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Maritime Insurance
Chapter(1)
Chapter (2)
Chapter: 2
Provisions on Certain Maritime Insurance Type
First: Insurance on Ships
Article373:
Insurance
on ships shall be held successive journeys, or for a determined period.
Article374:
1-
The validity
of
the
guarantee
given by
the
Insurance
pre
journey,
shall
begin
from
the
time
of
starting
the
shipment
of goods
to
the
time of complete
debarkation
of goods,
providing
such
period
shall
not exceed
the
Insurance
validity
period,
in
all
case,
by
more
than
fifteen
Days
from the arrival
of
ship to
destination
and
the announcement
of shipmaster
concerning
his
ship's
preparedness
to unload
the
consignment.
2-
If the
Ship
is
void
of goods,
the
guarantee
made
by
the
Insurer
shall
begin
form
the
date
the
ship
moves
to
sail
off
until
anchors
at
the
location
of
the
destination.
Article375:
If the Insurance
as
concluded
covers
multiple
successive
journeys,
the
place
as determined
in the
Insurance
Policy
for
completion
of
the last
journey
shall
be considered
as
the
place
where
the
guarantee
made
by
the Insurer
shall
expire.
Article376:
If the insurance
is
made
for
a determined period
the
guarantee
as made by the insurer
shall
cover
all
risks
and dangers
which
take
place
on the day
of
the
guarantee
period
and those occurring
on the
last
day
of
it. A
day
shall
be counted on the basis of twenty fours beginning
from the
hour
of
signing
the contract
according
to
local
time
of the
place
where
the
insurance contract is signed.
Article377:
1- the insurer
shall
not
held
accountable
for
the
damages
resulting
from inherent defect and flaws in the ship unless
the defect
is invisible.
2- The insurer
shall
not be held accountable for
the
damages
resulting
from premeditated
faults on the part of the shipmaster.
Article378:
Except for the damage or harm caused to person
the insurer
shall
pay
for the damages
whatever
their
kinds since the insurer
shall
be responsible
to pay
to third parties in collision occurs between
the insurance
ship and another
ship or the insured ship collides against a fixed
moving
or floating
object.
Article379:
1- In case insurance
on the ship is made
for one once or multiple successive
journeys
the insurer shall
be entitled
to the insurance
on
the insurance premium in full once the risks as covered by insurance
begin.
2-
If the insurance
is for a determined period the
insurance
shall
be paid the
premium
for the
whole
insurance
period in case the ship is wholly destroyed
or if the insured
opts to relinquish the ship to the insurer
when
the destruction of the ship or its relinquishment is considered the
insurer's liabilities
.if
however
the destruction or relinquishment
of
the
ships
is not
of
the responsibility
of the insurer the premium covering the period from the date
the risk
insurance
validity
period begins to the date of accident resulting in the ship's
destruction or from the date of announcing
the desire
of
the
insured
to give
the ship up to the
insurer
shall
only
be payable.
Article380:
1- Within
the limits
of the insurance
amount
the insurer shall
guarantee
the
damages
resulting
from all
accidents
occurring
the
validity
period
of the
insurance
policy
whatever
the number
of accidents.
2-
The right
of the insurer to
claim
a
supplementary
premium
following
each
accident may also be agreed upon.
Article381:
In the
event
of settlement by
indemnification,
the
Insurer shall sustain the expenses involved in replacing the parts and
the necessary repairs to render the ship seaworthy,
but
not
indemnities
for reasons resulting form the reduction in the
ship's value or its being out of work or for any other
reason.
Article382:
1- subject to the provisions
of article
349 of the present
law, if the ship's value is agreed upon in the insurance
contract, no litigation in connection therewith shall be acceptable
neither in the case of sharing in the joint losses nor rescuing costs
according to 366 of the present law.
2- The value as agreed upon shall comprise the hull and
propellers of the ship and its ancillaries as owned by the insured shall
result in reducing the insurance amount agreed upon by the equivalent of
the value of such ancillaries in case of total destruction or
relinquishment of the ship.
3- All insurance, whatever its date, as held exclusively on the
ancillaries owned by the Insured, shall result in reducing the insurance
amount agreed upon by the equivalent'
of the value of such ancillaries in case of total destruction or
relinquishment of the ship.
Article 383:
The insured may relinquish the ship to the insurer in the following
cases:
A- The total destruction of the ship.
B- If the costs involved in repairing or rescuing and salvaging
the ship are equivalent to at last three fourths of its value as
indicated in the insurance policy.
C- In case the ship's news has been interrupted for a period of
three months after receiving the last news about it the ship shall be
presumed as destroyed on the date such news was received.
D- If the ship has suffered irreparable damage or such damage was
impossible to repair due to the lack or unavailability of material
equipment as necessary for the repair of such damage at the place where
the ship is found at the time of its damage unless it was, however,
possible to tug it to another place where its repair would be feasible.
2- If the
insurance
concluded
on the ship comprises
war risks
the
insured
may
then use
his
right to relinquish
the
ship in case
of capture
or
detention
or prevention
from
sailing
off
upon
orders
from
the
public
authorities
in
case
the insured
is
unable
to
retrieve
his ship
within
four months from the date he
notifies
the
insurer
of the incident
occurrence.
Article384:
1- Insurance
contracts covering several
ships belonging
to the same furnisher shall apply as though each of these
ships belonged
to a different
furnisher and
outfitter.
2- In relation
to the ship insurer
the goods
and
other
properties
as
owned by
the furnisher and outfitter
shall be
considered
as
owned
by
the third party.
Article385:
1- In case of transfer
of the ship's ownership
or
the ship is chartered without due furnishing insurance shall remain
valid by force of law in favor of the new owner or charterer , providing
the insurer is notified there of within
fifteen days
from the date of transferring the ship's ownership or chartering it.
Official holidays shall not be included
within
the fifteen days
period the new ship-owner
or charterer shall assume all the liabilities as were shouldered by the
insured vis-à-vis
the insurer by
virtue of such insurance.
.
2- The insurer may require the rescission of the insurance
contract within one month from the date of notifying him about the
ownership transfer of the ship or its charter. In this case the contract
shall continue to be valid for a period of fifteen days from the date of
requesting its recession.
3- The original insured party shall remain committed vis-à-vis
the insurer to pay
the insurance premiums as due up to the date of transferring the
ownership of the ship or that of chartering it.
4-
If the
.notification
about transferring the ownership of the ship, or chartering it does not
take place within the period prescribed in clause (1) here above the
insurance shall be considered as interrupted from the date of expiry of
that period insurance contract shall resume producing its effect twenty
four hours after the notification is made the insurer shall refund
the insurance premium for the period of interruption of the contract.
5-
The
provisions
of
this
article
shall
not
apply
to
the
case
of
the
Ship
ownership
in
common,
unless
transferring
its
ownership
will
comprise
the
majority
of
shares.
Artic1e386:
The provision
of
articles
373 to 385
of
the present
law
shall
apply
to Insurance
Contracts
which
are
restricted
to
the period
of the
ship's
presence
in
a port, berth,
dock,
or
any
other place.
These
articles
shall
also
apply
to
Insurance
on
the
ship
while
still
under
construction.
Second: Insurance on Goods
Article387:
Insurance
On Goods
shall
be held
by
virtue
on
Insurance Policy for one journey,
or by
sharing
in a common Insurance Policy.
Article388:
Goods
shall
be covered with Insurance uninterruptedly, at any place during the
journey as determined
by the parties of the Insurance
Policy.
Article389:
If during the journey, the goods are found subject to surface, river,
or air transport, as
a complementary
part of the journey,
rules of sea and maritime insurance shall apply
during the said transport
period completing the journey,
unless otherwise agreed upon.
Article390:
The amount
of Insurance on Goods shall not exceed
the highest of the following
amounts:
A) The purchase price of goods at the goods at the place and time of
shipment, or their current price at that time and place if they
were not purchased. The goods transport cost (freight) to the port of
destination, and the expected profit, shall by
added to the foregoing purchase or current price'
of goods.
B) The price of goods at the time and place of arrival, or the date at
which the goods should have arrived, in case they perished.
C)
The selling price of goods in case
the Insured
has
sold
them,
to
which are added the other amounts as might
have been
agreed
upon
in the Sale Contract.
Article391:
Losses
as
caused
to the
goods
shall
by
estimated
at
difference
between
the
value
of the
goods
as
damaged
and
their
value
as
intact
and safe, at the same time and place.
The percentage
of
drop
in
the drop in
the
goods
value
shall
apply
as
well
to
the
insurance
amount.
Article392:
The Insured
may
relinquish
the
Insurer
in
the following
cases:
A) If news of ship is
interrupted
for a period of three
month
after
receipt of the last news abut it.
The
Ship
shall
be
presumed
as
destroyed
at the
date
this
news
was received.
B) If the Ship becomes
unseaworthy,
and no transport
procedures
of the goods begin by
any
other means,
to the place
of
destination
as agreed upon,
within
three month from
the date
the Insurer
is
notified
by
Insured of the ship's
unseaworthiness.
C) If the goods are destroyed
or
damaged
up to the
equivalent
of
at least three fourths of their
value
as mentioned
in the Insurance Policy.
D) If the goods are sold during the journey
as a result
of suffering
material
damage, in case the harm is caused
by
the occurrence of one of the risks covered by
Insurance.
If Insurance
covers war risks. The Insured may use his right to relinquish the goods
in case the ship is the captured, retained,
or
stopped
by
order
of public Authorities,
if
'the
Goods are not placed at the disposal
of the Insured within Four Months form the date the Insurer is notified
thereby,
of the accident
occurrence.
Article393:
If Insurance is concluded under a joint Insurance Policy,
such Policy
shall comprise the conditions whereby
each of the Insurer
and the Insured,
are bound,
as well as the ceiling of the amount the Insurer undertakes to pay for
each shipment,
as well as the insurance Premiums payable
by
the insured. As regards the insured
goods,
the journeys,
the ships,
and other such data, shall be determined by
Insurance policy
annexes to be issued in respect of the
each shipment separately.
Article394:
Under
a joint
Insurance Policy,
the
Insured
shall
notify
the
Insure
of
the
following shipments,
and the Insurer shall be
committed
to
accept insuring these shipments:
1st:
All
Shipments
made
for account of the Insured
or in implementation
of sale or purchase contracts
binding him
to conclude
the insurance on them insurance
shall
automatically
comprise
these
shipments once they
are
exposed to danger against
which
the
insurance is held,
providing
the insured
shall submit
his notification
thereabout within
the period as prescribed
-and
set
forth in the Insurance
Policy.
2nd: All shipments made for account of a third party to whom
the Insured
assigned carrying
out insurance procedures
on
them,
providing
the
Insured
has an interest in
the
shipment,
in this capacity
as Commission
Agent, a Trustee for the goods, or in any
other capacity,
Insurance shall not cover these shipments save form
the time
the
Insurer
is notified thereof.
Article395:
1- If the Insured
contravenes
the
obligations
prescribed
in the previous
article the Insurer may then require
rescinding
the contract immediately together with claiming
the payment for damages compensation
to him equivalent
to the insurance
premiums
concerning
the shipments of which he
was
not
notified.
2-
If there
is an established
ill-will
on the
part of the Insured,
the Insurer may
restore the amounts
paid thereby in respect of incidents
involving
shipments
subsequent
to the occurrence of the
first premeditated
violation
on the part of the part on the Insured.
Article396:
In all cases
of insurance
on goods,
the
Insured
shall
notify the Insurer within fifteen
days from
the date
of receiving
the insured
goods,
of the
damage
existence,
otherwise
he
shall
be presumed
to have
received
the
goods
sound
and
intact,
unless
he establishes
otherwise.
Third: Liability Insurance
Article397:
In
cases of holding
a liability
insurance,
no remedy
shall by
sought
against
the insured
if the
accident indicated
in the Insured
policy
takes
place unless a third
party who
is
harmed by
such
accident submits a claim
against
the Insured
whether amicably or in court
.The
obligation
of
the
Insure
shall be
within
the
limits
of
the
indemnities
the
Insured
has
to
pay.
Article398:
If the subject of
the
insurance
Liability
consists
of indemnifying the harm
and
damage
caused
to a third
party
by an act of the
Ship,
pursuant to the provisions
of article
378 of the present law,
the insurance shall then produce no effect unless the amount of
insurance on the ship
is not adequate to compensate
for the harm.
ArticIe399:
If several
Liability
Insurance Contracts are concluded,
each Insurer
shall
separately
be liable
for every accident, within the limits
of insurance amount set forth in the
relevant
Insurance
Policy,
regardless of the number
of the
accident
providing
the
total amount received by the Insured
shall
not exceed
the cost of damage ensuing from the Liability.
ArticIe400:
A Party undertaking the building or repair of the ship may conclude a
Liability Insurance Contract
covering the harms and damages to be
caused to the ship or a third party during the building or repair
operations of the Ship. Such Liability
Insurance shall not be subject to the Sea and Maritime Insurance
provisions unless parties to
the insurance
contract
agree on the applying them.
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