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

Subrogation allows the insurer, after paying the insured's claim, to step into the insured's legal shoes and pursue recovery from the third party responsible for the loss.

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

Notice of abandonment must be given by the insured to the insurer when claiming a constructive total loss; by accepting abandonment, the insurer acquires whatever remains of the subject matter.

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

A marine surveyor's report documents the cause, extent, and nature of the loss or damage, providing the evidence base for the insurer to assess and settle the cargo claim.

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

Only insurers licensed by MAS under the Insurance Act are authorised to carry on insurance business, including marine insurance, in Singapore.

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

In marine insurance, 'average' (or 'particular average') refers to a partial loss of the subject matter, as opposed to a total loss or a general average sacrifice.

PGI Insurance Practice Test

PGI Insurance Practice Test

PGI Marine Insurance 3