What's Up
Maritime Insurance
Chapter(1)
Chapter (2)
Chapter-1
The General Rules
Article340:
The provisions of this part shall apply to the insurance policy
(contract) which covers the risks and dangers connected with a sea
voyage.
Article341:
1- An Insurance contract and all modification introduced to it shall
only be established in writing.
2- A temporary insurance policy as issued by the Insurer shall bind the
two parties pending issuance of the final insurance policy.
Article342:
1- In the Insurance Policy the following data shall in particular be
indicated:
A- Date of the insurance contract, defining the day and hour of its
conclusion.
B- Place of signing the insurance policy.
C- Name and domicile of both insurer and insured parties
D- Amounts covered by insurance.
E- Risk and dangers as covered by the insurance and risks as excluded
therefore as well as their time and place.
F- Insurance amount and premium.
2- The insurer or his designee shall sign the insurance policy.
Article343:
1-
The insurance policy shall be concluded and issued in the name of the
insured to, his order or to the Bearer of policy.
2- An insurance contract may be concluded and issued in favor of an
undefined person.
3- The legal bearer of insurance policy shall have the right of claiming
the indemnity the insurer may raise vis-�-vis
such bearer of the policy all rebuttals that he may invoke against the
party with whom the policy is signed, even if the Insurance policy was
issued to order of such Party ,or to Bearer of the Policy.
Article344:
In re-insurance cases the. Insured party shall have no right to insist
on the re-insurance contract Concluded by insurer.
Article345:
Insurance may be concluded on all funds and properties which are exposed
to sea and maritime risks and hazards. Only those having interest in the
non-occurrence of the danger and risk may be a party to the insurance
policy or a beneficiary thereof.
Article346:
1- No insurance action shall be acceptable in court if two months
laps from the insurance policy date or the date defined and fixed from
starting the validity time of the risk covered by the insurance without
such risk and danger beginning to be valid.
2- This provision shall not apply to insurance policies which are held
in common except in regard to the first consignment.
Article347:
1- The insurer may ask for a court ruling which invalidates the
insurance contract if it is established that the insured party has
submitted incorrect data however not in bad faith or failed to submit
the data as related to the insurance thus held such that the insurer in
both cases has estimated the risk at less than it really is.
2-
Invalidating the insurance contract shall take place even though the
incorrect data or refraining from submitting the data does not any link
with the damage and harm occurred to the object covered by insurance.
3-
The court with due consideration to all conditions may issue a ruling in
favor of the insurer against the insured party in the cases specified in
the foregoing two clauses for payment of an amount equal to the
insurance premium if the insurance can establish there has been an ill
will on the part of the insured party or the payment of an amount
equivalent to have that premium if no ill will has been established.
Artide348:
1-
The
insured party shall
notify
the
insurer
of all conditions
coming
up during
the
validity
of the
insurance
which
are
likely to
increase
the
risk
as
covered
by the
insurer,
provided
that
such notification
shall take
place within three work
days
from the date
the insured
party
learns thereof.
If the notification
is
not made
within
that
date,
the
insurer
may
then
rescind
the contract.
2-
If
the
notification
takes
place within the time prescribed in the
foregoing
clause
and it transpires
that the danger so increased has
not
been
a
result
of
an
act by
the insured
party
the insurance shall
remain
valid
however
against
increasing
the
insurance
premium.
In case the
increase
in the risk is resulting from
an act of the insured party
the
insurer
may
then
rescind
the contact
'within
three work days
from the date
he is
notified
of the increased risk,
or maintain
the insurance
contract
along
with requiring
an increase in
the
insurance
premium against
increasing
the risk.
In the former
case
the court may upon
the request
of the
insurer
pass a ruling
for paying thereto
an amount equivalent
to the insurance
premium.
Article349:
1- The Insurer
may request
a
ruling
to
invalidate
the contract,
in case the insurance amount exceeds
the value
of objects thereby
insured,
and it is established that there has been
a
deception practiced in respect
thereof
by
the Insured Party
or its designee.
In this case
the Court shall
have
the right to pass a ruling
against
the
Insured
Part
to pay
to the Insurer
an amount not exceeding
the
full insurance
premium
in consideration
of
the damages
caused
thereto.
If, however,
there has been no deception
in concluding the policy,
the Insurance
contract shall
be considered valid
up to and within the value
of
objects
as insured
thereby.
2- In case
the
insurance
amount
is proved
to be less
than
the true value
of objects
insured thereby,
the Insurance
shall only be committed up
to
within the
limits of the insurance
amount.
Article350:
1- An Insurance
contract
concluded
after
deterioration
and
'
waste
of the
objects
insured
thereby,
or after
the
arrival
of such objects
shall
be null and
invalid,
if it
is
established
that
news
about the arrival
of
destruction
of such
objects
had
reached
the
contract
signing
place
or the place
where
the
Insured
Party
or
Insurer
exist,
before
the'
insurance
contract
was
signed.
2- If
the
Insurance
Contract
is
concluded
on
the
proviso
of good
or
bad
news,
it
shall
not be
invalidated
unless
the
Insured
Party
is established
to
have
been
aware
personally,
and before
concluding
the
contract,
of
the
arrival
of the
object
insured
thereby.
Article351:
If the
risk
has
been
covered
in
the same
contract
by
several
Insurers,
the latter
shall
each
be
committed
in the
proportion
of
its
share
in the
Insurance
Amount,
and
within
the
limits
of
such
share
without
being
jointly
liable under
such
contract.
Article352:
1-
Except
for deception
and
fraudulence
cases,
if
the
risk
is covered
by several insurance
contracts,
whetl1er they were concluded on the
same
or different
dates,
with the
total amount of
insurance
as mentioned in these
contacts,
being
more
than the
value
of
the
object
insured
tl1ereby
- over
whoever
he chooses
of the
Multiple
Insurance,
without
any
joint
liability
among them, in the ratio of the insurance amount wherewith they are
each
committed
to the real value of
the
object
insured
thereby.
2- An Insured
Party
who claims
a settlement
of
the
Damage caused
thereto shall
reveal
to the Insurer
all other
existing
insurance
contracts that he learns of,
otherwise
his
claim
shall
not be
acceptable.
3- Each Insurer
may have remedy
over
the
other Insurers
for the settlement of each one's share in the damage, in the
proportion of the amount
they are each committed with under
contract
of insurance.
If any
of such insurers is
insolvent,
his share
shall
then
be distributed among the
solvent
Insurers, in
the same proportion.
4- In case
Deception
is
established
against
the
Insured
Party,
each one of the
multiple insurance contracts shall be liable to nullification
upon the Insurer's
request
to the Court which on passing
its
sentence
for
nullification
of
the
Contract
may
also rule for paying
suitable
compensation
to those
entitled
thereto,
without
such
compensations
exceeding
the
total
insurance
premium.
Article353:
An
insurer
shall be
accountable
for the following:
A-The Material
Damages
caused
to
the
objects
insured
thereby,
as
a
result
of
a maritime
risk or
incident
considered
as
a Force
Majeure,
if
the
risk or
incident
are
covered
by
insurance.
B-
The
share
of the properties
insured,
in
the
joint
sea losses,
unless
the
losses
have
resulted
from
a
risk
that is excluded
from
the
insurance
cover.
c-
Expenses
and
outlays
which
are
spent
due
to
a risk
covered
by
the
insurance,
in
order
to
protect
me
insured
properties
from
some material
damage,
to
limit
the
degree
of
such
damage.
Article354:
1-
The
Insurer
shall
be liable
for a material
damage
caused
to
the
object
insured
thereby,
as
a
result of
the
insurer's
fault
or
a fault
of his
subordinates
working
on land,
unless
the
Insurer
can
establish
that the
damage
has
resulted
from
a
premeditated
fault,
or
a
gross
fault of the Insured
himself.
2-
Subject
to
the
provisions
of clause-2,
article
377,
of the
present
law,
the
Insurer
shall
be
responsible
for
a
material
damage
that
is
caused
to
the
objects
insured
thereby,
as
a result
of the
Shipmaster's
or Crew's
fault.
Article355:
The Insurer
shall
remain responsible
for
the
risks
covered
by
the insurance,
in
case of obligatory
change
of
the
route,
the journey
or the
ship.
If changing the
journey
or the
route
is not obligatory,
the Insurer
shall remain responsible
for
the
accidents
which are
established
to have
taken place
during
the
journey
in a portion
of the route agreed
upon,
or
the
route
normally
used
where
there is no agreement reached
on a
specific
route.
Article356:
1- Insurance shall not cover
civil
or foreign war risks, piracy
acts, seizure
of the ship and
goods,
commotion,
riots,
revolutions, strikes, closing down strikes,
sabotage
acts,
terrorism,
and damages directly
caused by
explosions
or nuclear
radiations
whatever
their cause, unless otherwise agreed.
2- With the exception of the provision of article 378 of the present
law, the Insurance
under contract shall not cover
the damage caused by the insured objects to other properties
or person.
Article357:
If agreement is reached on covering
by insurance the risks of war, such insurance shall cover
accordingly
the damages that are caused to the objects insured shall thereby
by
cause
of hostile
or retaliatory contracts, being taken as prisoner,
'capturing,
prevention
and acts of duress,
if such contracts
and acts are taking place by
governments or authorities whether
or not they are recognized
governments and authorities, or because
of the explosion
of mains and other war hardware even if the war had not been proclaimed,
or had come to an end.
Article358:
If it is impossible to determine
whether the damage was caused
by
a military
or maritime risk,
the damage
shall
then be considered
as caused by a sea risk unless
otherwise established.
Article359:
The Insurer shall not be accountable for the following:
A- Material Damages resulting from an inherent
flaw; defect in the object insured thereby, or by wrapping
2nd
packaging it inadequately, subject to the provisions of clause-l article
377 of the present law.
B- Normal decrease occurring to goods while on route.
C-Material damages resulting from fines imposed confiscation,
sequestration, seizure and capture, health arrangements, sterilization,
siege Penetration, smuggling acts, and exercising a contraband trade.
D- Compensations payable by cause of distraint, and the warranty paid to
lift the attachment.
E- Damage which are not counted as material damage directly affecting
the objects insured thereby, such as unemployment, delays, price
differences, and obstacles affecting the trading transaction and
operation carried out by the insured.
Article360:
1- Agreement may be reached on exempting the Insurer from paying the
Compensation for Damage, within the limits to be determined in the
contract.
The amount of exemption shall be deducted from the compensation amount
unless agreement is reached on paying the compensation in full in case
the damage exceeds the limits of exemption.
2-In all cases, the amount of exemption shall be reckoned after
deducting the normal decrease which affects the object insured thereby,
while on route.
Article361:
The Insured
must pay the insurance,
premium and expenses at the place and time agreed upon. He'
shall exert a reasonable degree of care toward preserving the object insured,
and shall give correct data, on signing the contract, on the conditions
and status
of which he is aware and which are considered sufficient to enable the
Insurer to estimate the risks as covered with insurance. The Insured
shall also apprise the Insurer, during the insurance
validity, of all increase in such risks, within the limits of his
awareness thereof.
Article 362:
1-
If
the
Insured
does
not
pay
the
insurance
premium
falling
due
for
settlement,
the Insurer
may
discontinue
or
rescind
the
Contract.
Interrupting
or
rescinding
the
insurance
contract
shall
be generating
its effect
after
the
lapse
of fifteen
days
from
serving
a warning
on
the Insured
in
order
to
settle
the
insurance
premium,
and advise
him
of
interrupting or rescinding
the insurance
contract.
The
warning
may
be addressed
by
special
registered
mail
or
by
Cable
or Telex
to the last
known
domicile
of the
Insured.
The
warning to proceed
with
settlement
of
the
insurance
premium
and
the notification
of interrupting
or rescinding the
Insurance
may
take
place concurrently
in the
same
procedure.
2- If the Insurance Premium and Expenses have
not been paid,
a notification
of interrupting the Insurance
shall
not prevent
serving
another notice
of rescinding the contract.
3- In case the contract
is interrupted,
Insurance
shall
resume producing its
effect
Twenty four
Hours
after payment
of the premium and expenses.
4- The effect of contract interruption or rescission
shall not be valid vis-�-vis
a Bona Fide Third Party to whom the insurance
policy ownership is transferred before any incident
occurs and before notification of contract interruption or rescission.
In case of occurrence of an incident, the Insurer may insist on a clearing
arrangement vis-�-vis
the third party, within the limits of the premium payable.
Article 363:
In case of the occurrence of a risk which is covered by insurance,
the Insured shall exert his maximum.
Effort to salvage the objects subjects of insurance, and take all
procedures and steps to preserve
the right of the Insured Party toward having
remedy
over the liable third party.
The Insured shall still be responsible
for the harm caused to the Insurer because of his negligence
(the
Insured) in carrying out his obligations.
Article 364:
Settlement
for the damages shall
be made through
compensation payment unless the Insured elects to relinquish the object
under insurance, to the Insurer, where the law or agreement
permits the Insured to choose doing so.
Article 365:
The insurer
shall not be committed to repair nor have
the objects
insured replaced by other substitutes.
Article 366:
For the objects insured, the insurer shall pay his share in the joint
losses and expenses involved for salvage and rescue
works
in the proportion of the value of such insured objects, after deducting
the special losses which if any
shall
be the insurer's responsibility & burden.
Article 367:
Giving up the objects insured may not be a partial or conditional
relinquishment. Nor shall there be any rejection of such relinquishment
except with the insurer's agreement. Giving up the
object
shall result in transferring the ownership of such insured object to the
insurer who shall pay the whole insurance amount. Transferring
the ownership shall produce its effect between the two parties
as of the day the insured announces his desire to give up the
object to the insurer. The insurer may refuse the transfer of the ownership
of objects insured to himself
however without derogation to his obligation to pay the insurance amount
in full. Article 368: The desire to give up the object insured
shall
be notified to the insurer by serving a notice via a bailiff or by
special registered mail. Announcing such desire shall take place within
three months from the date the insured
comes to learn of the accident which permits giving up the object, or
the date of the expiry period
prescribed in articles 383 and 392 of the present law.
Article 369:
When the insured notifications
the insurer,
with his desire to give
up the object insured,
he must declare and give a statement about all the insurance policies &
contracts which he has concluded or which he knows about or is aware of.
Article 370:
If the Insured gives a mala fide
statement none �conforming to the truth in connection with the
Accident, and harm results
therefrom
to the Insurer, a Court
is ruling may.
Be pronounced and passed
to extinguish his
right
to the
insurance
amount, wholly
or partly.
Article 371:
The
Insurer
shall replace the
Insured
in
all the latter's rights as established
in
connection with the damages covered by
Insurance, within the limits of the indemnities
Insurer
has paid.
Article 372:
The limitation of actions arising
form insurance contract shall abate
with the lapse
of two years.
This
period
shall
be calculated
as
follows:
A- From the date the
insurance
premium
become
payable
regarding
the Action claiming
the
premium.
B-
Form
the
date of occurrence
of
the
accident
resulting
in
a
court
action
claiming
the
payment
of
compensation
for
the
damage
occurring to
the
Ship.
C-
Form
the
arrival
date
of the ship
or date it
should
have
arrived,
in
relation
to
Court
Action
claiming
compensation
for
the
damage
caused
to the
goods.
If
the accident
occurs
at a
date
subsequent
to these
two
foregoing
dates,
the validity
period
for
bringing
the
Court
shall
begin
from
the
accident
occurrence
date.
D-
Form
the
accident
occurrence
date,
in
relation
to
Court
Action
claiming
settlement
of
the
cost
of
damages
by
means of
giving
up the
objects
insured.
Where
the
contract
has determined
a
period
for
bringing
a
Court
Action
claiming
relinquishment
of the
object,
the
period
thus
determined shall begin
its
validity
from
the
expiry
date
of
that
period.
E- Form the date settlement
is made
by the Insured, in relation
to the Court Action
brought for contributing
to the joint
losses,
or
the Action
claiming settlement
of salvage
expenses.
F- Form the date a third
party
brings Court action
against
the Insured or the date of settlement by the Insured in relation
to the latter's
Court
action the Insurer as a result of third party's claim
of remedy
over
the Insured.
2- A Court action of replevin shall
abate with the
'lapse
of two years, as regards the recovery of mounts paid, by virtue of the
Insurance Contract.
The validity of the period during which the Action
may by brought shall
begin from the date of paying
amounts undue for settlement.
3- In all cases the period of validity
for bringing the court action shall be interrupted with the delivery of
special registered
with
the receipt of documents connected with the claim, or yet with
delegating an expert to assess the damages, in addition to such other
causes as prescribed
in Civil Law.
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