Today, approximately 80 % of the goods we consume and, therefore, of world trade is carried by sea, according to UNCTAD data. It is therefore essential to keep ships on the move.
However, every maritime expedition is exposed to different types of risk, from storms to engine failure, shipwreck or even collision.
What is marine insurance?
Marine insurance is a contract whereby the insurer undertakes, in exchange for a premium, to indemnify the insured for any property damage suffered by his interests during a maritime voyage, always within the legal limits agreed in the policy.
At present, there are different types of marine insurance. Hull insurance is one of the best known, since it protects the hull of the vessel and its structure in case of damage or accident. However, there is also transport insurance, which covers loss or damage to goods during transit.
Liability insurance is also essential, as it provides compensation for any type of accident occurring during transport or maritime and port work that may cause damage to third parties, whether another vessel or port facilities.
Therefore, marine insurances are usually very comprehensive policies that are not limited to cover the risks of navigation, but extend to the land phases before and after embarkation or disembarkation that have a direct relationship with navigation.
What laws regulate marine insurance?
Marine insurance is regulated by both general laws and specific provisions. Law 14/2014, of 24 July on Maritime Navigation regulates the framework in which the activities inherent to maritime traffic are registered, as well as the instruments and vehicles, guaranteeing the consistency of Spanish law with the various international conventions on maritime law.
However, said regulation states that all those situations that it does not contemplate will be governed by the Insurance Contract Law, which applies directly and exclusively to compulsory insurance for sport or recreational vessels.
In any case, it is important to note that all marine insurance contracts are fundamentally governed by the agreement between the intervening parties, since the rules established by the Maritime Navigation Law are essentially dispositive, which means that it is possible to dispense with them in favor of the principle of free will. This is a condition intrinsic to marine insurance, since the rest of the insurance modalities have a jus cogens nature, so that neither the exclusion nor the alteration of their content is allowed, so that any contrary agreement would be declared null and void.
Likewise, it is important to bear in mind that the particular or special conditions of all marine insurance policies take precedence over the general ones, since it is assumed that these are better adjusted to the specific conditions and needs of the vessel.
Finally, marine insurance should take into account the Clauses of the Institute of London Underwriters, which are applied in practically all international markets since they cover the main risks related to cargo and maritime transport.