PGI Marine Insurance 3

Question 1

When a marine cargo insurer pays a claim and wishes to recover the loss from a negligent carrier, which legal principle allows it to do so?

Accepted Answer

Subrogation

Answer

Contribution

Answer

Indemnity

Answer

Proximate cause

Question 2

What is a 'notice of abandonment' in marine insurance, and when must it be given?

Accepted Answer

A notice the insured gives to the insurer when electing to treat a constructive total loss as an actual total loss, transferring title to the insurer

Answer

A notice the insurer sends to decline a claim on grounds of unseaworthiness

Answer

A notice required when a vessel changes its registration from Singapore to a foreign flag

Answer

A notice the MPA issues when a vessel is detained at port

Question 3

In a marine cargo claim, what is the significance of the 'survey report' obtained from a marine surveyor?

Accepted Answer

It establishes the cause, nature, and extent of loss or damage to support the claim assessment

Answer

It determines the premium refund due to the insured after a partial loss

Answer

It provides the insurer's formal acceptance or rejection of the claim

Answer

It records the vessel's seaworthiness before departure

Question 4

Under Singapore's Insurance Act, who is authorised to carry on marine insurance business in Singapore?

Accepted Answer

Only insurers licensed by the Monetary Authority of Singapore (MAS)

Answer

Any company registered under the Companies Act with a minimum paid-up capital of S$1 million

Answer

Any individual holding a General Insurance agent's licence

Answer

Only Lloyd's of London syndicates operating through a local coverholder

Question 5

What is 'average' in the context of marine insurance (as distinct from general average)?

Accepted Answer

A partial loss of the subject matter insured

Answer

The mean premium charged across a class of marine risks

Answer

The average age of a vessel used to determine premium rates

Answer

The proportional share of a claim paid by each co-insurer

Question 6

Which of the following is a key document typically required when making a marine cargo claim in Singapore?

Accepted Answer

The original Bill of Lading, commercial invoice, packing list, and survey report

Answer

A certified copy of the insured's personal income tax statement

Answer

A letter of credit from the importing bank confirming payment

Answer

A MAS Form MIS-1 completed by a licensed loss adjuster

Question 7

Why is Singapore considered a major hub for marine insurance in Asia?

Accepted Answer

Singapore is one of the world's busiest ports and a regional financial centre with a well-developed legal framework for marine disputes

Answer

Singapore imposes no premium tax on marine insurance policies, making it cheaper than all other Asian markets

Answer

All ASEAN member states are legally required to insure cargo through Singapore-licensed insurers

Answer

Singapore's MAS mandates that all cargo passing through PSA terminals must be insured locally