The slides, written out
AI-drawn illustration. Simplified to explain the idea, not to scale.
Slide 1 · MARINE
MARINE
INSURANCE
PRINCIPLES
The Three Foundations
Every Marine Engineer
Must Understand
INSURABLE
INTEREST
INDEMNITY
UTMOST
GOOD FAITH
MARINE
INSURANCE
POLICY
KNOW THE PRINCIPLES.
PROTECT WHAT MATTERS.
| |
Slide 2 · MARINE INSURANCE
MARINE INSURANCE:
PRINCIPLES & WARRANTIES
Understanding the Foundation of Marine Risk Protection
MARINE INSURANCE POLICY
Slide 3 · PRINCIPLES OF
PRINCIPLES OF
MARINE INSURANCE
5 CORE PRINCIPLES
Marine insurance is a contract of indemnity,
based on utmost good faith.
1
INSURABLE INTEREST
The assured must have a
financial interest in the
subject matter at the
time of loss.
2
UTMOST
GOOD FAITH
All material facts
must be disclosed
to the insurer.
3
INDEMNITY
The policy restores the
assured to the position
immediately before
the loss.
4
PROXIMATE CAUSE
Liability depends on
the dominant,
effective cause of
the loss.
5
WARRANTIES
Promises made by
the assured must
be exactly
complied with.
MARINE
INSURANCE
PRINCIPLES
The Marine Insurance Act 1906
remains the foundation of
marine insurance law.
Slide 4 · WARRANTIES
WARRANTIES
EXPLAINED
WHAT IS A WARRANTY?
A warranty is a promise that:
• Something shall be done
• Something shall not be done
• A condition shall be fulfilled
(MIA 1906 Section 33)
EXPRESS WARRANTIES
Explicitly written into
the policy.
Examples:
Minimum vessel
DWT
Approved
trading area
No known
losses
IMPLIED WARRANTIES
Automatically implied by law
under the MIA 1906.
Key Implied Warranties:
Warranty of
Seaworthiness
Warranty of
Legality
Warranty of
Neutrality
Warranty of
Good Safety
Warranties are conditions before the risk attaches
and must be exactly complied with.
Slide 5 · BREACH OF
BREACH OF
WARRANTY
WHAT HAPPENS?
BEFORE INSURANCE ACT 2015
(MIA 1906)
BREACH OCCURS
Warranty condition
is not complied with.
INSURER DISCHARGED
Insurer is discharged from
liability from the date of breach.
COVER CEASES
Policy is treated as
ineffective from that point.
AFTER INSURANCE ACT 2015
(Insurance Act 2015)
BREACH OCCURS
Warranty condition
is not complied with.
COVER SUSPENDED
Insurer's liability is suspended
during the period of breach.
BREACH REMEDIED
When the breach is
remedied.
COVER MAY RESUME
Cover may revive subject
to policy terms.
CASE EXAMPLE
THE HO FENG 7
POLICY WARRANTY
Minimum DWT
not less than
10,000 tonnes.
ACTUAL VESSEL
Vessel DWT was
8,960.13 tonnes.
RESULT
Warranty breached
and insurers avoided
liability under the
policy terms
applicable.
KEY TAKEAWAY
Understand the
Principles
Know the
Warranties
Recognize the
Consequences
of Breach
The Marine Insurance Act 1906 remains the foundation
of marine insurance law, modified by the Insurance Act 2015.
Drafted by SailR from our daily lessons. AI-drawn illustration. Simplified to explain the idea, not to scale. Last updated 19 Oct 2026.
Spotted a mistake?
