining losses caused from
the events such as collision, standing, general average
etc.

5. Cargo Clauses
These clauses are used in the insurance of goods or
subject matter and they are incorporated in cargo
policies. These clauses give the description of the
nature, extent and the scope of the cargo insurance.
They define the precise conditions and restrictions or
constraints. Some additional marine perils against
which cover may be sought or which may be
excluded from the policies are inserted through
special clauses.

6. Freight clauses
The clauses are framed with reference to the loss of
freight due to perils which may be insured for a
period for a voyage.

7. Other Conditions/Clauses in a Marine
Policy1. Assignment Clause
2. ‘At and From’ Clause
3. Deviation or Change of Voyage
4. Inchmaree Clause
5. Sue and Labor Clause
6. Memorandum Clause
7. Perils of the Sea clause
8. All Risks Clause
9. FCS Clause
10. Bottamary Bond
11. Lost or Not Lost clause
12. Warehouse to Warehouse Clause
13. Touch and Stay Clause
14. Running Down Clause
15. Reinsurance Clause
16. Continuation Clause
17. Warier Clause
18. FGA Clause
19. FPA Clause
20. Repodentia Bond

8. Assignment Clause
This clause makes it clear that the marine policy is
assignable unless it contains terms specially prohibiting
assignment and may be assigned before or after a loss.
The assignee who has acquired the beneficial interest in
the policy is entitled to sue thereon in his own name, and
the dependent is entitled to sue thereon in his own name,
and the dependent is entitled to make any defense arising
out of the contract which have been entitled to make if
the action had been brought in the name of the person by
or on behalf of whom the policy was effected.

9. ‘At and From’ Clause
This clause refers to the time when risk commences.
According to this clause the risk coverage starts when
the ship is lying at the port of its departure and from
the time it leaves the port. If insurance policy states
the words, ‘at and from Madras’, it means the risk is
covered when the ship is at Madras port and also
when it leaves this port. This clause applies to Hull
and Freight Insurance.

10. Deviation or Change of Voyage
The details of the voyage are mentioned in the policy.
The ports of departure and arrival are mentioned in
the policy. The route to be followed by the ship is
also given. In case of any deviation, the insurer will
be relieved of his liability. If the ship changes its
original route and follows same route later on, it will
be taken as deviation. The insurer will not be liable to
indemnify the loss if the original route is changed.

11. Inchmaree clause
Under this clause any loss caused by the negligence of
the master or a crew member is also covered. The
damage caused to the cargo in loading and unloading
operations is also recoverable. This clause was
inserted after a famous case involving a ship named
‘Inchmare’ in 1857. This clause also covers the loss
by explosives or latent defect in the machinery or the
hull.

12. Sue and Labor Clause
This clause enables the insured and the insurer in trying
to save the subject- matter of insurance from any type
of loss. If the insured spends some money in an
attempt to save the goods from an impending loss, he
can recover this amount from the insurer. The act of
saving the subject-matter on minimizing loss does not
amount to deviation and the contract will not be void.

13. Memorandum Clause
Sometimes perishable goods are the subject-matter of
insurance. The memorandum clause is used to save
the insurer from paying small losses of perishable
goods. Under this clause the insurer is not liable for
partial losses. In certain commodities this loss is
allowed up to 50%. However, if there is a general
loss, the insurer will be liable to pay the loss.

14. Perils of the Sea Clause
This clause is applicable only to fortuitous accidents or
casualties of the seas. It does not include the ordinary
action of the winds or waves.

15. All Risks Clause
This clause provides that the insurance is against all
risks of loss or damage to the subject matter, insured
and that the claims are payable irrespective of
percentage.

16. FCS Clause
This clause is related to free of capture and attack. This
clause is generally inserted in times of war, it means
that the insurers will not be liable for loss or claim
arising from attack of ship as a price of war. In times
of war this clause is inserted unless the insured pays
the underwriter additional premium for war risks.

17. Bottomary Bond
For certain urgent expenses such as repairing of
the ship some loan is to be gained from some
resource. This loan is given in the form of a bond
with an understanding that it will be repaid
within a period of certain number of days after
the arrival of the ship at the destination.

18. Lost or Not Lost Clause
This clause was commonly used in the days before the
internet communication was not available. The
insured takes a marine policy to cover the risk of
some subject matter. Suppose the goods is send by
sea-route not received by the party then that party
contacts and intimates the non-receipt of the goods.
The sender does not know what has happened to the
goods (whether lost or not). Under such
circumstances this clause provides the cover for the
loss of the goods.

19. Warehouse to Warehouse Clause
This clause covers the risk from the warehouse of the
shipper or consignor to the warehouse at the
destination. The risk of taking goods to the port from
sender’s warehouse to the arrival of goods at the
receiver’s warehouse is covered. This clause saves
the shipper from lot of troubles and he is sure of the
safe arrival of the subject matter not only at the port
but also at the warehouse.

20. Touch and Stay Clause
The ship should go and stay only at those ports which
are mentioned in the policy. In case the ports are not
mentioned, then the ship should take the usual route
and stay at the port coming on that route only. If the
ship goes to any other port, it will amount to
deviation. The calling at ports must be for justifiable
reasons.

21. Running down Clause
This clause is also called as collision clause and is
included in hull policies. This clause covers the risk
arising out of collision between two ships. The
insurer is liable to pay compensation to the owner of
the damaged ship.

22. Reinsurance Clause
If the policy has been previously taken and if after sometimes
the policy is to be reinsured then the reinsurance clause as
under is simply added on the original policy.
“Being a reinsurance and subject to the same clauses and
conditions as the original policy, and to pay as may be paid
thereon.”
The reinsurer is liable only to original insurer. As insured has no
direct bearing with the reinsurer, he cannot approach for the
settlement of the claim to the reinsurer.

23. Continuation Clause
This clause authorizes the vessel to continue and
complete her voyage even if the time of the policy
has expired. This clause is used in a time policy. The
insured has to give prior notice for this and deposit
a monthly prorate premium.

24. Warier Clause
The clause states that any act of the insured or the
insurer to protect, recover or preserve the subject
matter of insurance shall not be taken to mean that
the insured wants to forgo the compensation, nor will
it mean that the insurer accepts the act as rejection
of the policy.

25. FGA Clause
Foreign General Average clause means that the
arrangement in case of a general average claims,
which may arise under the policy, the average
settlement made in a foreign country will be
adopted as the basis for settlement.

26. F.P.A. and F.A.A. Clause
The F.P.A. (Free of Particular Average) clause relieves
the insurer from particular average liability. The
F.A.A. ( free of all average) clause relieves the
insurer from liability arising from both particular
average and general average.

27. Respondentia Bond
Similar to bottomary bond, this respondentia bond also
represents a monetary loan borrowed by the master of
a ship to meet certain urgent expenses. The loan is
raised on the security of the cargo only. This loan is
to be repaid within a certain number of days after the
arrival of the cargo at the destination as specified in
the respondentia bond. If the cargo at the destination
as specified in the respondia bond. If the cargo is lost
on its way, the lender loses his money.