The document discusses a marine cargo insurance case study involving the shipment of 12,000 metric tons of fishmeal from Lima, Peru to Kathmandu, Nepal aboard the vessel Dragon Star. Key details provided include the insured value of $10.56 million, the ICC-A coverage requested with a $10,000 deductible, and vessel information showing it was a 5320 GRT bulk carrier built in 1974 and flagged in Panama. The document also reviews various ICC clauses covering risks and exclusions and discusses underwriting considerations involving interest, voyage, and conveyance risk analysis.

1. Marine Cargo Insurance & Shipping Sibesh Sen Tata AIG General Insurance Co Ltd.

2. Case Study 1 Agent : Johnny Begood Insured Name : 5 Roses Inc. Perfume Makers Cargo : 12,000 mt of grade A1 Fishmeal Packing : In bulk Voyage/Transit : Lima, Peru- Kathmandu Sailing date : 26.01.12 Conveyance : Vessel Dragon Star Value : USD 10,560,000/- (CIF +10%) Cover requested : ICC-A with $10,000 deductible

3. DRAGON STAR EX-NAME : ZIYA S TYPE : BULK CARRIER FLAG : PANAMA CLASS : PR BUILT : 1974 GRT : 5320 DWT : 11250 P&I : NOT KNOWN

4. UNDERWRITING WISDOM THE MORE YOU ASK, THE MORE YOU KNOW! THERE ARE NO STUPID QUESTIONS, ONLY STUPID ANSWERS! NEVER EVER ASSUME!

5. ICC Clauses-Risks Covered Loss / damage to the subject matter insured reasonably attributable to /caused by: 1. Fire or Explosion; 2. Vessel or craft being stranded, grounded, sunk or capsized. 3. Overturning or derailment of land conveyance; 4. Collision or contact of vessel craft or conveyance with any external object …. 5. Discharge of cargo at a port of distress; 6. General Average Sacrifice; 7. Jettison; 8. General Average and Salvage Charges 9. “Both to Blame” Clause 10. Washing overboard; 11. Earthquake., volcanic eruption or lightning. 12. Entry of sea, lake or river water into vessel, craft, hold, container 13. Total loss of any package lost overboard or dropped whilst loading/unloading…… 14. Any other risk not specifically excluded in the policy or the clauses Exclusion extra (Malacious Damage) under B and C “ Deliberate damage to or deliberate destruction of the subject matter insured or any part thereof by the wrongful act of any person or persons.” C L A U S E C C L A U S E B C L A U S E A

6. Clause 4 General Exclusions Clause Ordinary wear tear loss in weight, volume etc Willful misconduct of assured Insufficiency or unsuitability of packing or preparation of subject matter insured Inherent vice or nature Loss damage or expense caused by delay even though the delay is caused by a peril insured against Loss damage or expense arriving from insolvency or financial default of the owners or operators etc of the vessel; Loss damage or expense arising from the use of a weapon of war employing atomic or nuclear fission or fusion and or similar

7. UNDERWRITING WISDOM EACH AND EVERY CARGO – RISK IS A UNIQUE COMBINATION OF INDIVIDUAL RISK FACTORS

8. INTEREST / PACKAGING

9. VOYAGE Risk Analysis

10. CONVEYANCE Risk Analysis – I.V.C

11. Underwriting Philosophy UNDERSTAND EXPOSURE I nterest V oyage C onveyance EVALUATE CORRECT TERMS, CONDITIONS CALCULATE RATE

12. Risk Analysis – I.V.C Greater the exposure; Higher the Premium. If Bad, Bad, Bad no price is high enough PREMIUM GOOD BAD BAD C GOOD GOOD BAD B GOOD GOOD GOOD A CONVEYANCE VOYAGE INTEREST EXAMPLE

13. UNDERWRITING WISDOM UNDERWRITING IS: 90% SELECTION & 10% PRICING

14. Case Study 2 A Tale of Two Vessels

15. Case Study-2 A Tale of Two Vessels

16. CASE STUDY 3 Insured Name : L&T, India Cargo : Machinery Voyage : Hazira, India to Saudi Arabia Sailing date : 20.07.2004 Conveyance : Tug Husaain Sagar Value : USD 16,000,000/- (CIF +10%)

17. BACK-UP INFO A REACTOR WEIGHING 800 MT ON DECK CARGO DUMB BARGE TUG USED FOR TOWING

18. PROJECT CARGO

19. PROJECT CARGO

20. UNDERWRITING WISDOM PRE-SHIPMENT SURVEYS ARE MUCH BETTER THAN POST- LOSS SURVEYS! INSURANCE SPONSORED DISCHARGE IN PORT PAYS FOR IT-SELF!

21. Case Study 4- Auto Exports

22. Car Carrier

23. Tsunami 26 th Dec 2004

24. Tricolor

25. UNDERWRITING WISDOM MURPHY’S LAW: EVERYTHING THAT CAN GO WRONG WILL GO WRONG, AT THE WORST POSSIBLE MOMENT IN TIME. EXPECT THE UNEXPECTED!

26. Case Study 5- Piracy

27. Case Study 6 Vessel Sonoma Cargo- DAP Voyage- USA to India Incident- Shortage at discharge

28. UNDERWRITING WISDOM Recovery – Action usually against P&I Clubs generally pays off! Average recovery ratio: 20% some reach as high as 40%

29. Benchmark No.1 10 + Year Imports forthe construction of2 Cities in Saudi Arabia ICC-A Cover Breakeven Rate 0.30%

30. Benchmark 2 Bagged Cargo suffers from expectable, normal loss of 1%

31. Benchmark 3 46% of merchant fleet is over 15 years old 86% of all vessels lost were over 15% of age

32. Benchmark 4 70% of all cargo losses have human error as the ultimate cause. Only 30% are caused by force majeur

33. Benchmark 5 Containers are good but cannot stop- Theft Sweat On deck losses Stowage losses

34. UNDERWRITING WISDOM TO COMPETE IS IMPORTANT. TO MAKE A PROFIT IS PARAMOUNT TO SURVIVAL!

35. Thank You.