Course Name: MARINE INSURANCE

Degree: Bachelor

Code

Year/Semester

Local Credits

ECTS Credits

Course Implementation, Hours/Week

Course

Tutorial

Laboratory

DIE 533

SPRING

3

5

3

Department

IIBF

Instructors

DR. TANSEL ERKMEN

Contact Information

terkmen@pirireis.edu.tr

Office Hours

WED. 1300-1630

Web page

www.pirireis.edu.tr

Course Type

 Compulsory

Course Language

English

Course Prerequisites

  -

Course Category by Content, %

Basic Sciences

Engineering Science

Engineering Design

Humanities

10

50

40

Course Description

Thoroughly understand the reasons for and application of marine insurance in shipping business. Thoroughly understand the division of the market between Lloyds, insurance companies and Protection & Indemnity associations (P&I) and their respective organisational structures.
Be aware of the concept of mutuality in P&I associations. Understand the different classes of risk covered by marine insurance:

• Hull & Machinery
• Freight & Hire
• War Risk
• Cargo Liability
• Employee Liability

Understand the role and need for professional indemnity insurance (errors and omissions)
Third Party Cover for Transport Operators
Protection & Indemnity
Third Party (including collision, damage to other property, death and personal injury, pollution liability)
Risks and cover available to Professionals service providers [surveyors, brokers; contractual carriers / freight forwarders.

Course Objectives

To introduce the students to the strategic importance of all elements and their inter-relations in the maritime and international trade environment. After completing this module they would be able to identify the aspects driving change and effectively partake in the decision making processes in the maritime sector. The curriculum also focuses on the future developments in the context of port & ship management and logistics. The graduates should assimilate next competencies:

1. to define the main components of marine insurance;
2. to understand Shipping market description and types of shipping, Environmental aspects of maritime insurance
3. to know costs types of insurance,
4. to define and to interpret the major aspects related to maritime market evolution and its components;

Course Learning Outcomes

1. Understand the principal elements of shipping and world trade.
2. Understand the key provisions of the Marine Insurance Act 1906.
3. Understand and apply key underwriting considerations in marine insurance.
4. Understand the scope of cover under marine hull, liability and related insurances.
5. Understand the scope of protection and indemnity (P&I) insurance
6. Understand claims investigation, handling and settlement procedures in marine insurance.

Instructional Methods and Techniques

Lecture, discussion and problem sessions

Tutorial Place

Co-term Condition

Textbook

1.The Principles of marine Insurance by A Primer by Harold Turner

2. Controlling Cargo theft by Tyska Fennely,
3. Inland Marine Insurance –Roderick McNamma,

Other References

Homework & Projects

Laboratory Work

Computer Use

Other Activities

Assessment Criteria

Activities

Quantity

Effects on Grading, %

Attendance

Midterm

1

40

Quiz

Homework

Term Paper/Project

Laboratory Work

Practices

Tutorial

Seminar

Presentation

Field Study

Final Exam

1

60

TOTAL

100%

Effects of Midterm on Grading, %

40%

Effects of Final on Grading, %

60%

TOTAL

100%

Week

Topics

Course Outcomes

Week 1, 2

Thoroughly understand the role and function of the UK Marine Insurance Act, 1906 (as amended). Be aware of the perils covered by the Act.

I

Week 3

Thoroughly understand the concept of insurable interest and utmost good faith.
Be aware of the practice of re-insurance. Understand how the rights and benefits under the contract can be assigned.
Understand how insurable value is determined.

I-II

Week 4, 5

Understand the extent of liability to the insurer both in respect of total and partial loss and how apportionment is made.

II-III

Week 6, 7

Thoroughly understand how the insurer becomes entitled to the insured property (subrogation). Thoroughly understand the distinction between express and implied warranties and the effect of breach of warranty, and when warranty may be exceeded.

II-III

Week 8

Thoroughly understand the changes brought about by the Insurance Act 2015 to the principles of Marine Insurance.

II-III

Week 9

MID TERM

Week 10

Thoroughly understand the implied warranty of seaworthiness of the ship.
Understand which losses are covered by the policy and the importance of establishing the proximate clause. Understand those perils which are excluded from the policy (in particular—misconduct, delay and inherent vice).

II-III

Week 11

 Understand the procedures and documentation involved in effecting marine insurance. Understand the way premiums are assessed and applied.

I-II-III

Week 12

Thoroughly understand the concept of total loss, both actual and constructive.
Thoroughly understand the definition of ‘Particular Average’ clearly distinguishing it from General Average.

II-IV

Week 13

Understand the responsibility of the insured to make efforts to mitigate the loss (sue and labour). Thoroughly understand the principle of salvage and how salvage services are remunerated. Thoroughly understand the different ways in which liability may be limited in the case of third party claims against the insured. Thoroughly understand the concept of General Average (GA).
Understand the important role of GA within the marine adventure

III

Week 14

FINAL EXAM

II-III-IV

Program Outcomes

Level of Contribution

1

2

3

a

Ability to analize the theoretical information in the area of maritime economics and management, and to assess their implications in implementation.

X

b

Ability to acquire distinctive information in the key aspects of the maritime business environment.

X

c

Ability to acquire knowledge by integrating information related to the field of maritime business and management  into computerized environments.

X

d

Ability to present obtained information by employing the technical skills required by the field of maritime business  and finance (such as in computerized environments) in Turkish or English.

X

e

Ability to employ knowledge related to the field of maritime business  and management  in decision-making, application, and the application of decisions.

X

f

Ability to produce multidisciplinary assessments and conduct analyses in harmony with the area of maritime business  and management  , related sub-fields, and other social science areas.

X

g

Ability to incorporate and accurately assess ethical and Professional responsibilities.

X

h

To be able to have leadership and management competencies that a manager and entrepreneur should have working at the international level.

X

i

To have a wide-range understanding for the incorporation of the effects of the field of maritime business  and management  in a global context.

X

j

Having acquired lifelong learning skills.

X

k

Having wide knowledge on contemporary topics.

X

l

To act in accordance with social, scientific, cultural and ethical values ​​and with the consciousness of social responsibility in various fields of international trade.

X

m

Having practical and theoretical technical knowledge for being able to obtain information and results  through data analysis.

X

Prepared by

Dr.Öğr.Gör. TANSEL ERKMEN

Date

FEB. 2018

Signature