In the maritime industry, marine insurance under law on latest marine insurance is considered an important tool to help businesses compensate for losses caused by risks occurring in the field of ships, boards and freight by maritime means. So, how is the regulation of law on latest marine insurance?
1. Law on latest marine insurance defines marine insurance
The Maritime Code 2015 – being law on latest marine insurance, defines marine insurance contract means insurance contract against marine risks. Under law on latest marine insurance, the assured is bound to pay agreed premiums and the insurer undertakes to indemnify the assured against marine losses that fall under the insurance coverage in manner and to the extent thereby agreed[1].
Law on latest marine insurance provides the following types of marine insurance:
- a) Import and export cargo insurance transported by sea: the subject of insurance is the imported goods transported at sea and related costs.
- b) Marine hull insurance: the object of insurance is the hull, machinery and equipment on board and reasonable expenses (costs along the journey, advance payment of wages for sailors, a part of responsibility that the owner the ship must bear in case of two ships collide.)
- c) Shipowner’s civil liability insurance: insurance for damages arising from the ship owner’s liability in the course of owning, trading and operating a ship to others.
Furthermore, law on latest marine insurance provides that a partial interest of a ship, ship in course of building, goods or any other property is insurable.
2. Law on latest marine insurance provides about evidence of the marine insurance contract
Law on latest marine insurance provides insurance policy or certificate is evidence of engaging marine insurance contract. Law on latest marine insurance gives forms of marine insurance contract including form of voyage, period, valued or unvalued policy/certificate.
3. Sum insured
under law on latest marine insurance is the sum that the insurer must pay the assured when an occurrence took place. Law on latest marine insurance requires the assured must declare the sum insured for the subject matter insured upon effecting an insurance contract.
Marine insurance under law on latest marine insurance is an important statute, a useful tool in minimizing risks and limiting losses to shipping parties.
If you need support in making the law on latest marine insurance, please contact us: Phuoc & Partners is a professional consulting firm established in Vietnam and currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi and Danang. Phuoc & Partners is also rated as one of the leading consulting firms specializing in business law in Vietnam that has leading practice areas in the legal market such as Intellectual Property, Labor and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing customers with optimal and effective legal service.
[1]Article 302.1 of Vietnam Maritime Code 2015.
