Course Name: MARINE UNDERWRITING

Degree: Undergraduate

Code

Year/Semester

Local Credits

ECTS Credits

Course Implementation, Hours/Week

Course

Tutorial

Laboratory

DIY 303

3

3

3

3

Department

Faculty of Economics

Instructors

 Dr. TANSEL ERKMEN

Contact Information

terkmen@pirireis.edu.tr

Office Hours

Mon. 1400-1600

Web page

www.pirireis.edu.tr

Course Type

 Compulsory

Course Language

English

Course Prerequisites

  -

Course Category by Content, %

Basic Sciences

Maritime Science

Maritime Transportation

Humanities

10

30

30

30

Course Description

This course is intended to give the students an opportunity of acquiring the terminology of insurance, history of insurance, reason of insurance and beginning of the claims side of Marine Insurance and to enable him to better understand the text books when he decides to make the subject a matter of close study. To develop in the candidate:

• acknowledge and understanding of the assessment of hull risks;
• acknowledge and understanding of the assessment of cargo risks;
• acknowledge and understanding of the assessment of liability risks;
• acknowledge and understanding of the assessment of energy risks;
• acknowledge and understanding of the cover provided in the marine insurance and reinsurance markets for all of the above risks;
• the ability to synthesize different aspects of the syllabus and apply them to marine underwriting, broking and claims scenarios;
• the ability to apply knowledge and skills to practical situations.

Course Objectives

To introduce students to the Insurance and insurance terms, definitions, and types of Insurances.

2. To introduce students to reason of insurance.

3. To introduce students the concept of the Marine Insurance.

4. Explore ship owner’s P&I club entry and the various international marine liability rules and limitations.

5. Understand the different types of insurance, available clauses

6. To Introduce the Functions and Characteristics of Insurance

7. To introduce Legal and Fundamental Principles of Insurance

8. To introduce the Doctrine of Contribution

9. To Introduce the Contract of marine insurance as a contract of indemnity

10. Identify the various marine insurance policies and apply the rules of each policy

11. Analyze the major aspects of disclosures and representations and the various warranties available

12.Understand the different types of Marine insurance, available clauses Cargo Insurance, Protection & Indemnity (P. & I.), Collision Claims

Course Learning Outcomes

Students who pass the course will be able to:
I. Comprehend Fundamentals of Basic Insurance terminology.

II. Understand and response Marine Insurance requirements.
III. Easily follow up regulations and documents regarding marine industry.

IV. Calculate the basic Insurance Premiums and Claims

Instructional Methods and Techniques

Lecture, discussion and problem sessions

Tutorial Place

Class teaching

Co-term Condition

Textbook

• Lecturer Notes
• Marine Cargo Insurance, John Dunt, 2008
• Marine Insurance, Prof. D. R. Thomas, 2007
• Cargo Insurance Manual, Roanoke Trade Services, 2009
• Marine Insurance Legislation, Robert Merkin, 2010
• The Principle of Indemnity in Marine Insurance Contracts, Kyriaki Noussia, 2007
• Marine  Insurance Law and Practice, F.D. ROSE,  2004
• Risk Management and Insurance, Perspective in a Global Economy Harold D. Skipper , W. Jean Kwon
• A guide to marine hull insurance claims. Nigel C Rogers, John R Ahern. Rev ed. London: Richards Hogg, 1993.
• Marine claims handbook. N G Hudson, J C Allen. 5th ed. London: Lloyd’s of London Press, 1996.
• Marine insurance claims. J Kenneth Goodacre. 3rd ed. London: Witherby, 1996.

Other References

Homework & Projects

• Case Studies

Laboratory Work

Computer Use

Other Activities

Assessment Criteria

Activities

Quantity

Effects on Grading, %

Attendance

Midterm

1

20

Quiz

1

10

Homework

2

10

Term Paper/Project

Laboratory Work

Practices

Tutorial

Seminar

Presentation

1

10

Field Study

Final Exam

1

50

TOTAL

100%

Effects of Midterm on Grading, %

50%

Effects of Final on Grading, %

50%

TOTAL

100%

Week

Topics

Course Outcomes

Week 1, 2

The Meaning of Risk

• The Nature of Insurance
• Introduction
• Suitability and Purpose of insurance
• Definition of Insurance and How it works
• History of Insurance
• Risk assessment; Students should be able to discuss the main risk assessment and rating factors applicable to the underwriting of:

• navigating hulls;
• building/repair risks;
• port risks;
• loss of hire;
• mortgagee’s interest.

I

Week 3

• Contracts
• Terminology
• Contracts and Kinds of Insurance
• Type of Insurance and other types of Policies
• Fundamental principles of Insurance Contracts
• Utmost Good Faith,
• Insurable Interest and Cause Proxima
• Doctrine of Contribution
• Nature of the Contract of Insurance
• Special Characteristics of Insurance Contract
• Misrepresentation and Indemnity

I-II

Week 4

• The methods used in and importance of loss prevention.
• Claims issues; Deductibles and limits
• The application of deductibles and limits to the underwriting of hull risks.
• The types of claims arising under marine hull insurance contracts and the application of coverage to a given set of facts.

I-II

Week  5

Cargo and goods in transit;

The main risk assessment and rating factors applicable to the underwriting of:

• cargo risks; goods in transit risks.

• The methods used in and importance of loss prevention.
• The basis of cover provided for war and strikes, including terrorism;
• Discussing market practice and its influence on the premium charged.
• The types of claims arising under marine insurance cargo contracts and the application of coverage to a given set of facts.

Describeing the cover provided by each of the following:

• Institute Cargo Clauses A, B & C;
• Institute Trade Clauses;
• Institute Container Clauses;
• Institute War Clauses (Cargo);

II-III

Week 6, 7

Protection and indemnity claims

• The types of claim arising under P&I insurance and the application of coverage to a given set of facts.
• The main risk assessment and rating factors applicable to the underwriting of:

• exploration risks;
• construction risks;
• operational risks;
• operators’ extra expenses insurance.

II-III

Week 8

• Marine financier protections.
• Marine liability including P&I for ship owners and charterers.

II-III

Week 9

MID TERM

Week 10

• Explain the principles of portfolio management.
• Discuss the factors used in the arranging and pricing of a marine reinsurance programme.

• Evaluate the ways in which a major loss/casualty affects cross-class issues.
• Explain the types of claims arising under marine reinsurance contracts and the application of coverage to a given set of facts.

II-III

Week 11

• Types of Losses
• Losses
• Total Loss
• Partial Loss
• Collision Liability
• Cargo Loss
• Cargo Partial Loss

I-II-III

Week 12

• Types of Losses
• Freight and Freight Loss
• Third Party Recoveries
• Sue and Labor Clauses
• Claims Loss of Crew Members’ Personal Effects
• Defense
• Strikes

II-IV

Week 13

• Warranties and Losses
• Warranties
• Implied Warranties
• Particular Average and General Average
• Marine Policy for Overseas Shipment

III

Week 14

• Marine reinsurance.
• The marine insurance broker’s duties.
• General average and salvage.

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

TANSEL ERKMEN

Date

Signature