PGI Marine Insurance 1

Question 1

Which legislation governs marine insurance contracts in Singapore?

Accepted Answer

Marine Insurance Act (Cap. 387)

Answer

The Marine Insurance Act (Cap. 387) is the primary statute governing marine insurance contracts in Singapore, based on the UK Marine Insurance Act 1906.

Question 2

What does the principle of 'utmost good faith' (uberrimae fidei) require of a proposer in marine insurance?

Accepted Answer

To disclose all material facts that would influence an insurer's decision

Answer

Utmost good faith requires the proposer to voluntarily disclose all material facts that a prudent insurer would want to know when assessing the risk, even if not asked.

Question 3

In marine insurance, what is an 'insurable interest'?

Accepted Answer

A legal or equitable relationship between the insured and the subject matter at risk

Answer

Insurable interest means the insured must have a legal or equitable relationship with the subject matter such that they benefit from its safety or suffer from its loss.

Question 4

What is a 'voyage policy' in marine insurance?

Accepted Answer

A policy covering a specific voyage from one place to another

Answer

A voyage policy covers the subject matter for a specific voyage, attaching at the commencement of the voyage and ceasing when the destination is reached.

Question 5

Under the Institute Cargo Clauses (A), which of the following risks is EXCLUDED?

Accepted Answer

Loss due to inherent vice of the cargo

Answer

Inherent vice — deterioration or damage arising from the nature of the goods themselves — is excluded under all Institute Cargo Clauses, including the broadest (A) cover.

PGI Insurance Practice Test

PGI Insurance Practice Test

PGI Marine Insurance 1