Question

Q1: what is the meaning for “sea worthy” and “cargo worthy” in international maritime transportation? Find the ordinary criterions for these two terms. what’s the relation between these two terms and Limitation of Liability for Maritime Claims of the carrier?
Q2: what does it mean by “lay time”, “despatch” and “demurrage”? why there would be no such related terms in a time charter normally?
Q3: what is the requirement for an ideally insurable risk?
Q4: what is the requirement for a valid insurance claim against the insurance company?

Answer 1

1. A Sea worthy or cargo worthy containers have a degree of fitness, after being thoroughly inspected, that there are no damages that would harm its ability to be transported around the world. The container must have a sea worthy or cargo worthy certification as per the International Convention for Safe Conatiners (ICSC) before being transported. the certification is checked by the port authority before loading the vessel on the ship.

Limitations of Liability for Msritime Claims of the carrier-

As per the Merchant Shipping (Maritime Claims Limitation of Liabilty) Act, 1989

1. The carrier is laible for the claim if the damage so occurred happened during the course of the carriage or because of the negligence of the staff carrying the carriers.

2. The claimant has to prove the incident and extent of damage while claiming

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2. Lay time - the time period allowed to ship in the voyage for loading and unloading a shipment at the port.

Demurrage- If the loading and unloading takes excess time that what is allowed, then it attracts a fine called demurrage.

Despatch- If the loading and unloading is done within the allowed laytime, the time still left is called despatch.

These terms are included in a voyage charter instead of a time charter. This is because a voyage charter deals with everything related to the hiring of vessel and staff betwen port of loading and port of discharge.

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3. Requirement for an ideally insurable risks are-

a. The loss must be accidental, measureable and not catastrophic.

b. A large number of exposure units must exists.

c. The probability of loss must be calculated.

d. The premium so collected should be feasible.

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4. Requirements for a valid insurance claim against the insurance company are-

a. Inform the insurance company as and when loss occurs.

b. The damage willl be assessed by the surveyor.

c. Submission of proofs along with the cliam form.

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