Perils of the sea in marine insurance include extraordinary forces of nature faced by maritime ventures during the voyage. Broadly speaking, ‘peril of the sea’ covers damages to the ship during the voyage by the Acts of God. It includes those accidents or casualties which do not happen due to the free will of a human being. Even if we talk about natural perils, it will not include the natural and ordinary action of wind. Some examples of these perils include collision, sinking, heavy wave action, and high winds.
Type of “perils of sea” losses covered in the insurance
Further, ‘perils of the sea’ in marine insurance comprise losses only to goods on board. It covers the loss of goods on board that is damaged due to some irresistible force or natural cause. It also safeguards against losses of goods from the overwhelming power lying beyond human skill and prudence. Also, the ‘perils of the sea’ won’t cover every accident or casualty that arises in the sea.
To sum up, “perils of the sea” means damages to the vessel during the voyage by the Act of God without any intervention of a human. Here are some of the instances which are covered under the perils of the sea are-
Insured Perils in Marine Insurance
- Foundering at Sea – If a ship is found to be missing for a duration of time and there is no news about the missing ship, it would be considered as foundering at sea. Here, the loss would be assumed as caused by the perils of the sea.
- Ship wreckage — In a case where the ship collides against a hill or rock and is driven to the shore by the violent winds, it would be considered a shipwreck.
- Stranding – In a situation where a ship got out of the action after an accident and struck up in a shallow region of sands, it would be called stranding.
- Collision – In a case, where the ship collides with another ship, it will be considered as a collision.
There are some risks that are not covered in marine insurance under the perils of the sea. These are as follows:
- Wear and Tear
- Breakage of goods
- Springing a leak
- Inherent vice
- Death of animals onboard due to natural perils
- Loss by rats
The marine insurance policyholder has to prove that losses actually happened due to the perils of the sea to claim its benefits. with only.
Read more: What is the Meaning of Free on Board in Marine Insurance?
Case: 1
30 cases of betel nuts were ready to be sent from Chennai to Sri Lanka. The sea which was calm, suddenly became rough when the goods were waiting in the boat for discharging into the water. High swells splashed into the boats and damaged the goods. The owner of the ship had a marine insurance policy and therefore, approached the insurer for the claim settlement. The loss was believed to be due to seawater which came under ‘perils of the sea’. Therefore, the insurer settled the marine insurance claim. The insurer asked for documents like a complete account of the accident, a duly filled claim form along with other documents. After reviewing all the documents, the insurer agreed to settle the claim as per the sum insured.
Case: 2
Jack ship was carrying the consignment of rice. Suddenly the ventilators of a ship were closed in order to avoid the seawater entering during unaffordable weather conditions. However, the closing of the ventilators damaged rice due to excessive heat.
In this case, the owner of the ship approached its marine insurance company. It agreed to consider it under the perils of the sea. The insurer held that the incursion of the seawater through the ventilators came under the definition of the perils of the sea. In fact, the damages which happened due to the ventilator occurred due to action to prevent the perils of the sea from damaging the goods. In fact, it was a loss that happened due to the perils of the sea, and therefore, the insurer settled the claim accordingly.
Securenow is an experienced intermediary that can help understand the “perils of the sea” in a marine insurance policy and help you choose the right policy which fulfils your requirements.
